Apple’s AI Gamble: Will the New iPhones Spark a Revival?
In 2022, OpenAI’s ChatGPT sparked a renewed interest in artificial intelligence (AI). This triggered a rush amongst tech behemoths such as Microsoft, Meta, and Google to build their own AI solutions. By the end of 2023, Nvidia had established itself as a vital participant, benefitting handsomely from powering these AI-driven services. Fast forward to 2024, and the focus has switched to consumer electronics, with corporations attempting to incorporate AI into smartphones and laptops.
This year, various AI-powered products have entered the market. Samsung released the Galaxy S24 with AI capabilities, and Microsoft collaborated with Dell, HP, and Qualcomm to offer Copilot+ PCs, which are AI-focused machines. Google also launched the AI-enabled Pixel 9 series. However, these gadgets have failed to provide revolutionary experiences, instead giving just minor enhancements such as quicker picture editing, chatbots, and live video subtitles. Even Humane’s AI pin, a clip-on gadget debuted in April, garnered unfavorable feedback, with reports showing that refunds exceeded sales by August.
Apple wants to shift this narrative. The business is slated to showcase a new range of AI-ready iPhones on Monday, incorporating a system called Apple Intelligence, which was unveiled in June. This system will be progressively rolled out over the next few months and will be compatible with existing devices including as the iPhone 15 Pro, newer iPads, and Macs.
Apple Intelligence is intended to improve the user experience within the Apple ecosystem, however it does come with a hurdle. Because the software is free, Apple must persuade its vast customer base to upgrade to new hardware, signaling to Wall Street that a new iPhone upgrade cycle has begun. This is a major problem for the firm, since the pandemic-related sales downturn has been tough to overcome.
However, consumer interest in AI products is dubious. According to Canalys study, just 7% of customers are extremely likely to buy AI-powered gadgets. Interest is higher in Apple’s important markets, the United States and China (15% and 43%, respectively), but the gap shows Apple’s problem in making AI a popular selling point.
Apple Intelligence will use personal data stored on devices to improve Siri, making it a more proficient assistant. App developers will be able to embed Apple Intelligence into their apps, making AI more accessible throughout the iPhone ecosystem. This strategy varies from that of Google and Samsung by providing a more integrated AI experience.
While Samsung’s Galaxy S24 has outperformed its predecessor, there is no indication that AI is the key driving force behind its success. Apple’s unique market position and client base make the stakes higher. If Apple is successful in marketing Apple Intelligence and increasing iPhone sales, the next stage will be to expand its AI capabilities abroad.
However, substantial obstacles are ahead. In China, Apple must overcome tough government rules before launching AI capabilities, but in the European Union, the corporation confronts severe legislation that may delay the rollout of Apple Intelligence.
For the time being, Apple’s AI capabilities will be confined to a select set of consumers. The company’s goal is to encourage users to invest in new gadgets and embrace the next wave of AI-powered experiences.
Source: Original article by Steve Kovach, published on CNBC on September 5, 2024. You can check out the full article here
Hi, I'm Voss Xolani, and I'm passionate about all things AI. With many years of experience in the tech industry, I specialize in explaining the functionality and benefits of AI-powered software for both businesses and individual users. My content explores the latest AI tools, offering practical insights on how they can streamline workflows, boost productivity, and drive innovation. I also review new software solutions to help readers understand their features and applications. Beyond that, I stay up-to-date with AI trends and experiment with emerging technologies to provide the most relevant information.