Apple's AI Has a Catch — And It Could Help Boost Sales

Jun 12, 2024 12:23 AM - 7 months ago 167474

Apple's new AI could boost income of its biggest gross generator: nan iPhone.

Apple Intelligence, first announced connected Monday astatine Apple's yearly developer conference, noticeably enhances existing iPhone features. Siri, for example, tin usage accusation from different iPhone apps to reply questions much thoroughly and nonstop questions that it can't reply straight to ChatGPT. There are besides caller AI-generated emojis coming to nan iPhone.

But successful nan mini people astatine nan extremity of yesterday's AI announcement, Apple noted that though its AI package upgrade will beryllium free, it will only beryllium disposable connected 2 iPhone models: nan iPhone 15 Pro and 15 Pro Max.

Related: Apple Is Expanding What The iPhone Can Do

Analysts now opportunity that AI could beryllium nan logic why Americans who are still holding connected to older iPhones determine to upgrade.

Experts told Reuters that nan caller iPhones Apple is expected to denote later this twelvemonth could beryllium nan company's biggest upgrade rhythm yet since nan iPhone 12 successful 2020, which had 5G arsenic a trading point.

"What we saw coming was much compelling than thing we've seen since," expert Gil Luria of D.A. Davidson told nan publication.

The astir celebrated iPhone successful North America was nan iPhone 11, according to a 2023 MOVR marketplace report — truthful nan galore Phone owners successful nan U.S. who person older models will not beryllium capable to usage Apple's AI erstwhile it becomes disposable this fall.

Wedbush Securities expert Dan Ives told Reuters that an estimated 270 cardinal iPhones had not been upgraded successful nan past 4 years.

Ives predicted that much than 15% of Apple's existing customer guidelines will level up to nan newest iPhone that Apple releases this fall.

Photo by Thilina Kaluthotage/NurPhoto via Getty Images

Apple's iPhone 14 was nan bestselling smartphone globally past year, according to Counterpoint Research.

iPhones accounted for complete half of Apple's wide gross successful nan 2nd 4th of 2024.

Apple has ventured into different markets recently, including mixed reality pinch nan Apple Vision Pro headset.

Related: What's Next for Apple After Vision Pro? Home Robots

More