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AI: Apple’s Strategy to Encourage iPhone Upgrades

Byadmin

Jun 14, 2024

Apple is leveraging its new artificial intelligence features as a key tactic to drive iPhone upgrades, with hopes for a successful September.

During its annual developer conference, Apple introduced Apple Intelligence, a suite of AI tools trained on massive datasets. Unlike other AI implementations that create chatbots or search engines, Apple’s approach integrates AI enhancements directly into its existing apps. Once deployed across iPhones, Macs, and iPads later this year, Apple Intelligence will enable features such as transforming sketches into images, sorting photos and videos, rewriting emails, adjusting message tones, and enhancing Siri’s capabilities to provide smarter responses.

However, these AI features will be exclusive to the latest hardware: the iPhone 15 Pro and Pro Max with the A17 Pro chip, iPads Pro and Air with the M1 chip or later, and Mac computers with M1 chips or newer. Apple hasn’t specified why these features are limited to the newest devices, though experts suggest it may be due to the performance capabilities of older chips or a strategic move to differentiate its products.

This strategy could be Apple’s best bet to encourage upgrades, especially as iPhone sales have recently declined. In the last reported quarter, Apple experienced a 10 percent year-over-year drop in iPhone sales, marking the largest decline since the summer of 2020. The company’s revenue decreased by 4 percent compared to the previous year, though its gross margin remained robust due to its expanding services sector.

Apple’s hardware has introduced numerous features over the years, but many have become standard or less prominent. While its cutting-edge chips appeal to high-end consumers, midrange buyers may not find features like “CoreML on Apple silicon” compelling. With competitors like Samsung and Google offering advanced cameras and convenience features such as wireless charging, Apple is banking on its AI advancements to spark an upgrade cycle and boost its growth trajectory.

By admin

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