Last year, Apple launched Apple Intelligence, a suite of AI tools designed for on-device processing. To utilize these tools, users must have the latest devices like the iPhone 15 Pro or models that came after it. However, analyst Ming-Chi Kuo notes that the introduction of Apple Intelligence has not significantly boosted iPhone sales.
Customers Unconvinced by Apple Intelligence for Upgrading
Kuo mentioned on his blog that Apple’s promotion of Apple Intelligence has not led to increased iPhone sales. Insights from his supply chain contacts indicate that many current iPhone users aren’t motivated to upgrade merely for the AI functionality. A recent survey from SellCell showed that a majority of users find little to no worth in Apple Intelligence up to this point.
The analyst remarked that Apple was unable to maintain the “initial excitement” following the announcement of Apple Intelligence at WWDC 2024, especially as competitors have made significant advances since then. Kuo observes that cloud-based AI platforms, like OpenAI’s ChatGPT, have gained traction while Apple’s offering remains entirely dependent on hardware capabilities.
“Apple’s push for on-device AI encounters numerous structural obstacles. For instance, despite the initial excitement after unveiling Apple Intelligence at WWDC 2024, its attractiveness has dramatically waned compared to rapidly progressing cloud-based AI solutions,” Kuo stated. He added, “There is no indication that Apple Intelligence will positively impact hardware replacement cycles.”
Apple has been gradually rolling out features associated with Apple Intelligence. Initially, tools for writing and a summarization feature were introduced with iOS 18.1. Subsequently, iOS 18.2 brought forth Genmoji, Image Playgrounds, and integration with ChatGPT. The awaited update for a more advanced Siri is slated for release in April.
Another factor influencing the interest in Apple Intelligence is its limited availability. The features are only accessible in English at this time, a restriction attributed to hardware prerequisites. Apple has announced plans to support additional languages later this year.
Despite these challenges, Apple has actively promoted Apple Intelligence in its marketing efforts for new hardware. Most advertisements for the iPhone 16 and M4 Macs emphasize features such as Genmoji and text summarization.
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