As Apple prepares to announce its earnings for the crucial holiday quarter, many analysts are eager to see how significantly Apple Intelligence influences iPhone sales. While immediate effects may be limited, the transformative potential is certainly on the horizon.
iPhone 16 is performing well, but significant AI effects are yet to be seen
Following Apple’s introduction of its AI features last June, experts began to forecast an upcoming iPhone supercycle.
The consensus was that AI would greatly enhance iPhone demand and encourage earlier upgrades than anticipated.
Since Apple’s last earnings report took place shortly after the iPhone 16 launch, and the initial Apple Intelligence features were not yet available, it was no surprise that sales were relatively typical for a new iPhone release.
There was a modest 5% increase in sales, but that hardly qualifies as a ‘supercycle’ surge.
The upcoming earnings report will provide clearer insight into any potential AI influence.
While Apple is projected to report a solid quarter, expectations indicate that iPhone sales will show good performance, albeit without any major breakthroughs.
It’s worth noting that the iPhone’s success is exceptional, as nothing else in Apple’s lucrative lineup comes close to the sales numbers of the iPhone.
However, consistent high performance is typical for the iPhone. What concerns Wall Street the most is growth, and it looks like substantial AI effects may not materialize just yet.
Nonetheless, there is no need for concern, as the anticipated iPhone supercycle is likely to unfold in the coming years—it may just take a bit longer than originally foreseen.
Hardware upgrades set the stage for significant Apple Intelligence advancements
Apple Intelligence encompasses a suite of software capabilities reliant on the development of robust hardware by Apple.
We are beginning to witness the influence of AI on Apple’s hardware decisions:
- The entire iPhone 16 range has been upgraded to 8GB of RAM—a feature previously exclusive to Pro models—and even the upcoming iPhone SE 4 is expected to include an AI-capable chip and RAM.
- On the Mac side, Apple has enhanced all new Macs to feature 16 GB of base RAM, a move that likely wouldn’t have occurred otherwise.
- In the coming months, Apple’s complete iPad lineup will be equipped with modern chips that facilitate AI functionalities—even the budget versions.
Additionally, there are whispers of significant hardware developments in the pipeline.
This year, the iPhone 17 Pro models are expected to feature 12GB of RAM, and all iPhone 17 variants will benefit from improved cooling systems. We can also expect substantial advancements with the A19 chip series, particularly around the Neural Engine.
As a longtime observer of Apple, witnessing such rapid hardware enhancements within a short timeframe is uncommon.
Yet, the demands of Apple Intelligence necessitate these upgrades—not merely for current functionalities, but also for future developments anticipated for iOS 19, iOS 20, and beyond.
In the next few years, the hardware of iPhones will evolve significantly to support the forthcoming AI features.
This unprecedented blend of hardware and software changes will make older iPhone models lose their appeal quickly.
Comprehensive Overview: The Upcoming Apple Intelligence iPhone Supercycle
At this moment, existing Apple Intelligence functionalities aren’t driving a considerable surge in iPhone upgrades. Is AI having some influence? Certainly, but it’s still limited.
However, in the next 2-3 years, I am confident that AI will serve as a powerful catalyst for upgrades. The benefits provided by Apple Intelligence will become increasingly undeniable.
Patience is key as we await the arrival of this anticipated supercycle.
Do you believe AI will be a driving force for an iPhone supercycle? Share your thoughts in the comments.
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