Apple launched its own set of AI tools, Apple Intelligence, last year. Because it’s all processed on-device, Apple Intelligence requires modern hardware, such as an iPhone 15 Pro or later. Nonetheless, Apple Intelligence’s requirements did not help Apple increase iPhone sales, according to analyst Ming-Chi Kuo.
Apple Intelligence leaves users unsure about buying a new iPhone
Kuo said in a post on his blog that Apple’s efforts to promote Apple Intelligence have not translated into increased iPhone sales. According to his sources in the supply chain, most iPhone owners don’t seem interested in buying the new model just because of its AI features. A SellCell survey last month found that most users see little or no value in Apple Intelligence so far.
The analyst points out that Apple has been unable to maintain the “initial buzz” after announcing Apple Intelligence at WWDC 2024. That’s because competitors “made rapid progress in the following months.” Kuo believes that while other AI platforms, such as OpenAI’s ChatGPT, benefit from being cloud-based, Apple Intelligence relies entirely on hardware processing.
“Apple’s efforts to promote on-device AI face a number of structural challenges. For example, despite the initial buzz after Apple Intelligence debuted at WWDC 2024, its appeal has declined significantly compared to cloud-based AI services that have advanced rapidly in the months since,” Kuo said. “There is no evidence that Apple Intelligence helps hardware replacement cycles,” the analyst added.
Apple has been rolling out Apple Intelligence features in stages. First, the company introduced writing tools and summary functions starting with iOS 18.1. Apple then introduced Genmoji, Image Playgrounds, and ChatGPT integration with iOS 18.2. The long-promised, more advanced Siri with screen recognition has yet to launch in April.
Another aspect that will definitely influence your interest in Apple Intelligence is its availability. That’s not just because of the hardware requirements, but because Apple’s AI features are still only available in English. The company says it will introduce support for more languages later this year.
Nonetheless, Apple has been actively using Apple Intelligence to promote its latest hardware. Most of the iPhone 16 and M4 Mac ads highlight features like Genmoji and text summaries.
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