Apple’s developer conference this Monday showcased its latest advancements in AI technology to boost iPhone sales.
Amid fluctuating consumer spending and increasing competition, Apple is leveraging AI to rejuvenate interest among its over 1 billion users and to address declining sales of its flagship product.
The new software, operational only on the iPhone 15 Pro or Pro Max models, is expected to drive significant consumer upgrades. Analysts predict a major upgrade cycle this autumn, potentially the largest since the iPhone 12 launched in 2020 with 5G capabilities.
Analyst Gil Luria from D.A. Davidson found Monday’s reveals particularly striking. “What we saw today was more compelling than anything we’ve seen since,” he stated. Meanwhile, Tejas Dessai from Global X noted, “Investors want a more comprehensive and ambitious strategy from Apple when it comes to AI.” Following the announcement, Apple’s stock saw a 2% drop.
Apple’s AI features are not available for all iPhone models. The company clarified that the new AI capabilities would require an upgrade to the iPhone 15 Pro or Pro Max, introduced in September 2023. These models contain the necessary chips to process data directly on the device, enhancing privacy.
Gene Munster, a managing partner at Deepwater Asset Management, praised Apple’s seamless integration with ChatGPT, highlighting the ease of use in applying AI. “They’re taking the friction out of using AI,” he remarked.
Despite a drop in iPhone revenue to $200.6 billion in the fiscal year ending September 2023 from $205.5 billion the previous year, Apple continues to attract consumers with more than just AI.
 in 2024, it's interesting to consider how new unveilings could impact iPhone sales.){kind=link}