Apple’s recent developer conference went beyond showcasing the latest AI technology, including integrations with ChatGPT, and focused on boosting iPhone sales. Facing a challenging market and intense competition, Apple is leveraging AI to excite its over 1 billion users and counteract declining sales of its flagship product. The new AI features, available only on the iPhone 15 Pro and Pro Max, are expected to drive significant upgrades. Analysts predict the biggest upgrade cycle since the iPhone 12’s 2020 release. Gil Luria from D.A. Davidson highlighted the compelling nature of the new AI capabilities, dubbing it Apple’s most exciting innovation since 2020.
Apple’s “Apple Intelligence” can create custom emojis, generate cartoons, and enhance emails. Siri’s integration with ChatGPT aims to enhance user experience. However, some analysts remain skeptical about the immediate impact on sales, noting that the enhancements might not be enough to attract new users.
Wedbush Securities’ Dan Ives sees a substantial upgrade opportunity, estimating 270 million iPhones haven’t been updated in four years. He expects over 15% of the Apple user base to upgrade to the anticipated iPhone 16, driven by the new AI features. The iPhone 16 release is slated for this autumn, promising to further integrate user-friendly AI capabilities.