Apple's AI push could boost iPhone sales
On June 10, 2024, Apple found out good sized AI upgrades supposed to grow sales of their flagship iPhone. Apple's sales for the economic 12 months fell to $200.6 billion from $205.5 billion the year earlier, indicating a decline in iPhone sales. In an effort to buck the trend, the IT massive is incorporating ChatGPT and other artificial intelligence (AI) technology into its ecosystem.
Highlights:
- Apple introduced "Apple Intelligence" with personalized emojis and expert email creation for iPhone 15 Pro models to boost sales.
- Shares rose 3.3% following the announcement.
- Apple aims to drive iPhone upgrades with new AI features amidst declining sales and fierce competition.
A new generative AI tool called "Apple Intelligence" promises advances like personalized emojis and expert email creation. To use these features, however, you need at the very least an iPhone 15 Pro or Pro Max.
Analysts predict that this will kick off the largest wave of iPhone upgrades since the 2020 release of the iPhone 12, which will be popular especially to tech enthusiasts and early consumers.
Apple's shares increased 3.3% in early trading on the AI announcement, indicating a positive reaction from the market. This AI drive is important because it puts Apple in a position to attract customers with less friction when using AI. Analysts disagree on whether these changes will actually result in a notable increase in sales; some think a more comprehensive AI approach is required to generate significant customer demand.
Apple's decision was made in the face of declining consumer spending and fierce competition from recently resurgent tech rivals. Apple hopes to strengthen its position in the IT industry by enhancing user experience and integrating cutting-edge AI features like ChatGPT. Since 270 million iPhones haven't been updated in the last four years, the introduction of AI might persuade a sizable section of Apple's user base to upgrade to newer models, therefore increasing Apple's market share and establishing a new benchmark for consumer AI technology.
