Apple Surpasses This Tech Giant: How They Are Betting on AI to Dominate the Market

On Wednesday, major smartphone rivals Apple and Samsung both made significant moves in the AI sector, betting that the AI trend will spark a new wave of smartphone purchases. Amid the excitement surrounding AI, regulatory pressures on tech companies remain prevalent.

Recent reports indicate that Apple plans to substantially increase the shipment of its upcoming iPhone 16, with estimates suggesting at least 90 million units. Sources suggest that Apple's new “Apple Intelligence” system may drive demand for the new device. Following this news, Apple’s stock rose by 1.88%, closing at $232.98, marking the company's seventh consecutive day of record close and more than a 21% rise this year.

On the same day, Samsung unveiled its latest AI-driven foldable smartphone. Since launching its first foldable models in 2019, Samsung has aimed to create devices that are lighter, thinner, and equipped with advanced AI features. Expecting consumers to invest in higher-end AI smartphones, Samsung raised the starting prices of its two new models to $1,900 and $1,100, an increase of $100 compared to their predecessors. This move comes at a crucial time as Apple and Samsung compete for smartphone sales dominance.

According to Canalys, global smartphone shipments reached 1.1 billion units last year, declining by 4% year-over-year, with Apple surpassing Samsung as the leading vendor for the first time.

Despite the ongoing excitement over AI, the scrutiny of regulations is intensifying. Recently, Microsoft and Apple stepped back from their observer roles on the board of OpenAI, prompting discussions about the implications of regulatory investigations into the relationships between major tech companies and AI providers. Experts have suggested that Microsoft's decision may be significantly influenced by antitrust investigations by European and American regulators, who are increasingly scrutinizing the complex networks of relationships within the tech industry. Additionally, regulatory bodies in the UK are exploring a $4 billion partnership between Amazon and AI startup Anthropic. European competition regulators, including Margrethe Vestager, have expressed concerns that tech giants may be masking their investments in startups to circumvent scrutiny on mergers and acquisitions.