Uncertain Future of Apple's New AI Smartphone: What to Expect?

On September 9, Apple unveiled its latest iPhone models, which are among the first to feature its new generative artificial intelligence (AI) system. The company is optimistic about these new devices, especially as competitors like Google and South Korean giant Samsung have already introduced phones equipped with generative AI. Apple needs to revitalize its iPhone sales, which saw a slight decline of 1% year-over-year, dropping to $39 billion from April to June.

Analyst J.R. Seville from an American e-commerce market research firm emphasized the significance of these new iPhones, stating, “They are Apple’s most profitable products.” Earlier this year, following the launch of the AI chatbot ChatGPT by OpenAI, Apple introduced "Apple Intelligence," a system designed to integrate new technology into its phones. This smart system is particularly adept at responding to emails and generating visuals, allowing users to pose more complex queries to the voice assistant Siri, such as verbally finding specific photos in their albums.

In recent months, companies like Google, Microsoft, and Meta have released various AI tools and commercial applications that can generate improved content based on everyday language commands. While Apple users will gain access to some new features of "Apple Intelligence" this fall, others may not be available until 2025, and some features may come with a fee.

Seville highlighted that "Apple will likely emphasize that only the latest models can fully leverage the 'Apple Intelligence' features." This strategy has dual objectives: a phased rollout of the new system may facilitate better management, and the availability of advanced AI technology could incentivize customers to upgrade their phones. According to statistics from the International Data Corporation, global smartphone sales featuring generative AI are projected to soar by 344% this year, accounting for 18% of total smartphone sales.

However, some analysts remain skeptical about Apple’s ability to monetize its generative AI. Dipanjan Chatterjee from Forrester Research noted that there is little differentiation between the new iPhones and earlier models. As a result, he questioned whether users would be eager to invest in the latest technology. Chatterjee expressed hope that Apple would "revitalize the voice assistant," particularly given its current performance challenges.