Code Cracked: The iPhone’s Secret to Silent Slump

Key Points

• Apple’s new AI features, Apple Intelligence, have not had a significant impact on iPhone sales, according to analyst Ming-Chi Kuo.
• A survey by SellCell found that most users see little to no value in Apple Intelligence.
• Apple Intelligence, which requires the latest hardware to process, may not be sustainable in the market due to competitive advancements in cloud-based AI.

Apple’s innovative AI features, Apple Intelligence, were introduced to much fanfare last year at WWDC. The technology touted advanced AI tools that would learn and adapt based on user input. However, it seems that Apple’s ambitious plans may be faltering in terms of tangible sales growth for their iPhones. Analyst Ming-Chi Kuo notes that his sources in the supply chain confirm that most users are not upgrading their iPhones because of Apple Intelligence.

Kuo’s analysis finds that Apple has struggled to keep the "buzz" surrounding Apple Intelligence alive after its initial reveal. This comes as cloud-based AI platforms such as OpenAI’s ChatGPT have leapt forward since Apple’s 2024 keynote. Kuo suggests that relying on on-device AI processing faces multiple structural hurdles, making Apple’s approach outdated in comparison. There is limited evidence that Apple Intelligence can revive hardware replacement cycles.

Despite limited uptake, Apple continues to tout its AI capabilities in ads and promotional materials, particularly for new hardware like the iPhone 16 and M4 Macs. These ads center around features such as Genmoji, Image Playgrounds, and ChatGPT integration. Other language support remains forthcoming, pending later this year.

While iPhone owners may see limited value in Apple Intelligence currently, the importance of AI can’t be downplayed. Companies are constantly emphasizing how AI is embedded in various everyday activities, providing benefits like quicker tasks and tasks with higher efficacy. For better use of iPhones and other compatible devices, focus on AI as it grows may bring improvements which we may still experience. Try it out after upgrading to iOS 18.2 and experience Apple’s innovative AI now!

Don’t forget to check out some new iPhone Tutorials.