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Apple's AI bet isn't the silver bullet the company needs

Jun 11, 2024 - businessinsider.com
Apple unveiled its new artificial intelligence system, Apple Intelligence, at the Worldwide Developer Conference, but analysts predict it may not attract new customers or yield significant results. The AI system will only be available in the next software updates, iOS 18, iPadOS 18, and Sequoia, and only on iPhone 15 Pro or later models. While some features are seen as potential growth drivers, others, like email summarization and a customizable home screen, are already offered by competitors. Additionally, advanced AI features will initially only be available in American English, which may limit its appeal in foreign markets.

Analysts from Forrester and Wedbush Securities believe that while the new AI system may not attract a new customer base, it could incentivize existing customers to upgrade their devices. However, there is still uncertainty about whether users of other brands, like Samsung, will switch to iPhone for this feature. Morningstar tech analyst William Kerwin suggests that the focus is more on encouraging existing customers to spend more and upgrade to new phones, rather than attracting new buyers.

Key takeaways:

  • Apple unveiled its new artificial intelligence system, Apple Intelligence, at the Worldwide Developer Conference, but analysts predict it may not attract many new customers.
  • The new AI system and other updates will only be available in the next software updates, iOS 18, iPadOS 18, and Sequoia, and only on iPhone 15 Pro or later models.
  • Many of the advanced AI features will initially only be available in American English, potentially limiting their appeal in foreign markets.
  • While new customers may not be attracted, the updates may incentivize existing customers to spend more and upgrade to the new phones, according to Morningstar tech analyst William Kerwin.
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