In response to this, Apple is planning to upgrade the iPhone with artificial intelligence (AI) features, which could give it an edge over Chinese competitors. The company's AI efforts, led by ex-Googler and senior vice president John Giannandrea, could introduce several AI features to iPhones, such as a smarter Siri or improved photo editing capabilities. However, as the US and China are locked in a battle over technological supremacy, Chinese companies are also expected to incorporate AI into their devices.
Key takeaways:
- Apple's iPhone sales in China have been declining, with a 24% drop in the first six weeks of 2024, leading to Apple falling to fourth place in smartphone market share in the country.
- Reasons for the decline include a ban on officials using iPhones by the Chinese government, a shift in consumer preferences, and strong competition from local brands like Huawei, Vivo, and Honor.
- Apple is working on incorporating artificial intelligence into its devices, which could potentially give the iPhone an edge over its Chinese competitors.
- Despite the decline in China, Apple's iPhone still remains its biggest moneymaker, generating almost $70 billion of its $119.6 billion total revenue in its most recent quarter.