It has been observed that there is a rising trend in the sales of used smartphones, with shipments increasing by nearly 10 percent in 2023. According to research firm IDC, there were 309.4 million shipments of used smartphones in 2023, up from 282.6 million units the previous year. This indicates that for a majority of individuals, a smartphone that functions well is deemed sufficient.
Apple has been promoting privacy as a key component of its generative AI package. The company states that Apple Intelligence is deeply integrated into the core operations of devices such as the iPhone, iPad, and Mac through on-device processing. Apple’s AI tools are built on Apple-developed large language models, distinguishing themselves from other models in the market. These models ensure that user data remains secure, even when some processing is offloaded to Apple’s cloud servers.
The introduction of Apple Intelligence raises a crucial question regarding slightly older iPhone models, such as the iPhone 14 Pro. The use of generative AI features on newer devices implies that older models may not be compatible with this technology. Michael Gartenberg, a consumer technology analyst at Flash Advisory & Research, suggests that Apple may be signaling to users that older iPhone versions are no longer adequate.
The availability of Apple Intelligence raises concerns about its impact on iPhone sales. Gartenberg mentions that consumers may postpone buying a new iPhone until the release of models equipped with generative AI features. It is essential to consider whether consumers value these AI capabilities enough to justify purchasing a new device. Additionally, the limitation of Apple Intelligence to US English may not immediately boost iPhone sales in other regions such as China.
Carolina Milanesi, founder of the research firm Heart of Tech, highlights the importance of expanding Apple Intelligence to multiple languages and countries. The gradual rollout of new features and language support will likely influence iPhone sales in the future. Milanesi predicts a significant update cycle next year when more languages are integrated into Apple Intelligence. In regions like China, Apple will need to address language compatibility and data storage concerns to appeal to a broader market.
Apple’s strategy with the introduction of Apple Intelligence is to incentivize iPhone users to upgrade to newer models. By emphasizing the advanced AI capabilities of the latest devices, Apple aims to differentiate its products in a saturated smartphone market. The company’s focus on providing a smarter smartphone experience through generative AI features may sway consumers to consider upgrading their devices for a more enhanced user experience.
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