Published on June 5, 2024, 4:28 pm

Less than a week away from Apple’s Worldwide Developers Conference (WWDC) set to commence on June 10 at the company’s headquarters in Cupertino, Calif., Apple is gearing up to unveil its significant move into the realm of Generative AI (GenAI). Anticipation is high amongst investors eager for Apple’s entry into this innovative field. However, the impact of Generative AI on boosting iPhone sales may not be as immediate.

Thomas Husson, vice president and principal analyst at Forrester, explains that while Generative AI is expected to enhance user experiences, it may not be the primary factor influencing iPhone purchases. Consumers typically prioritize hardware features such as screen size, camera quality, and battery life over software advancements like GenAI.

Despite the potential future influence of Generative AI technology on driving iPhone upgrades as older devices become obsolete for running new AI applications efficiently, current consumer interest seems more centered on hardware specifications rather than software enhancements like GenAI.

Apple’s upcoming enhancements including a smarter Siri with improved voice control capabilities, transcription services, photo editing tools driven by Generative AI aim to offer users advanced functionalities. These developments align with industry trends where major tech players like Google and Samsung already provide similar features in their devices.

While initial consumer uptake of Generative AI-powered applications might be gradual, especially concerning third-party apps commonly used by consumers daily like WhatsApp or TikTok, the long-term impact is expected to drive future iPhone sales. The necessity for newer chips compatible with advanced GenAI functions could prompt users with older iPhones to consider upgrading when performance issues arise due to hardware limitations.

As developers begin incorporating Generative AI technologies into third-party apps over time, the true potential of GenAI in enhancing user experiences will gradually unfold. Although immediate sales boosts from GenAI adoption may be modest initially, Apple’s strategic focus on refining these features could pave the way for increased consumer interest in the future.

Looking ahead, while significant sales spikes may not materialize immediately following Apple’s next iPhone release slated for September, ongoing enhancements in Generative AI capabilities coupled with developer innovation are poised to shape consumer preferences effectively in favor of newer iPhone models in the years to come.

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