Apple Intelligence isn’t helping Apple boost iPhone sales, says analyst

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Apple last year introduced Apple Intelligence, its own set of AI tools. Since they are all processed on-device, Apple Intelligence requires the latest hardware such as the iPhone 15 Pro and later. Even so, according to analyst Ming-Chi Kuo, the requirements of Apple Intelligence haven’t helped Apple boost iPhone sales.

Users not convinced to buy a new iPhone because of Apple Intelligence

In a note on his blog, Kuo said that Apple’s efforts to promote Apple Intelligence haven’t resulted in an increase in iPhone sales. According to his sources in the supply chain, most iPhone owners don’t seem interested in buying a new model just because of the AI features. A SellCell survey last month revealed that most users see little to no value in Apple Intelligence so far.

The analyst notes that Apple was unable to sustain the “initial buzz” after announcing Apple Intelligence at WWDC 2024, as its competitors “have advanced rapidly in subsequent months.” Kuo believes that other AI platforms such as OpenAI’s ChatGPT benefit from being cloud-based, while Apple Intelligence is entirely reliant on hardware processing.

“Apple’s efforts to promote on-device AI face multiple structural challenges. For example, despite the initial buzz following Apple Intelligence’s debut at WWDC 2024, its appeal has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months,” Kuo said. The analyst added that “there is no evidence of Apple Intelligence’s ability to benefit hardware replacement cycles.”

Apple has been rolling out Apple Intelligence features in phases. First, the company introduced Writing Tools and the summarization feature with iOS 18.1. Then, with iOS 18.2, Apple introduced Genmoji, Image Playgrounds, and ChatGPT integration. The long promised more advanced Siri with on-screen awareness is yet to come in April.

Another aspect that certainly affects interest in Apple Intelligence is its availability. Not just because of the hardware requirements, but because Apple’s AI features are only available in English so far. The company says it will introduce support for more languages later this year.

Even so, Apple has been heavily using Apple Intelligence to promote its latest hardware. Most of the ads for the iPhone 16 and M4 Macs highlight features such as Genmoji and text summarization.