Report: Apple’s confidence in AI is leading Android makers to stockpile chips, prioritize AI features

For months leading up to the introduction of Apple Intelligence features at WWDC, the idea was commonly thrown around that Apple was “behind” in AI.

It turns out, according to a new report, that some Android makers were even further behind, waiting to see what Apple would do with AI. Now, as a result of Apple’s confidence in the technology, they are scrambling to go all-in too.

Increased iPhone 16 orders has sparked an AI frenzy among Android makers

Earlier this week Bloomberg reported that Apple had upped its initial orders for the iPhone 16 lineup, in part due to the expected demand for Apple Intelligence features.

The company boosted its iPhone 16 orders by more than 10%, with plans to ship more than 90 million units before the end of 2024 alone.

It seems that Apple’s confidence in AI has sparked a wave of AI activity among its competition.

Jay Liu and Jack Wu write for Digitimes:

Apple’s increased orders have intensified the competition in the 2024 flagship smartphone market…The Android camp, in particular, hopes to leverage the AI trend to reclaim market share lost to Apple in recent years. Consequently, they are prepared to promote AI flagship models extensively.

Beyond aggressive stockpiling, major brands are focusing on making their smartphones more appealing through the introduction and innovation of AI features. This has become a top priority, especially after Apple declared a significant push into the AI field, demonstrating the consumer appeal of AI features.

The report explains that major SoC suppliers like Qualcomm and MediaTek have been stockpiling chips, as expectations are that all major flagship phones will move to 3nm fabrication processes like the iPhone. This will enable more computing power at lower battery cost—a key combo for supporting AI features.

9to5Mac’s Take

When Apple does something, its competitors take notice. And clearly, even though it became trendy to push the narrative that Apple was behind on AI, it seems that several other companies were waiting on Apple. Waiting for them to, in a sense, legitimize AI as a mass market, user friendly technology. And Apple Intelligence has a solid shot at doing that.