According to research firm IDC, this trend is reflected in aftermarket data: shipments of used smartphones increased by almost 10 percent in 2023 to 309.4 million units, compared to 282.6 million units a year earlier. For many people, a good phone is just good enough.
Apple is also selling privacy as part of its generative AI suite, saying Apple Intelligence “is integrated into the core of iPhone, iPad and Mac through on-device processing.” Apple’s AI tools utilize Apple-developed huge language models, rather than relying on third-party models or an LLM mosaic like confirmed by Axios. In cases where the iPhone is unable to process user actions or queries on its device, Apple Intelligence will send the user’s data to a server running on Apple silicon, which will keep the user’s personal information sheltered, the company says.
This begs the question: If Apple is already planning to move some processing to its cloud, couldn’t a slightly older iPhone – like the iPhone 14 Pro, which is powered by a slightly older chip – also get the AI shine? up?
Michael Gartenberg, a consumer technology analyst at Flash Advisory & Research who previously worked at Apple, says he technically can’t tell at this point whether Apple is “not being honest about the devices you can run this on.” However, I know iPhones already support ChatGPT and a ton of Google AI features, so I suspect this is the opportunity Apple has been waiting for to tell you that iPhone 13 really isn’t good enough anymore,” he says.
Another question that arises with iPhone sales is the introduction of Apple Intelligence, does this give consumers a reason to NO buy an iPhone before the coming fall, Gartenberg says, which puts the current iPhone buying cycle on hold. (Assuming buyers want generative AI features at all; Pew survey results suggest that Americans are a bit more worried than excited about generative AI).
And because Apple Intelligence will only be available in English in the US at first, it’s unlikely to immediately boost iPhone sales elsewhere – such as China, one of Apple’s most crucial markets – unless Apple makes key future,” says Carolina Milanesi, founder of Apple, and research company Heart of Tech.
“It depends on how they make the solutions available in other countries,” he says, for example if AI-generated Genmoji are offered as a feature before text editing or other language-based features. “A larger update cycle will occur next year as more languages are added,” Milanesi predicts. He says Apple must not only develop language support, but also determine how it will handle data storage in China.
Either way, Apple now has a up-to-date way to get iPhone buyers to upgrade in September. This time it’s not just about selling them on a up-to-date camera placed in the same container; will undoubtedly go to great lengths to convince customers that every newer iPhone is a much smarter smartphone, offering a bit of generative AI that’s much more palatable than the AI chat platforms that are still looking for a utilize.