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AI: Apple’s Key to Convincing You to Upgrade Your iPhone

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In Short:

Used smartphone shipments increased by nearly 10 percent in 2023, according to IDC. Apple is emphasizing privacy with its Apple Intelligence AI package, using on-device processing to keep user data secure. There are questions about whether older iPhones will be able to support this feature and how it will affect iPhone sales. Apple plans to launch Apple Intelligence in US English first, with more languages to follow next year.

Surge in Used Smartphones Shipments in 2023

Recent secondary market data shows a significant increase in shipments of used smartphones in 2023. According to research firm IDC, shipments rose by nearly 10 percent, reaching 309.4 million units, up from 282.6 million units in the previous year. This trend indicates a growing preference among consumers for reliable and functional devices.

Apple’s Privacy-centric Approach with Apple Intelligence

Apple is emphasizing privacy as a key component of its generative AI package known as Apple Intelligence. The company highlights that Apple Intelligence is deeply integrated into iPhone, iPad, and Mac devices through on-device processing, enhancing user privacy and security.

In instances where device processing capacity is exceeded, Apple Intelligence ensures data security by transferring user information to a server running on Apple silicon, maintaining personal data confidentiality.

Potential Impact on Older iPhone Models

The introduction of Apple Intelligence raises questions about the compatibility of older iPhone models, like the iPhone 14 Pro, with advanced AI features. Michael Gartenberg, a consumer technology analyst, suggests that Apple may use this opportunity to position newer iPhone models as the preferred choice by emphasizing enhanced AI capabilities.

Global Market Implications

While Apple Intelligence initially supports US English only, its availability in other languages in the future may influence iPhone sales in various markets. Carolina Milanesi, founder of the research firm Heart of Tech, highlights the importance of language support and data storage considerations, particularly in markets like China, where Apple’s presence is significant.

Apple’s Strategy to Drive iPhone Upgrades

Apple’s focus on advancing AI capabilities through Apple Intelligence presents a compelling reason for consumers to consider upgrading their iPhones in the upcoming cycle. The company aims to differentiate newer iPhone models by offering advanced generative AI features, appealing to tech-savvy customers seeking innovative functionality.

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