Trends

Analysts expect the new AI features to help reinvigorate iPhone sales

AuthorBTW Editorial

Reading Time2 min

PublishedAugust 2, 2024

Primary DomainN/A

Content TypeN/A

TopicN/A

EntityN/A

RegionN/A

Time HorizonN/A

ImpactN/A

ConfidenceN/A

Headline

Context

OUR TAKE The decline in iPhone sales is significant because the iPhone is a major revenue driver for Apple, and any sustained drop can impact the company’s overall financial health and market position. So Apple’s AI strategy and its impact on iPhone sales are crucial for the company’s revenue, competitive position and overall technological advancements. -Lia XU, BTW reporter Apple’s iPhone revenue fell for the second consecutive quarter, with a nearly 1% decline from the prior year to about $39.3 billion, beating Wall Street expectations. However, many investors remain optimistic about the company’s prospects in the next year and believe the company’s AI plans will spark a rally.

Evidence

Pending intelligence enrichment.

Analysis

Apple has been trying to catch up to rivals in the artificial intelligence arms race, unveiling an array of new AI tools in june like Apple Intelligence , its system for deeply embedding generative artificial intelligence features into its operating system and improving siri voice assistant. And investors hope will encourage users to upgrade their iPhones. Analysts expect the new AI features to help reinvigorate iPhone sales, which will only be available to the iPhone 15 Pro, the company’s most premium iPhone model, expected to be released in september. Also read: Apple unveils training details of Apple Intelligence models Also read: Apple releases iOS 18.1 and macOS 15.1 betas with AI features

Key Points

Apple’s iPhone revenue fell for the second consecutive quarter, with a nearly 1% decline from the prior year to about $39.3 billion.
Although iPhone sales have lagged, many investors remain optimistic about the company’s prospects in the next year, believing the company’s AI plans will spark a rally.