Apple Intelligence, the company's forthcoming AI feature set, isn't driving sales of its newest gadgets as well as it hoped. This claim comes from analyst Ming-Chi Kuo from KGI Securities, writing on his blog. Apple, he claims, has already cut its iPhone 16 order by 10m units.
Some market participants are optimistic that Apple Intelligence could dramatically boost iPhone shipments soon. However, Apple's recent order cuts suggest this optimistic expectation may not materialize in the short term. I believe that Apple is best positioned to succeed in on-device AI, and I am confident about the long-term potential for Apple Intelligence to become a popular paid service. However, significant growth in iPhone shipments will likely require further hardware innovation to accompany this AI development.
Gizmodo's Kyle Barr elaborates on the context:
There's a chance that iPhone sales could be boosted by the rumored iPhone SE 4, with Apple Intelligence support reportedly slated to launch early next year. Now we have an AI-capable iPad mini plus the promise of a new iPad 11 that could support AI in 2025, according to Gurman's sources. Tim Cook's company is set to release even more AI-capable products with a lineup of MacBook Pros, Mac minis, and iMacs with M4 chips, reportedly slated for launch by the end of October or early November.
Looks like one of those "marketing bubbles" we hear so much about. Maybe tech folks are not quite sensing how uninterested normal people are in AI, or how ready they are to see it in the context of negative tech reportage in general and nasty AI slop in particular. It's no good saying "it does things for you." That makes it worse, Jared!
Consider the stock sitcom episode (especially common in British shows) where by some contrivance of luck or fortune a working-class person gets to experience the life of the elite. A running joke within the stock episode will be the lottery winner/secret bastard/impostor being comically uncomfortable with servants in their personal space. They will be embarrassed by their presence, try to interact with the servants as human beings, briefly take interest in prodding and provoking them to find the limits of their servitude, and finally end up repulsed by the uncanny and dehumanizing nature of the relationship. In science fiction, the servant will be an ambigiously sentient robot. Something about on-device, UI-integrated AI reminds me of that sort of thing. I don't want it.