Apple’s AI will boost iPhone sales, but not right away

Apple Intelligence

Apple is gearing up to share its holiday sales figures, and everyone’s curious if its new AI features will spike iPhone sales. Here’s the deal: while the AI boost isn’t here yet, it’s definitely on its way.

The iPhone 16 is Doing Well, But AI’s Big Moment is Coming

Back in June, when Apple rolled out its AI features, experts predicted a boom in iPhone sales. They thought AI would push people to upgrade their phones faster than usual.

When Apple last announced its earnings, the iPhone 16 had just hit the market, and the AI features weren’t fully live yet. Sales went up by 5%, which is good but not the massive jump some were hoping for.

This Week’s Earnings Will Give Us a Better Look

This week, we’ll get a clearer picture of how AI might be influencing sales. While Apple is set to report a solid quarter, iPhone sales are expected to be good but not groundbreaking. Remember, the iPhone is Apple’s star product. However, what investors really want to see is growth, and it might be a while before AI truly drives that.

Hardware Upgrades Are Setting the Stage for AI

Apple’s AI features need strong hardware to work well. Here’s what Apple has been doing:

  • All iPhone 16 models now come with 8GB of RAM, a feature once only in Pro models.
  • The next iPhone SE will have an AI-friendly chip and more RAM.
  • All new Macs now start with 16GB of RAM, likely due to AI demands.
  • Even the cheapest iPads are getting chips that support AI.

Rumors are swirling about even better hardware for the iPhone 17, including 12GB of RAM and enhanced cooling systems. The upcoming A19 chip will probably bring some significant AI enhancements.

Looking Forward to a Supercycle

Right now, the current AI features aren’t pushing a massive wave of upgrades. But give it 2-3 years, and AI will likely be a major reason for people to switch to newer models. The advantages of Apple’s AI will become too compelling to ignore.

In short, while we’re not seeing an AI-driven supercycle yet, it’s brewing. The combination of new hardware and software will soon make older iPhones feel outdated, setting the stage for a big sales surge.