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This year’s WWDC is one of the most significant Apple events in recent years writes IDC vice president for data and analytics Francisco Jeronimo.
With smartphone, tablet and PC sales slowing down due to high adoption rates and offering just incremental improvements from the previous version of devices, Apple needs to reignite consumers excitement to encourage more frequent upgrades. We all remember the long queues outside Apple stores when a new iPhone was launched! The excitement generated by past product launches is critical Apple’s business and brand.
Since the introduction of the iPhone, the iPad, and the Apple watch, Apple has been the undisputable leader in terms of the user experience, and dominated sales of smartphones, tablets and smartwatches in value terms.
Over the last 17 years Apple has not faced any other disruptive technology as potentially detrimental for its business and its future, as AI, if not tackled in the right way. WWDC 2024 offered Apple and its CEO, Tim Cook, an opportunity to demonstrate how the company will lead in making AI a transformative, advanced, and intelligent experience for their users.
AI-enabled devices will be the fastest growing segment in for smartphones and PCs.
AI will enable Apple to offer unique and intelligent features, experiences and services to their customers. However, the key question remains: will these announcements be enough to secure Apple’s leading position? Many competitors (from phones to PCs vendors) have already revealed their AI strategies and devices. How can Apple stand out and how can a partnership with OpenAI help?
AI-enabled devices will be the fastest growing segment in for smartphones and PCs. IDC forecasts that AI Smartphones to reach 170 million units in 2024, and AI PCs to account for nearly 60% of all PC shipments by 2027.
Historically, the App Store has been at the heart of the value proposition of Apple’s iPhone and the iPad. The slogan “there’s an App for that” became iconic. However, AI is set to “kill” the apps and a new era is about to begin for Apple and the industry.
Today, the smartphone is not ‘Smart’ anymore.
Previously, the more apps the smartphone (and tablets) was able to run, and the more powerful the apps, the better the smartphone (or the tablet). Today, the smartphone is not ‘Smart’ anymore. With AI, the fewer apps needed and the more a phone can use data contextually to assist the user, the better the phone will be.
This will revolutionise the user experience, requiring an operating system able to learn from all devices and services in Apple’s ecosystem. Apple’s full control of its ecosystem, hardware and software, and seamless integration gives it a significant advantage over competitors and offers consumers the most powerful experiences among all device makers. This is particularly important when the experience will be defined by how well the phone “knows” the user, which can only be achieved by this seamless integration, while making sure the personal information and data remain private.
Although Apple is not the first to offer AI-enabled features, it is in its DNA to offer the perfect experience. AI will not just offer the best experience, but the most powerful, disruptive, personalized and private, and that’s exactly what Apple showed today with Apple Intelligence.
While AI-generated Emojis will grab the headlines, Apple showcased how AI will empower users in several ways, particularly around productivity, education and entertainment.These are the areas where Apple already excels with its range of services and applications.
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As user interaction shifts from opening an app to asking the phone, Siri is the glue to all of this, the killer feature that will attract consumers to AI enabled devices. Siri will offer a unique way to interact with all Apple devices using our voice in a more personalized and conversational manner.
It will become a true digital assistant contextually understanding various aspects of users’ lives and providing human-like responses by accessing data across all devices to provide the right response to the users’ needs. This conversational digital assistant fully integrated with all devices will be a game changer, and I believe it will offer a compelling reason for many to upgrade their iPhones in the years to come.
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Apple’s strength lies in the breath of its portfolio and its ecosystem. For consumers, it does not matter what is the definition of an AI-enabled iPhone, or how many TOPs it can run. What matters is how well a phone can assist users in managing their lives. By reducing the need to navigate multiple apps,
Apple’s AI-enabled devices will offer a smoother, more intuitive and smarter experience. This marks the beginning of a new era for Apple and for their users and will help Apple to benefit from a future super cycle of device sales and the transition to intelligent devices in the years to come.
Francisco will be discussing worldwide trends in used mobile phone sales at Mobile News’ secondary markey conference Circular Summit