Apple Intelligence Fail to Boost iPhone Sales

Apple Intelligence has not met expectations in boosting hardware sales or service revenue. This assessment comes from multiple sources, including statements from Apple CEO Tim Cook and market surveys.



In a recent Wired interview, Tim Cook revealed that Apple has never internally discussed charging for Apple Intelligence. This disclosure contradicts earlier analyst predictions that the AI feature could generate subscription revenue and drive the company's services business.



A survey shows that the majority of iPhone users find little value in Apple Intelligence features. This lack of consumers proves the supply chain data shows no increase in iPhone replacement demand attributed to AI technology.



Apple's focus on using AI directly on devices faces challenges when compared to quickly improving cloud-based AI services. After its launch at WWDC 2024, interest in Apple AI has decreased as competitors made big leaps in AI technology.



Apple AI is slowly being introduced and is currently only available in English. Unlike past iPhone upgrades that came from big hardware changes or high demand, Apple Intelligence has not been a strong reason for many people to upgrade their phones.



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