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apple (AAPL+1.23%) It is planned to be introduced Much-touted artificial intelligence capabilities next week, but analysts don’t expect developments to accelerate demand lag About the latest iPhone lineup.
Apple Intelligence, as the suite of features is known, is the Cupertino, California-based company’s first foray into AI. but, Deployment delays And a global slowdown in smartphone sales in the quarter dampened hopes that the iPhone maker might turn around. Increased upgrades.
The tech giant may add Apple Intelligence to iPhones, specifically iPhone 15 Pro and newer models, in a software update on October 28th, giving users an idea of what capabilities Apple’s version of AI will be able to achieve. You can find out for the first time. However, Jefferies analysts (jeff-1.20%) In a research note published on Sunday, they warned that this was unlikely to yield results. iPhone sales Boost.
read more: Apple is losing to Huawei in China. The reason is as follows
Jeffries said the upgrades, which include limited hardware features and a relatively small AI model, are “not significant enough” to improve iPhone sales.
The research firm expects Apple Intelligence features to roll out gradually in software updates over the next six months, but significant enhancements to iPhone’s AI capabilities likely won’t arrive until 2026.
Sales of the new iPhone have been significantly disappointing, with year-over-year growth of just 1% this quarter, according to a Jefferies note citing market research data from Counterpoint. This includes the fact that iPhone 16 deliveries began two days earlier than last year.
Overall, global smartphone sales increased just 2% in the quarter, slowing from 6% growth in the second quarter of this year. Jefferies said it expects the overall downward pressure on smartphone shipments and sales to continue through the end of this year, coupled with rising AI-related hardware costs.
Analysts initially touted: growth opportunity and, Upgrade “Supercycle” In the case of Apple, recent research shows that a minority of consumers Buy a new iPhone for new features. Most people choose to upgrade only when their smartphone gets old, stolen or damaged.
The company also hoped that Apple Intelligence would help increase sales. reported sales of Approximately $86 billion in this quarter As of June 29, sales were up 5% from a year ago, exceeding Wall Street expectations. However, the company continues to Facing increasing competition in Chinaincluding homemade ones Smartphone manufacturer Huaweicontinues to be a drag on sales.
Apple is scheduled to announce its financial results on October 31st.
