Apple must show that AI devices are not a failure
Apple Intelligence was introduced on June 10, 2024, during Apple’s Worldwide Developers Conference in Cupertino, California.
Source: Apple Inc.
Apple needs to convince people to upgrade to the latest iPhones and prove to Wall Street that an iPhone upgrade cycle is underway. One way it’s trying to do that is with Apple Intelligence, which the company announced in June. It’s AI that will let customers generate emojis, email messages, notes, and more. It will also use OpenAI’s ChatGPT. But some of those features won’t launch until later this year, and AI devices have been a flop so far.
Apple’s iPhone sales fell 1% year over year to $39.29 billion in the fiscal third quarter, or about 46% of the company’s total revenue. “On a constant currency basis, we grew year over year. And that’s how we look at it from an operational perspective,” Apple CEO Tim Cook told CNBC’s Steve Kovach in June, noting that Apple “moved a lot of people who were working on other things into AI” and that Apple has increased spending on AI and Apple Intelligence.
— Todd Haselton and Steve Kovach
According to Apple analyst Kuo, these are the two most important things to watch out for today
The iPhone 15 Pro is unveiled during the “Wonderlust” event at the company’s headquarters in Cupertino, California, U.S., September 12, 2023. REUTERS/Loren Elliott
Loren Elliott | Reuters
According to Ming-Chi Kuo, a supply chain analyst at Apple, the two main things to watch for on Monday are iPhone price and the availability of Apple Intelligence. The iPhone Pro has had the same $999 starting price in the US since 2017, but the larger iPhone 15 Pro Max has a $100 price increase over the iPhone 14 Pro Max. After all, it has twice the storage. Apple Intelligence is currently in a preview beta, and some of its best improvements, such as a smarter Siri, are expected later this year or next.
There is a “sphere of freedom of expression”
Free speech area in front of Apple headquarters
KIf Leswing | CNBC
On my way in, I noticed this “Free Speech Area” sign. Previous Apple events have sparked protests ranging from the company’s China policy to its handling of child sexual abuse material (CSAM). In June, for example, CSAM protesters showed up at the company’s Worldwide Developer’s Conference. And in December 2022, protesters went on a hunger strike outside Apple Park’s visitor center to speak out against changes that restricted Apple AirDrop in China.
— Kif Leswing
We are on our way to the Steve Jobs Theater, where the iPhone event will take place
Steve Jobs Theatre
Kif Leswing |
We’ve just arrived at Apple’s campus in Cupertino and are walking towards the Steve Jobs Theater, where Apple usually announces new iPhones on its campus, as opposed to events like the Worldwide Developer’s Conference, which are held outdoors. It’s a cloudy day.
Update: It’s no longer cloudy. That’s California weather.
— Kif Leswing
