Apple's AI push could reinvigorate iPhone sales as customers look to upgrade

Apple's (AAPL.O), opens new tab developer conference on Monday was about more than infusing its software with the latest artificial intelligence technology, including from ChatGPT.

It was also about selling more iPhones.

Facing choppy consumer spending and resurgent tech rivals, Apple has looked to AI as a way to invigorate its loyal fan base of more than 1 billion customers and to reverse a sales decline for its biggest-selling product.

The software, which requires at least an iPhone 15 Pro or Pro Max to operate, may encourage a cascade of new purchases, several analysts said. Some predicted the biggest upgrade cycle come autumn since Apple's release of the iPhone 12 in 2020, which drew consumers in part through 5G connectivity.

"What we saw today was more compelling than anything we've seen since," analyst Gil Luria of D.A. Davidson said.

Shares of Apple were 3.3% higher at a record in early trading on Tuesday, after closing nearly 2% lower on Monday.

The company showcased what it called Apple Intelligence, its take on generative AI that can conjure text, images and other content on command.

Apple demonstrated how its AI could generate custom emojis, a cartoon to text friends or edits making an email sound more professional. Its digital aide Siri could prompt users if they wanted ChatGPT's help too.

Some analysts voiced skepticism, predicting consumers would not race to Apple stores to get more AI on their phones.

"Perhaps there may be enough in the new and improved Siri-powered, intelligently Apple devices to stanch some of the device revenue that's been hemorrhaging lately, but there isn't enough to create a new band of followers," said Forrester analyst Dipanjan Chatterjee.

Tejas Dessai of Global X added, "Investors clearly want a more comprehensive and ambitious strategy from Apple when it comes to AI." The company's stock fell 2% on the news.

News.Az