In the latter part of 2022, the introduction of ChatGPT by OpenAI sparked a surge of fascination with the potentials of artificial intelligence.
In a matter of months, some of the most prominent technology corporations globally, such as Microsoft, Meta, and Google, jumped on board, introducing their own AI chatbots and generative AI tools. By the conclusion of 2023, Nvidia demonstrated that it was the sole company poised to rake in substantial profits by fueling those services.
Fast forward to 2024, a significant focus in AI revolves around our much-loved consumer devices, with technology firms endeavoring to integrate AI into smartphones and laptops.
Earlier this year, Samsung unveiled its AI-powered Galaxy S24 phone. Microsoft, in collaboration with firms like Dell, HP, and Qualcomm, began selling a new range of AI-powered computers over the summer dubbed Copilot+ PCs. Recently, Google introduced its Pixel 9 series of AI-enabled phones.
These novel devices have, to date, failed to impress. Instead of ushering in entirely new experiences, they have unveiled features geared towards enhancing photo editing, interacting with chatbots, or providing real-time captions for videos. Notably, Humane’s AI pin, a detachable gadget released in April, received harsh reviews upon debut. By August, reports indicated that the number of returns per day was surpassing sales.
Apple aims to alter the narrative.
Do customers desire AI gadgets?
Apple usually makes incremental improvements to its iPhones annually. The camera quality sees slight enhancement, processors are faster, and battery life prolongs. None of this is compelling enough to prompt customers to rush for an upgrade every year or two, as was prevalent in the earlier iPhone era when major hardware innovations were routine. This year’s phones are anticipated to undergo similar iterative hardware advancements.
This situation places more pressure on Apple Intelligence to deliver. However, the consumer appetite remains uncertain.
Findings from a recent survey conducted by research firm Canalys revealed that only 7% of consumers exhibited a “very high inclination” to purchase due to AI. Interest is considerably greater in Apple’s two primary revenue-generating markets, the U.S. and China, albeit with a significant discrepancy between them.
In the U.S., 15% of respondents expressed a high or very high propensity to buy gadgets because of AI. Conversely, in China, where consumers typically prioritize tech specifications, that figure stood at 43%. The relatively subdued interest, particularly in the U.S., implies that Apple will need to leverage its marketing prowess to craft a compelling narrative around the benefits AI offers to the average iPhone user.
