Apple To Incorporate GenAI Into iPhones: Report
Discussions are underway with OpenAI and Google, owned by Alphabet, to introduce GenAI features for the iPhone
Tech major Apple is reportedly planning to add generative AI to its iPhones. This move is seen as a strategic effort by the company to boost its declining sales in the Chinese market, which holds significant importance for its overall financial performance, according to a Reuters report on Thursday.
Apple's performance on Wall Street has been lacklustre lately, with its shares falling over 10 per cent this year in comparison to its competitors.
Analysts are projecting a 10.4 per cent decline in iPhone sales for the first quarter of 2024, which is expected to have a significant impact on Apple's revenue. According to the report, this would be the biggest drop in sales that the tech company has experienced in over three years.
Apple executives have previously recognised that the decrease of 10.4 per cent in iPhone sales is being contrasted with the remarkably robust revenue generated by iPhone sales in the corresponding period of the previous year. This upswing in sales was attributed to the emergence of pent-up demand after the pandemic.
At least USD 5 billion of the USD 51.3 billion in iPhone sales from a year ago was essentially due to catching up from disruptions in the December 2022 quarter when Covid lockdowns in China affected iPhone production, as stated by executives.
Despite this adjustment, Wall Street anticipates a slight decrease in iPhone sales and analysts project that Apple's total revenue will decrease by 5 per cent in its fiscal second quarter ending in March. This would mark Apple's most significant revenue decline since the December 2022 quarter, during which revenue dropped by 5.5 per cent.
Apple lost its title as the world's most valuable company to Microsoft earlier this year. Its market value now stands at USD 2.68 trillion due to an 11.24 per cent decline in share price, as per reports.
Meanwhile, weak revenue and falling shares have prompted Apple to enhance its flagship device, which has not seen significant upgrades in years. Discussions are underway with OpenAI and Google, owned by Alphabet, to introduce GenAI features for the iPhone.
These features are anticipated to be revealed at Apple's largest annual developer conference in June, the report added.
