Customers are not switching up their Apple products as frequently because they last longer.
Furthermore, as noted by Bloomberg News on Sunday, June 30, this may increase the significance of the tech giant's artificial intelligence (AI) initiatives.
To be clear, the report stated that Apple is attempting to increase the durability of its products and that its present operating systems may still be used on devices that are seven years old. The article continues, though, by claiming that as sales fall, Apple will become a less dependable source of growth.
According to Mark Gurman of Bloomberg, the corporation has "a rising opportunity to entice clients with software and artificial intelligence," which might help it turn things around.
There will not be many hardware changes when Apple releases the iPhone 16 this autumn, but users who wish to take advantage of Apple Intelligence features will need to purchase a new phone. He contended that this might also encourage owners of Macs and iPads to update.
According to the research, Apple's sales will be boosted more by service fees and subscriptions due to the slowdown in hardware upgrades.
The announcement coincides with Apple's pursuit of alliances to increase its AI capabilities. There were rumors last week that the business had discussed a relationship with Meta; nevertheless, Apple eventually turned down the proposal. It appears that Meta, like other businesses working on generative AI products, wanted to take advantage of Apple's extensive distribution network.
In the meantime, PYMNTS reported earlier this month that Apple may "change how consumers interact with their gadgets and, more crucially, how they shop" as a result of its new AI initiatives.
According to the study, if Apple has its way, iPhones owned by customers will be able to recognize their purchasing habits and anticipate their next purchase. Their social media activity, buying habits, and browser history will all be analyzed by Apple Intelligence.
According to experts, the company also wants to alter how companies communicate with their clients. Apple goods will soon be able to respond to consumer questions, process purchases, and even provide product recommendations thanks to the inclusion of OpenAI's ChatGPT.
"Consumers' reliance on AI for daily tasks and decision-making is expected to rise as they grow acclimated to AI performing more duties. Yi Fang, director of responsible AI at the Santa Clara University School of Engineering and associate professor of computer science and engineering, told PYMNTS that this would cause customers to anticipate more automated and intuitive services.
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