Apple Intelligence will undoubtedly drive an iPhone ‘supercycle,’ however not but

Apple is about to report its earnings for the all-important vacation quarter, and lots of onlookers hope to see a giant Apple Intelligence affect on iPhone gross sales. Right here’s why that’s not going to occur now, nevertheless it completely will in due time.

iPhone 16 is doing simply superb, however the main AI affect remains to be to come back

After Apple first launched its set of AI options final June, analysts began predicting that an iPhone supercycle was coming.

Primarily, they anticipated AI to deliver a giant enhance to iPhone demand and inspire system upgrades prior to may in any other case be anticipated.

When Apple final reported its earnings, the iPhone 16 line had simply barely been launched, and the primary Apple Intelligence options weren’t accessible but.

So it was unsurprising that gross sales have been about common for a brand new iPhone launch. There was a 5% enhance, however that’s not precisely ‘supercycle’ ranges of progress.

This week’s earnings will give a significantly better glimpse into any potential AI affect.

And whereas Apple is usually anticipated to report a powerful quarter, consensus factors to iPhone gross sales being stable however nothing extraordinary.

To be truthful, the iPhone’s success itself is extraordinary. Nothing else in Apple’s very worthwhile portfolio comes even near matching iPhone gross sales.

Nevertheless it’s common for the iPhone to do nice. Progress is what issues most to Wall Road, and a giant AI affect appears to be like like it might not arrive but.

Don’t fear although, as a result of that iPhone supercycle is nearly actually coming within the years forward—it might simply be extra extended than anticipated.

{Hardware} upgrades pave the best way for giant Apple Intelligence options forward

Apple Intelligence is a set of software program options, nevertheless it’s fully depending on Apple constructing highly effective {hardware}.

We’ve already began to see the AI affect on Apple’s {hardware} selections:

• the complete iPhone 16 lineup was bumped to 8GB of RAM, a spec previously unique to Professional fashions, and even the upcoming iPhone SE 4 will boast AI-capable chip and RAM
• on the Mac, Apple lately bumped all new Macs to 16 GB of base RAM, which just about actually wouldn’t have occurred in any other case
• within the subsequent few months, Apple’s full iPad lineup will function trendy chips that assist AI—even the price range mannequin

Rumors additionally recommend that Apple has some stable {hardware} developments on the best way.

Later this yr, the iPhone 17 Professional lineup will boast 12GB of RAM, and all iPhone 17 fashions are gaining improved cooling. We’ll undoubtedly see good beneficial properties with the A19 chip sequence too, significantly with the Neural Engine.

As somebody who has adopted Apple carefully for a few years, it’s uncommon to see such aggressive {hardware} developments in such a brief time frame.

However Apple Intelligence calls for it—not only for the present options, but in addition every thing within the works for iOS 19, iOS 20, and past.

Within the subsequent few years, iPhone {hardware} can have superior considerably to energy upcoming AI options.

And the near-unprecedented {hardware} and software program transformations will make pre-AI iPhone fashions really feel dated quick.

Apple Intelligence iPhone supercycle: Wrap-up

Proper now, the present Apple Intelligence options aren’t essentially driving large numbers of iPhone upgrades. Is AI making some affect? Certain, however not a ton.

However within the subsequent 2-3 years, I’ve little question that AI will turn out to be an enormous improve motivator. The benefits provided by Apple Intelligence can be more and more arduous to disclaim.

It’s simply going to take some time for that supercycle to reach.

Do you suppose AI will drive an iPhone supercycle? Why or why not? Tell us within the feedback.

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