Apple hardware sales decline for durable devices, Apple Intelligence could boost hardware sales

Apple is expected to introduce a premium service in the form of a subscription to advanced Apple Intelligence features.

Apple hardware sales decline and devices become more durable, Apple Intelligence could drive hardware sales growth

Apple devices last longer, but Apple Intelligence could fuel a consumer supercycle. (Photo credit: Daniel Romero/Unsplash)

New Delhi: Seven-year-old devices get the latest software updates and security features, even if they can’t support all of Apple Intelligence’s features, which Apple calls generative AI capabilities in its devices. Apple Intelligence is currently more about feature announcements than their implementation. Apple Intelligence’s main focus is expected to be on the iPhone 17 line next year, as opposed to the iPhone 16 line expected later in the year. Apple Intelligence’s rollout has an unspecified timeline.

However, Apple Intelligence features will not be available on current devices. For example, iPhone 15 and iPhone 15 Plus will not have Apple Intelligence due to hardware limitations. As users become excited about the possibilities offered by Apple Intelligence, Apple Intelligence could fuel a consumer supercycle as users rush to upgrade their devices. The test of Apple Intelligence will be whether it can boost Apple hardware sales, which have been declining for six quarters, Apple tracker Mark Gruman says in his latest report Power on Bloomberg Newsletter.

Apple Considers Using Apple Intelligence to Generate Revenue

Gruman indicated that Apple will increasingly rely on AI and software to generate revenue as devices are built to last longer. In its Longevity by Design document, Apple outlined the steps it is taking to make its hardware last longer, with new manufacturing technologies, software support, and repair services working together to extend the life of devices. As hardware sales plateau, software and Apple Intelligence will become increasingly important to Apple.

Gruman suggested that Apple could roll out a premium subscription service for all of Apple’s most advanced Intelligence features, branded as Apple Intelligence+. Just as native Siri integration with operating systems boosted sales of the iPhone 4S in 2011, introducing an improved Siri with Apple Intelligence might just boost sales of the iPhone 16 series or next year’s iPhone 17 line.