Report: Apple's Device Longevity Makes AI More Important
How is Apple compensating for slower hardware upgrade rates?
Apple is focusing on enticing customers with software and artificial intelligence (AI) offerings, as well as relying more on service fees and subscriptions to fuel sales. With the introduction of Apple Intelligence, customers will need to buy new devices to access these AI features, potentially driving upgrades2. Additionally, AI-driven shopping experiences and business interactions may increase reliance on AI for daily activities and decision-making, shifting consumer expectations toward more automated and intuitive services.
How are Apple's longer-lasting devices affecting sales?
Apple's longer-lasting devices have led to a decline in sales as customers do not feel the need to upgrade as often. This durability has made Apple a less reliable source of growth. The company is now focusing on enticing customers with software and artificial intelligence, as well as depending more on service fees and subscriptions to fuel sales.
What role does AI play in Apple's strategy according to Bloomberg?
According to Bloomberg, AI plays a crucial role in Apple's strategy as the company aims to entice customers with software and artificial intelligence amid declining hardware sales. Apple's durable devices lead to less frequent upgrades, so the company is focusing on AI-driven features and services to fuel growth and maintain its market position.