Apple Event 2024: It’s glowtime… that time of the year when the world’s most valuable and influential smartphone ecosystem refreshes itself to show its millions of users a glimpse into the future. While innovation in the smartphone segment itself has peaked to the extent that you can’t really expect any major changes in the iPhone flow, this year will be different with Apple imbibing a host of AI features into the core of its iOS operating system. So even if the iPhone once again registers only incremental changes, the experience of using one of them is expected to change drastically. Interestingly, what is clear from WWDC this year is that Apple’s take on GenAI is much more integrated than what other smartphone companies have tried before. Since the developer conference a few months back, Google has launched its new Pixel phones which too seem to have an integrated approach to GenAI, taking it where the users are than nudging them to a destination that solves their problems. Meta AI also does the same by offering GenAI in the core of its products like WhatsApp and Instagram. Where Apple has an edge over its competitors is in how it integrates seamlessly with all its ecosystem products from AirPods to MacBooks. Cupertino will be expected to weave Apple Intelligence too into this ecosystem, running like a smart central nervous system that helps users get an AI edge in whatever they do, even without an iPhone in their hand. Then there is Siri, the first really smart assistant the world has seen, getting a serious upgrade with GenAI capabilities. Since millions of users are already habituated to asking Siri everything from dialling home to mapping a route, Apple Intelligence could see accelerated adoption via this familiar feature. Once users find value in these new AI features, they will get further hooked and engaged with the ecosystem, finding it hard to switch even when others offer similar features at lower prices. That is the lure of Apple, especially given how seamlessly these new features will be integrated into the ecosystem. This also means more revenue hooks over time and a clear bundling strategy where users who pay more get more. Reiterating this, Le Xuan Chiew, an analyst with Canalys, explained last week: “This strategy not only sets apart the new iPhones but also uses AI to add value, encouraging users to choose Pro models for advanced features. Over time, these AI-driven innovations create new service revenue opportunities by deepening user engagement and expanding Apple's ecosystem.” As per Canalys, from 2020, Apple sold 207.2 million units globally at an average selling price of $788, it has been able to move this selling price up to over $1,039 even while selling more units, 229.1 million in 2023. This number is even more in the first half of 2024 at $1,062. That’s a 25% jump in four years. Don’t be surprised if the prices go up another notch this time too. Is it time to upgrade to iPhone 16? Meanwhile, queries are already pouring in from users in the Apple ecosystem on whether the iPhone 16 series is the one they have been waiting for. This is actually a function of time. If you are on iPhones older than a couple of years, then the chances are you are already yearning for the new features and every year the incremental updates just make it a little worse. Despite your old iPhone being more than capable of handling everything you want to do for at least another year, you feel like you are using a typewriter and want to upgrade every time a new series is announced. Those who can fight this urge have discovered that the iPhone can last well over five years, something Android struggles with. But no one wants to drive home this point. Longer upgrade cycles can’t be good business. Those expecting a big hardware upgrade will again be disappointed if the rumours are true… they tend to be these days. This is not a year where the Pro models will see any significant design change, while the base models are expected to have a vertical camera module, which could also be thinner. Nothing else on the models is expected to make them look different to what iPhones have been in recent times. However, the Pro models will move more towards the professional side adding more features that will woo people using DSLR-like cameras in their workflows. On the other end, what used to be pro features earlier will start trickling down to the iPhone 16 and 16 Pro. The decision on whether this is a good year to upgrade will rest on what features you think will be of use to you this time over. The author is in California on the invite of Apple.
