Apple's new iPhone 16 series hit the market on the 20th, finally featuring the much-anticipated Apple Intelligence. However, telecommunications industry personnel and supply chain sources are divided on whether Generative AI (GenAI) will boost sales for the iPhone 16 generation.
Supply chain sources have remained cautious when observing the new iPhone's sales. Despite the trend shifting from AI PCs to AI mobile phones this year, Apple's inability to fully implement its AI capabilities in one step has created uncertainty regarding the release momentum.
A telecommunications industry insider's analysis of the initial presale wave revealed that although the iPhone 16 features a more powerful processor at the same price point as its predecessor, the Pro Max model was still the first to sell out. This suggests that cost-effectiveness does not necessarily dictate consumer purchasing decisions or preferences.
In contrast to the supply chain's reserved outlook, telecommunications industry personnel have a different perspective. Chunghwa Telecom held a launch event on the 20th, where Chairman Shui-yi Kuo expressed optimism about the sales momentum of the new iPhone 16 series. In a post-event interview, Kuo stated that sales could potentially surpass those of the iPhone 15 in 2023, marking the largest phone replacement wave since the introduction of 5G.
GenAI is considered the primary catalyst for this replacement trend. Rong-shy Lin, senior executive vice president of business at Chunghwa Telecom, identified three key factors driving GenAI's strong influence.
Firstly, the shift from expert systems to inclusive AI will enable natural language activation, significantly lowering the barrier to AI usage. Secondly, while GenAI's primary selling point is text applications, ongoing development in multimodal integration, including image generation and audio processing, is creating more opportunities for innovation.
The maturation of 5G technology, now in its fourth year since release, has also contributed to this trend. With both software and hardware requirements now met, the timing is ideal for introducing AI capabilities.
Kuo noted that while early adopters will primarily consist of Apple enthusiasts, the future expansion of AI language support will directly benefit third-party application developers. This will not only showcase more innovative multimodal AI applications but also accelerate overall app development.
Looking ahead, the robust support from the App Store coupled with AI-integrated smartphones could potentially transform daily life, attracting non-Apple users and triggering another wave of phone replacements. This suggests that not only the iPhone 16 but also future mobile phone releases will benefit from this trend. In conclusion, while the impact of AI on overall iPhone sales is undoubtedly positive, its long-term effects are expected to be the main driver of future growth.
