Apple gains momentum: AI strategies as the key to success?

Apple's latest quarterly figures highlight the role of Artificial Intelligence (AI) as the technology giant from Cupertino introduces innovative AI features to promote an accelerated device upgrade cycle. Ben Bajarin, CEO of Creative Strategies, discusses on the show "Market Domination" with hosts Julie Hyman and Josh Lipton the challenging balancing act Apple must perform: on one hand, generating excitement around "Apple Intelligence," while on the other hand, avoiding raising unrealistic expectations that could ultimately disappoint users. Bajarin addresses the "unpredictability" that Apple Intelligence represents for Apple and its investors who are trying to understand how this technology could drive an upgrade cycle. A look back at the last few decades of consumer electronics shows that hardware developments have usually been at the forefront. The major challenge is finding a balance and assessing how significantly a software approach can truly fuel a hardware cycle, as there are scarcely any comparable scenarios. Although Bajarin describes Apple Intelligence as the most advanced form of consumer AI at the system level, he emphasizes that Apple must engage the market and make it clear to users why they should use these new features. The analyst also expresses concerns that in some places there are either unrealistically high expectations or none at all, as these technologies may not be the decisive reason for many to purchase a new device. Equipped with unique potential, Apple must simultaneously create mature experiences in this area.