Apple’s AI Headaches Could Lead to Lukewarm Revenue Growth


Apple should point out a growing growth of income this week in the middle of hiccups and competition in China.

As a reuters reported Wednesday, January 29, Apple and its competitors Samsung and Google counted on the features of artificial intelligence (AI) to stimulate sales of smartphones. However, Apple’s latest iPhone did not have these features during its beginnings, while certain AI services have not yet made their debut in certain regions.

The report notes that Apple’s AIA problems were highlighted earlier this month when the media such as the BBC began to complain that the company’s summary tool was generated The big titles. Apple then deleted the functionality of its operating system.

As part of this update, Apple lit Apple Intelligence by default on iPhones, iPads and Macs. Before that, users with devices that support AI capabilities were invited to activate it during the configuration, a process that involved the software download.

“AI is the innovation of the new technology, the fact that Apple’s handsets are late on capacity is one of the main reasons why their competitive positioning has been weakened and the company has lost market share “Said Jane Hepburne Scott, investment manager at Aegon Asset Management, who owns the actions of the technology giant told Reuters.

Meanwhile, Apple has seen its global smartphones market share reduction to 23% for the 2024 closing quarter due to the pressure of its competitors like Huawei and other manufacturers of Chinese smartphones. This figure was 25% a year earlier, said Reuters, citing IDC data.

These data also show a clearer drop in China – the third Apple market – where the company’s market share has decreased by 10 percentage points, to 17%.

Although the Chinese government has offered subsidies to smartphones buyers to increase domestic consumption, these subsidies aim at mid -level phones that are sold for less than $ 800, excluding high -end iPhones, have Declared Barclays analysts in a note, by Reuters.

Apple has not been able to add AI features to the iPhone 16S in China due to government restrictions which oblige AI generative operators to guarantee authorization before being able to launch a product. This left Apple trying to land partnerships with Chinese companies to deploy its AI functionality.

Meanwhile, Apple has faced obstacles in another large smartphones market, Indonesia prohibiting the iPhone due to content restrictions from this country. Apple had proposed to make an investment of $ 1 billion in local manufacturing, but the Indonesian government said that this was not enough to comply with a regulation requiring 40% of all the contents of the devices. However, this week’s reports suggest that the two parties are about to reach an agreement.

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