Can Apple catch up in Generative AI in time for WWDC 2024?

WWDC is just weeks away, Apple needs to show its serious about Generative AI product innovation.

Hey Everyone,

At AI Supremacy on occasion, I ask some big questions about the future of AI.

I wanted to give you all a quick update on Apple’s status in Generative AI in early 2024.

Apple’s WWDC event is just weeks away, June 10-14, 2024. Apple is in a major crisis this year and will be counting on on-device Generative AI to boost its hardware and iPhone sales. I expect more AI updates and stunning new features in its WWDC event this year than usual.

It’s worth being excited about if you like me, are fascinating by AI devices and the future of what will be possible.

Apple's on-device AI Needs to Boost Sentiment for iOS 18

Apple's iPhone shipments in China have fallen again, government data show. Apple shipped roughly 2.4 million smartphones in February — a 33% drop from 2023, per Bloomberg. Apple’s stock is down 9% so far in 2024 and for Apple that’s a lot. Apple’s market cap only stands at $2.61 Billion now. I say only because it was the most valuable company in the world until relatively recently.

Apple will Likely Partner Heavily with Gemini and OpenAI

Apple is reportedly exploring a partnership with Google for Gemini-powered features and perhaps also OpenAI tech on iPhones. Apple GPT is the long-rumored AI chatbot from Apple that one day may arrive on all Apple devices. Meanwhile Apple's overall revenue and earnings per share are projected to drop year-over-year for the first time since 2016, and it’s scrambling to improve Siri and add more on-device AI capabilities to its lineup.

Apple Needs to catch up with BigTech in AI

As Microsoft, Meta, Amazon and Google invest in Generative AI to a marked degree, Apple has a lot of catching up to do to integrate it into their devices, but a few papers they have released show some good results. Apple's AI chief John Giannandrea is leading development on large language models within Apple.

Apple devices and features like Siri, Apple Maps, search, and even the mixed-reality headset Vision Pro have benefitted from the gradual introduction of machine learning and artificial intelligence. Apple needs to really impress at WWDC 24.

Apple is Overly reliant on iPhone Sales

Apple still makes well over 50% of its total revenue just from iPhones sales. The latest info shows the iPhone is Apple's biggest moneymaker, generating $69.7 billion of revenue in the latest fiscal quarter (Q1 2024 ended Dec. 30), or 58% of the company's total. Thus Apple needs to show major improvements in on-device Generative AI capabilities in its product features.

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Can iPhone Sales Rebound in China with iOS 18?

When Counterpoint Research, in its report released in early March, estimated that iPhone sales in China had dropped by 24% in the first six weeks of the year it’s clear Apple will become under pressure in China, where the U.S. is considering even tougher sanctions against Huawei. China pushing Huawei’s efforts also has led to a rejuvenation of its brand as a symbol of Chinese nationalism. Huawei’s net profit for 2023 rose by 144.5% to 87bn yuan, with the margin more than doubling on a year earlier to more than 12%.

Apple’s Great Pivot to Generative AI in Late 2023

Apple abandoning Project Titan its smart car EV effort also proves that Apple knows where it needs to improve, pivot and invest more of its significant cash pile. As of November, 2023 Apple had a staggering $162.1 billion in cash on hand. Apple CEO Tim Cook said his company “investing significantly” in artificial intelligence in late February but we’ll only find out more in June and Apple must be scrambling to catch up to BigTech in this crucial domain.

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