Since introducing 5G connection with the iPhone 12, Apple hasn’t offered consumers a compelling reason to update their phones for the past four years—a concerning development for the company’s primary line of business. This week, though, things might change. More than half of the company’s revenue came from the iPhone last year, but sales growth has been sluggish as consumers have been taking longer to upgrade to new models.
A lot of device manufacturers are currently dealing with longer upgrade cycles, or the intervals between users purchasing new phones. However, they have been particularly excruciating for Apple as it struggles with additional difficulties like fierce competition in the important China market and a historic antitrust action.
At its annual Worldwide Developer Conference on Monday, Apple is anticipated to unveil new AI features that could turbocharge its products and put it back in the race against the majority of the tech industry that has already advanced AI to a full steam. Additionally, the iPhone is the most significant product for Apple. When Apple releases the iPhone 16 in the autumn, new AI features that offer a strong incentive to upgrade could help the business at a critical juncture.
Now here’s the thing: Whatever happens on Monday, Apple will continue to be a major player in the IT industry for some time to come. The company’s stock (AAPL) is up 9% from the previous year, and its robust services division helps to offset some of the seasonality of hardware sales. Last year, the company made more than $200 billion from iPhone sales alone.
