AI Focus by Apple and Samsung Misses the Mark for Smartphone Buyers

There is a new race in artificial intelligence: the race to bring AI to your phone. Yes, companies want your smartphone to become even smarter. But do you want it? Do users care? According to Ed Ludlow, co-host of Bloomberg Technology covering tech and innovation from San Francisco, the answer is no, not yet.

“Generative artificial intelligence is cool and all, but it’s not top of mind for most consumers in a smartphone upgrade cycle,” he writes in his latest newsletter, recounting his experience as someone quite skilled and curious with technology, not just because of his work. “At least, AI is not the first thing I’m thinking about as I consider a new phone or computer,” admits the journalist, who just bought an iPhone 15. He was convinced by the new USB-C port, a more universal charging standard, and by the new in-house A17 processor that enables smoother graphics and improved color accuracy. When he entered the phone company store, the argument that completely convinced him to scrap his iPhone 12 was the offer tied to the new Apple phone, with an $800 discount agreed upon returning the old one.

The smartphone industry is expected to recover in 2024, with global shipments growing 4% year-over-year, according to a recent IDC report. This growth will be fueled by phones based on the Android operating system, particularly in emerging markets, where transitions to 5G networks are still a significant factor.

For Apple, the bigger picture isn’t as rosy. IDC models suggest that Cupertino’s company will see only a 0.7% growth on iPhone and iOS this year, with Android outpacing at 4.8% growth. This is partly because Apple had a stronger 2023, with the release of the iPhone 15 model line, and now faces growing competition in China from domestic handset makers as its luxury-item allure wears off. But that suggests that no so many buyers are waiting for the next artificial intelligence-driven device  Apple is launching next week. 

“So what matters when choosing a new phone?” Ludlow asked his contacts on LinkedIn and X in a nonscientific but significant survey, because his bubble is obsessed with technology. And most choose the phone for battery life, camera definition, or everyday practical things. It seems that artificial intelligence must first prove its usefulness and ease of use in everyday life before we all start seeking it in a phone.

https://www.bloomberg.com/news/newsletters/2024-06-03/apple-samsung-lean-on-the-promise-of-ai-to-jolt-smartphone-demand?srnd=technology-vp

Published On: June 6, 2024Categories: News

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There is a new race in artificial intelligence: the race to bring AI to your phone. Yes, companies want your smartphone to become even smarter. But do you want it? Do users care? According to Ed Ludlow, co-host of Bloomberg Technology covering tech and innovation from San Francisco, the answer is no, not yet.

“Generative artificial intelligence is cool and all, but it’s not top of mind for most consumers in a smartphone upgrade cycle,” he writes in his latest newsletter, recounting his experience as someone quite skilled and curious with technology, not just because of his work. “At least, AI is not the first thing I’m thinking about as I consider a new phone or computer,” admits the journalist, who just bought an iPhone 15. He was convinced by the new USB-C port, a more universal charging standard, and by the new in-house A17 processor that enables smoother graphics and improved color accuracy. When he entered the phone company store, the argument that completely convinced him to scrap his iPhone 12 was the offer tied to the new Apple phone, with an $800 discount agreed upon returning the old one.

The smartphone industry is expected to recover in 2024, with global shipments growing 4% year-over-year, according to a recent IDC report. This growth will be fueled by phones based on the Android operating system, particularly in emerging markets, where transitions to 5G networks are still a significant factor.

For Apple, the bigger picture isn’t as rosy. IDC models suggest that Cupertino’s company will see only a 0.7% growth on iPhone and iOS this year, with Android outpacing at 4.8% growth. This is partly because Apple had a stronger 2023, with the release of the iPhone 15 model line, and now faces growing competition in China from domestic handset makers as its luxury-item allure wears off. But that suggests that no so many buyers are waiting for the next artificial intelligence-driven device  Apple is launching next week. 

“So what matters when choosing a new phone?” Ludlow asked his contacts on LinkedIn and X in a nonscientific but significant survey, because his bubble is obsessed with technology. And most choose the phone for battery life, camera definition, or everyday practical things. It seems that artificial intelligence must first prove its usefulness and ease of use in everyday life before we all start seeking it in a phone.

https://www.bloomberg.com/news/newsletters/2024-06-03/apple-samsung-lean-on-the-promise-of-ai-to-jolt-smartphone-demand?srnd=technology-vp

Published On: June 6, 2024Categories: News

Share:

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