Apple’s latest generative AI tool, Apple Intelligence, has yet to drive significant growth in the global smartphone market. Despite predictions of a 6.2% increase in worldwide smartphone sales for 2024, Apple’s iPhone sales have grown by only 0.4%. In contrast, Android devices saw a 7.6% rise during the same period, according to IDC.
Apple Intelligence, introduced alongside the iPhone 16 lineup, has struggled to create the “must-have” appeal necessary to trigger a significant sales boost.
A Mixed Global Performance
While Apple saw record-breaking performance in India, sales in major markets like the U.S., Europe, and especially China, remain challenging. Chinese smartphone manufacturers dominate their local market, leading to a 44.25% drop in foreign smartphone sales in October 2024, as per data from the China Academy of Information and Communications Technology (CAICT).
Apple Intelligence has not yet been launched in China due to regulatory complexities. Meanwhile, IDC predicts that generative AI smartphones, like those equipped with Apple Intelligence, will grow to occupy 70% of the global market by 2028.
Hope for 2025 and Beyond
Looking ahead, Apple’s fortunes could change. IDC forecasts a 3.1% growth in iPhone sales for 2025, outpacing Android’s projected 1.7% increase. This optimism stems from Apple’s potential to refine its AI offerings and better integrate generative AI into its devices.
Apple CEO Tim Cook recently visited China to discuss partnerships with local firms to meet regulatory requirements for introducing Apple Intelligence in the country. Such collaborations could help Apple tap into the massive Chinese market, which remains critical for long-term growth.
Apple’s journey with Apple Intelligence highlights the challenges of innovation in a competitive and regulated global market. While the tool shows promise for enhancing user experience, its slow rollout and lack of immediate appeal have limited its impact on sales. As Apple navigates these hurdles, 2025 may offer a brighter outlook for its AI-driven future.
