Apple (NASDAQ: AAPL) unveiled its long-awaited AI strategy alongside the iPhone Duo at its annual product event in Cupertino, generating significant industry attention heading into the fall cycle.
Yahoo Finance Technology Editor Dan Howley attended the event in person and reported that Apple largely succeeded in demonstrating how artificial intelligence will be integrated across its range of devices and services.
Howley described practical use cases for the new Siri AI, including the ability to surface relevant information from texts and emails in response to natural language questions from users.
During his time in Cupertino, Howley personally tested the new Siri AI on a beta build, noting that while calling his hotel, the system automatically surfaced his confirmation code on screen before he was asked for it.
Apple also showcased AI capabilities across its Mac lineup, with Howley reporting he saw an array of four Mac Studios configured to run a one trillion parameter model requiring close to one terabyte of memory.
The Apple Watch received AI-powered health features including a listening mode that generates a general summary of conversations throughout the day, with Apple stating it does not record or store raw audio files and provides no speaker attributions.
Despite the broad AI showcase, Howley said he does not believe the software features will be the primary driver of iPhone sales, arguing that consumers upgrade based on hardware appeal rather than AI capabilities.
“They’re going to say, gosh, I can’t wait to get my hands on the new foldable iPhone or the new 18 Pro because they’re good hardware devices and that’s generally why people upgrade, not necessarily the software,” Howley said.
An analyst at IDC and contacts at Counterpoint Research both backed that view, noting that Apple had significantly less AI functionality than Samsung and Google for some time without any meaningful negative impact on iPhone sales figures.
New iPhone pricing rose by approximately $100 across the lineup, though Howley suggested this is unlikely to materially dent demand given that most consumers purchase devices through carrier payment plans rather than paying the full retail price upfront.
Howley also flagged broader pricing trends across the technology sector, noting that PC sales are down while prices are higher, and that memory companies have indicated supply constraints could persist anywhere between 2027 and 2030 or potentially beyond.
He said he expects further price increases across the wider technology industry in the near term, as manufacturers continue to navigate ongoing cost pressures throughout their supply chains.
