AT&T CEO: iPhone's Popularity Waning Without AI Breakthroughs

AT&T's chief executive officer recently expressed that the era of the iPhone's popularity may be coming to an end, unless significant breakthroughs in artificial intelligence (AI) are achieved. The executive highlighted that the iPhone's development is no longer driven by the "supercycle" phenomenon, which was once a key factor in its success. The executive noted that modern devices are increasingly driven by software, and the gradual development of software, rather than new hardware, is the key to enhancing user interaction and usage frequency.

The executive's comments address a growing concern among investors: Apple's lag in the AI race. Over the past year, competitors such as Google, Microsoft, and Samsung have rolled out AI-driven features across search, devices, and productivity software. While Apple has also introduced related features, its approach has been more incremental. Key functionalities, including a deeply integrated conversational Siri and visual intelligence tools, are still not fully available.

The executive believes that this situation also has significant implications for consumers. If the iPhone 17 does not achieve a significant breakthrough, it may be seen as a minor upgrade rather than a must-have device. The executive stated, "I think this scenario is quite likely, although some consumers will find sufficient reasons to purchase the new device. However, I do not believe there will be a scenario where people line up on the day of release, rushing to buy and setting a new record for the highest sales."

This contrasts sharply with the iPhone's heyday, when consumers flocked to Apple stores during "supercycle" years, driving the company's stock to new highs. The executive added that it remains to be seen whether Apple can develop applications that make the iPhone indispensable. The executive emphasized that Apple's AI technology must have unique features that set it apart from other AI tools or devices.