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AI iPhones could liven up Apple sales

By shifting its mix of businesses to services, the tech company has kept margins expanding even as sales dip

Until now, Apple chief executive Tim Cook has been rather reluctant to talk about artificial intelligence. During company earnings calls he would only proffer vague statements about thoughtful investment. On Thursday, Cook changed tack. Without being asked, he declared that generative AI was a critical opportunity for the company. The implication is obvious: an iPhone with generative AI capabilities is coming. 

Exactly what this will look like is not clear. OpenAI and Anthropic already offer generative AI chatbots via smartphone apps. Apple could offer a more comprehensive service by embedding a third-party AI assistant in its operating system. Or it may be building its own. 

Dynamic new products would be welcome. In February, the company launched its long-awaited virtual reality headset, Vision Pro. But the device did not contribute enough to the company’s $90.8bn quarterly revenues to ameliorate a 10 per cent drop in iPhone revenue. 

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