How Apple’s AI-enhanced iPhones will Affect Users, Market Position

Newswise — Apple’s introduction of its “Apple Intelligence”-powered iPhone 16 lineup is “long overdue and brings a significant advantage for both the company and its customers,” says marketing science professor P.K. Kannan at the University of Maryland’s Robert H. Smith School of Business.

Generative AI-enhanced camera features for photos and videos (computational photography), he adds, “will undoubtedly be welcomed by users” while boosting the tech giant in terms of it “having lost ground to rivals in the Chinese market due to the absence of these features, which were already standard in competing devices.”

Kannan, the Smith School’s associate dean for strategic initiatives, further assesses the iPhone update and its implications:

Beyond just photography, customers will benefit from AI through a smarter Siri, improved battery management and more personalized, user-friendly experiences. Additionally, these enhanced features will allow Apple to seamlessly support AR/VR experiences, preparing the company for future innovations in this space.like the metaverse.

One of the most important aspects of the update is the iPhone’s privacy-protecting AI capabilities. Apple has long prided itself on safeguarding consumers’ privacy, and the on-device data processing, as Apple claims, ensures that AI functionality is delivered with customers’ data remaining entirely on their devices. This contrasts with some competitors, whose AI solutions may require data to be processed outside their ecosystem. Apple’s AI tools are deeply integrated into its core products through seamless hardware and software integration, enhancing the everyday user experience in a focused, efficient way. 

Finally, unlike competitors like Google, Amazon and Microsoft, which focus on large-scale AI implementations, Apple’s AI initiative is centered on personal, everyday-use products that can resonate with consumers. Here, Apple’s AI capabilities directly touch customers in a personal way, offering significant opportunities for success and market expansion. Currently, AI applications are not centered on everyday consumers, but if Apple can deliver a meaningful AI experience for customers, it will go a long way establishing it firmly in the AI space.