Apple CEO Tim Cook appears unfazed by concerns that advancements in AI could topple the iPhone’s dominance.
During Thursday’s earnings call, Wamsi Moen, an analyst with Bank of America, asked Cook directly how Apple is preparing for a world where dependence on screen-based devices “significantly diminishes,” thanks to advances in AI.
Cook didn’t seem to see an imminent threat to Apple’s hero product.
“When you when you think about all the things an iPhone can do, from connecting people to bringing app and game experiences to life, to taking photos and videos, to helping users explore the world and conduct their financial lives and pay for things and so much more, you know, it’s difficult to see a world where iPhone’s not living in it,” Cook said.
“And that doesn’t mean that we are not thinking about other things as well,” Cook added, “but I think that the devices are likely to be complementary devices, not substitution.”
While Cook didn’t appear worried about advances in AI disrupting the tech giant’s business, Apple has been slow to release new Apple Intelligence features, leaving analysts with mixed opinions about its competitive edge.
EMARKETER analyst Jacob Bourne told Business Insider that, “while the AI arms race may pressure Apple toward bolder moves, including potential acquisitions, its disciplined approach to product quality over speed should help it maintain a competitive advantage in the premium market over the long haul, provided it makes the necessary R&D investments in AI.”
Wedbush analyst Dan Ives said in a research note after the call that the company’s revenue beat was “a major step in the right direction,” adding that “now it’s time to address the elephant in the room…the AI strategy, which remains absent while the rest of the tech world is laser focused on the AI Revolution at warp speed.”