AT&T has a long history with the iPhone. It was the first carrier, known as Cingular Wireless back then, to exclusively sell the original iPhone back in 2007. That exclusivity would run until 2011 when Verizon became the second US carrier to sell the iPhone.
The carrier has sold every single iPhone since 2007 and remains a solid partner for Apple in the US cellular landscape. Yet, even it can’t deny that hype alone won’t get the iPhone anywhere unless Apple gets a grip on AI.
Apple analysts and fans alike have pointed out that the company has not been as quick to capitalize on the mobile AI opportunity as its rivals. Samsung was one of the first to push through with the “AI phone” narrative when it launched the Galaxy S24 series. Its Galaxy AI suite has only gone from strength to strength since then.
Apple Intelligence, which is what Apple calls its suite of AI features, has had a rocky start. The company’s AI-enhanced Siri faces delays, and the company is now having to look towards Google and others like Perplexity to get things back on track.
Following the launch of the new iPhone 17 series, AT&T CEO John Stankey no longer sees “super cycles” beind the dynamic around iPhones any more. By that he’s referring to how fans used to line up outside Apple Stores on launch day to get the iPhone. Those super cycle years brought drastic new tech and major design improvements with every iteration, so customers would line up to be the first to get the new phone.
That’s no longer the case, not just with Apple. While all flagship phones are upgraded every year, the hardware upgrades are minimal at best, as the drastic leaps in technology we’ve seen in the past just aren’t there anymore.
Hence the push to develop more AI and software features to drive consumer interest. Stankey added that “These are now becoming more software-driven devices,” and that as it improves, it “tends to drive engagement and usage.”
It remains to be seen if Apple can come up with AI applications that sustain the iPhone beyond the hype, and that its efforts need to be “unique to other AI tools or devices,” the AT&T CEO explains. He echoes the sentiments of Apple’s customers and investors very well.
Carriers like AT&T make their money on service, not device sales. Apple or Samsung phones sell well and bring in more subscribers. They then stick with the carrier for years, driving upgrades, new contracts, and store traffic.
With hardware upgrades plateauing and customers holding on to their devices for longer, carriers are understandably placing more emphasis on software-driven experiences. That’s where AI makes a real difference, as manufacturers can deliver exciting new experiences to their customers thereby driving upgrades and bringing new subscribers.
This also emphasizes that the pressure is now on Apple not just from its customer base but also from its partners to be a leader, and not a follower, in the AI race. It’s historically been viewed as a trendsetter but it’s clearly having to play catch-up, particularly with Samsung, in mobile AI.
What its fans and partners want to see is not just Apple matching the competition but defining what AI means for mobile on its own terms. As Apple prepares to open up its significantly deep pockets, whether to ink partnerships with Google or acquire the hottest AI startups, the pressure is well and truly on Cupertino to deliver.
There’s a realization that the next cycle of innovation, and the resulting hype, won’t be driven by screen sizes or chipset speeds. It will be based on how seamlessly artificial intelligence can be sown into the very fabric of the device. Compared to Samsung, Apple’s still has a long way to go.
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