“Morgan Stanley analyst Erik Woodring has predicted that 2025 could see a potential 15% increase in Apple’s iPhone shipments, highlighting the year as one in which Apple’s ‘Edge AI’ could come to fruition and power a new crop of iPhones with enhanced AI capabilities. Woodring has suggested that an iPhone 16 with advanced AI features could significantly improve the iPhone franchise.
Apple’s iPhone sales, particularly for the current iPhone 15, are expected to see a decline in 2024, with Wall Street predicting that a lack of interesting new hardware features could result in a diminished user base. However, Woodring’s predictions suggest that if Apple incorporates AI software features such as ‘Large Language Models’ (LLM), there is the potential for a significant increase in iPhone shipments.
To enable AI capabilities in the iPhone 16, Apple would need to rely on large language models such as OpenAI’s GPT-4. However, the challenge lies in minimizing cloud reliance and enhancing the capacity of the device to run LLM processing locally.
Woodring has based his optimistic outlook on a recent paper published by Apple researchers, which outlines how LLMs can be efficiently implemented on the iPhone, enhancing the processing speed and memory capabilities through flash memory.
Despite the optimistic outlook, there are still potential hurdles for implementing LLM-enabled AI features in the iPhone 16. Notably, the research was conducted on a Mac rather than a mobile device, and the potential impact on battery life and thermal limitations is yet to be fully explored. Nevertheless, Apple’s history of incorporating its advanced M-series chips into mobile devices indicates that there is a strong possibility of bringing AI features to the iPhone.
Overall, the research conducted by Apple’s team signals a potential shift towards more powerful AI capabilities in mobile devices in the near future.”
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