On Tuesday (September 10) local time, AT&T CEO John Stankey said that the era of iPhone sales is over unless Apple can make a breakthrough in artificial intelligence (AI). "I intuitively think we've reached a point where ... I no longer see the 'super cycle' being the main driver of it," Stankey said Tuesday at the Goldman Sachs Communacopia+ technology summit.
In iPhone terms, a "supercycle" refers to a period of ultra-high sales as a large number of consumers upgrade simultaneously, driven by a perfect storm of new features, design changes and pent-up demand.
Stankey said that without major software advancements, especially in AI, it may be difficult for Apple to recreate its once-iconic blockbuster sales cycle.
"These devices are now increasingly software-driven," Stankey explained. "Software improvements are often incremental and do not necessarily rely on the launch of a new hardware platform. As software continues to become more and more powerful, this is the key to driving user participation and usage."
Apple held its autumn new product launch conference this week, announcing the iPhone 17 series, AirPods Pro 3 and Apple Watch Series 11 and other products. However, Apple still did not announce any big moves in AI this week.
Since the rise of the AI craze in 2023, Apple has lagged behind other technology companies in the field of AI. Apple was originally scheduled to launch a new version of Siri that integrates AI functions in the first half of this year, but due to poor progress in AI research and development, the company postponed this plan.
As Apple has been unable to achieve outstanding results in the field of AI, Wall Street has begun to question its development prospects. So far this year, Apple's stock price has fallen by more than 9%, far behind other companies in the "Big Seven" and only better than Tesla. At the same time, the S&P 500 index rose 11% for the year.
Compared with Apple, Google has focused on demonstrating AI functions in its latest Pixel series mobile phones.
Stankey said that without a clear leap, the iPhone 17 series may be regarded as a "routine upgrade" rather than a "must-buy" disruptive new product.
"I expect there may be some consumers who feel the need to buy a new device," he said. "But I don't think there will be record queues."
That's in stark contrast to the iPhone's glory days, when "supercycles" - years accompanied by major design changes or disruptive features - sent consumers flocking to Apple stores and drove its stock price to record highs.
Stankey added that it remains to be seen whether Apple can develop the apps that will make the iPhone indispensable. He also pointed out that Apple's AI must be "different from other AI tools or devices."