Apple doesn’t need cutting-edge AI to sell iPhones, as users are now “addicted” to its ecosystem—a model that makes it the most valuable company in the world.
Apple is gradually becoming a “utility,” and that’s hard for its die-hard fans to accept—though that’s not necessarily bad. The iPhone has become the go-to tool for accessing the internet and getting around. Most users don’t care about cutting-edge AI or fast processors—as long as their device runs smoothly.
Recently, Apple fans have been concerned about the company’s decision to delay new AI features, while analysts predict declining iPhone sales. However, this only interests a small percentage of users—Apple bloggers and those who always want the latest iPhone. The rest of the users don’t care much. They only need a battery that lasts all day, functional apps, reliable messaging, and a working camera. And all of this can be done with any iPhone—without AI.
The iPhone is a “utility”
Like electricity or water, the iPhone is something we take for granted until there’s a problem.
Typically, the problem is:
✔ Battery life
✔ An iOS update that makes older models incompatible
✔ Physical damage or theft
These issues drive the iPhone upgrade cycle, not some innovative AI feature.
According to analyst Dan Ives (Wedbush Securities): “300 million iPhones haven’t been upgraded in over four years. That means there’s a huge pent-up demand.”
This is now the main reason iPhone sales are booming: not the technology but the need to replace older models.
Apple Outpaces Competition Without Innovating
Dan Morgan (Synovus) data shows iPhone sales have stagnated over the past decade.
That might be alarming, but:
✔ Apple’s stock has increased sevenfold in 10 years
✔ The company remains the most valuable in the world
During that time, Siri has remained essentially… useless. But has that affected iPhone sales? Not at all.
Why Warren Buffett now loves Apple (and “boring” companies)
Warren Buffett, one of the largest utilities investors, is also one of Apple’s largest shareholders. In his latest letter to Berkshire Hathaway shareholders, he mentioned Apple alongside Coca-Cola and American Express. He’s not interested in Apple’s technological advancements—and he made that clear in 2018: “The idea of trying to guess how many iPhone Xs will be sold in a quarter is completely pointless.”
The reason he loves Apple is simple:
✔ Consumers need its products
✔ It generates consistent, high profits
The iPhone is now as essential as electricity
Like electricity and water, the iPhone has become a staple of modern life.
Real-life examples:
✔ When his wife’s iPhone was stolen, she immediately bought a new one so she wouldn’t lose access to her data
✔His daughter broke hers and had to replace it to access her studies.
✔His iPhone SE had battery issues, so he bought a new iPhone 16e instead of fixing it. Neither of them thought about switching to Android.
A survey by Consumer Intelligence Research Partners (2023) found that:
✔ Only 4% of Android users had switched from iPhones
✔ Most are afraid of the transition to Android
The iPhone doesn’t need AI to sell
The question isn’t when Apple will bring AI to the iPhone but when it will stop supporting older devices. When it does, millions of users will be forced to upgrade. If Apple were an actual utility, there would be regulatory restrictions on its prices. Instead, Apple charges whatever it wants, as demonstrated by the iPhone 16e, which costs $170 more than the SE—a 40% increase.
low expectations and social marketing
if you expect your tools to just do their job properly you’ll never touch any of Apple products, they’re always broken in more than one way, making them ineffective in serving you