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Analysts React to Pundit’s Prediction That Apple’s Artificial Intelligence Will Be Bound To iPhone

Apple’s next mobile operating system will take a different approach. While most generative AI services rely on the cloud for their large language models to run, Apple is taking a new approach with its next version, set to be released in June.

Mark Gurman of Bloomberg, in a weekly newsletter published on Sunday, said that AI features for iOS 18 would be implemented on the iPhone, not the cloud.

“As the world awaits Apple’s big AI unveiling on June 10, it looks like the initial wave of features will work entirely on-device,” Gurman wrote in the Q&A section of his Power On newsletter. The company’s large-language model software, which powers the new features, is not cloud-processed.

Gurman announced in February that iOS 18 will be packed with AI features. Apple has trained Siri and iPhone Spotlight on large language models in order to answer complex questions more accurately.

Gurman cited other AI-powered features, including automatically generating playlists and slides for Keynote and integrating AI more deeply into Health, Numbers and Pages.

Enhanced Privacy Approach

Mark N. Vena is the president and principal analyst of SmartTech Research In San Jose, Calif. cited some of the benefits associated with running AI generatively solely on devices. TechNewsWorld reported that “it provides consumers with enhanced security.” “Sensitive Data can be processed local without the need to send it over the internet.”

He continued, “The approach offers faster response time.” Data doesn’t need to be sent to distant servers to be analyzed.

Ross Rubin is the principal analyst for Reticle ResearchA consumer technology advisory company in New York City pointed out an issue with the approach.

According to him, depending on what kind of query is being asked, the performance may be better. However, cloud-based artificial intelligence can accommodate bigger models and therefore, it’s a more powerful solution than many of the devices available today.

Vena added that the AI built into devices allows for offline functionality. This means users can continue to receive service in areas where connectivity is poor or non-existent. “With less dependence on internet, consumers can enjoy AI-powered functions with greater reliability,” he said.

He said that local processing improves the battery life of devices and allows customization and personalization tailored for individual preferences, without relying upon centralized data storage.

AI Could ‘Crater Older iPhones’

Rob Enderle President and principal analyst, The Enderle GroupAccording to, an advisory firm in Bend, Ore, Apple could face a battery-life problem.

He told TechNewsWorld that AI is a power-hungry technology and must be running all the time. “On-device processing requires intimate knowledge of both the AI — so the hardware can be tuned — and hardware technology — NPUs or neural processing units — in order to allow the battery-powered device to have sufficient battery life.”

“This will severely reduce the battery life of an older iPhone and result in poor AI experiences, forcing a new hardware upgrade,” he said.

Tim Bajarin of the President of Creative StrategiesTechNewsWorld spoke with, an advisory firm in San Jose.

He added that “it could force Apple to a new supercycle of refreshes, as most users will want AI apps powered by it as quickly as possible.”

Anshel sag is a senior researcher with Moor Insights & StrategyAccording to, a technology advisor and analyst company based in Austin Texas, the firm agreed. He told TechNewsWorld that there is a possibility it could lead to an upgrade cycle. However, he believes compelling AI use-cases tied to AI hardware capability drive upgrade cycles.

5G Supercycle Recurring?

Will Kerwin, an equity analyst for technology firm, said that some features may be available on more recent iPhone models equipped with neural engines. However, it is likely that the most advanced functionality will come on a brand new device. Morningstar Research Services Chicago

He told TechNewsWorld: “We believe that if Apple is able to deliver AI products for the iPhone in a way that customers are happy, this could lead to a supercycle where people upgrade their iPhones just to take advantage of these new features.” This would be similar with what we saw in the early 5G iPhones.

Kerwin cautioned that, “However, we have no idea what Apple’s AI-based plans are for the iPhone 16 line, and it is too soon to know if this supercycle will happen.”

Vena noted that, while older models might not be as powerful in terms of hardware as the latest models, Apple’s efforts to optimize their devices could still allow AI functions.

He said that older devices may not have the full range AI features or they might not perform as well due to hardware limitations. This could encourage some users to upgrade their iPhones to the latest models in order to take advantage of AI features that perform optimally.

Rubin said that Apple historically allows older devices to be upgraded to the latest OS. This means previous generations will likely have access to most of, if no all of, the AI capabilities. He added that it would not be surprising to see older phones with fewer features and a lower quality of performance.

Apple AI Partner Prospects

Bloomberg’s Gurman also predicts that Apple would likely offer some cloud AI powered features through partnerships with AI providers. In recent weeks, reports suggested that Apple was in talks about generative AI partnerships with Google OpenAI, China’s Baidu, and China-based Google.

Morningstar’s Kerwin argued that Apple could keep its AI off the cloud even with a partnership. He said that Apple, even if it partners with another AI company, could still host a smaller version of the AI on its devices and maintain its focus on security and privacy.

Apple’s relationship with a partner in gen AI will probably be short-lived. Moor’s sag predicts a gradual transition to a completely on-device world once models are optimized, quantized and sized for efficient and quick running on devices. “It is more than likely a matter of a few years.”

Enderle questioned the partnering reports. He said that Apple doesn’t work well with partners, and there will be many execution issues. These include erosion of privacy and security, and also some severe reliability and performance issues.

He added, “I think they’ll have to eventually buy an AI company in order to make this work.”


Apple will host the annual Worldwide Developers Conference online between June 10 and 14, 2024. On the opening day, developers and students can attend a special event in Apple Park.