Apple Readies for AI Upgrade with New iPhones
The tech giant has stumbled when it comes to artificial intelligence, but a new batch of iPhones will help it make headway.

To help you understand the trends surrounding AI and other new technologies and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts. (Get a free issue of The Kiplinger Letter or subscribe.) You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
As the smartphone industry battles tariffs and cost-conscious consumers, Apple’s new slate of iPhones figures to be a big hit.
Updated mobile software, computer chips and exterior design add up to the biggest iPhone upgrade in years. The new hardware will even catch the attention of those clinging to old models. “Apple’s 2025 product strategy is simple: Increase upgrade rates and shorten replacement cycles,” writes tech market research firm IDC in a note.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The superslim, $1,000 iPhone Air will win over many fans. The redesign is a precursor to Apple’s future foldable phone, set to launch as early as next year. Other models are the standard iPhone 17 (starting at $800) and the Pro and Pro Max (starting at $1,100 and $1,200). There are reports that early demand is very strong.
Apple has stumbled trying to launch useful artificial intelligence features, lagging competitors, such as Alphabet, Microsoft and Meta, when it comes to AI tools. The refreshed phone lineup sets Apple up for success down the road, with upgraded mobile chips that are specially designed for AI tasks right on the device.
“In designing its own chips, Apple is able to customize its specific devices for performance, power efficiency, and available features,” writes William Kerwin, an analyst at Morningstar, in a research note. “Its A-series chips for the iPhone integrate neural engines for AI capabilities like facial recognition and are optimized for power efficiency to deliver best-in-class battery life.”
Advanced hardware and a massive customer base make the iPhone a go-to device for developers creating AI apps. And as Apple catches up with AI, its deliberative approach could pay off by staying focused on privacy and security, plus everyday AI features that work well for most people.
One AI feature that Apple recently highlighted is real-time language translation with its AirPods earbuds. Apple Intelligence can also describe an image on the iPhone screen or in the camera lens, whether it’s a plant, a piece of clothing, a painting or anything in between.
Look for a big AI upgrade next year, when Apple plans a major revamp of its Siri voice assistant. The company may even partner with Google to use its Gemini AI model.
In the long term, the iPhone is expected to see solid growth in a mature smartphone market. Analysts at Morningstar expect 5% yearly growth for iPhone revenue through 2029. Admittedly, though, that is below the 10-year historical growth rate of 7%.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
- The Explosion of New AI Tools
- AI-Powered Smart Glasses Make a Splash
- 10 Major AI Companies You Should Know
- What Is AI? Artificial Intelligence 101
- The New AI Agents Will Tackle Your To-Do List
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

John Miley is a Senior Associate Editor at The Kiplinger Letter. He mainly covers AI, technology, telecom and education, but will jump on other business topics as needed. In his role, he provides timely forecasts about emerging technologies, business trends and government regulations. He also edits stories for the weekly publication and has written and edited email newsletters.
He holds a BA from Bates College and a master’s degree in magazine journalism from Northwestern University, where he specialized in business reporting. An avid runner and a former decathlete, he has written about fitness and competed in triathlons.
-
Stocks Close September on a High Note: Stock Market Today
A little bit of late risk-on behavior was enough to lift stocks into the green on the last day of September.
-
Turn These Three Retirement Downsides Into Upsides
Not everything about retirement is perfect, but don't let it get you down. Here's how to make lemonade out of these three retirement "lemons."
-
Japan Enters a New Era of Risk and Reform
The Kiplinger Letter Japan has entered a pivotal moment in its economic history, undertaking ambitious policy and structural reforms to escape from decades of stagnation.
-
Are AI Search Results Ghosting Your LinkedIn Posts? This Could Be Why
Posts generated by AI don't hold enough authority with AI search engines to significantly boost your visibility (yes, that's ironic!). Here's what you can do instead.
-
How Consumers Are Tinkering with Cutting-Edge AI
The Kiplinger Letter Companies launching artificial intelligence tools are jostling for consumer attention. Some products are already building a deep connection with users.
-
After Years of Stagnant Growth, Hope Emerges for EU Economy
The Kiplinger Letter Can a German fiscal push outweigh French political peril?
-
Small Businesses Are Racing to Use AI
The Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can Help
Artificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
-
How AI Puts Company Data at Risk
The Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
AI Start-ups Are Rolling in Cash
The Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.