Apple Intelligence, unusually for a major Apple project, is not a product in the sense that it won’t come in an $899 box. It’s a feature, which means its success or failure will depend not just on its intrinsic qualities, but also on how Apple packages and sells it.
The most obvious way to monetize Apple’s intelligence is to use it as a differentiator for premium hardware. After all, it requires a ton of processing power. As we explain in our FAQ , the only current iPhones that can run Apple’s intelligence will be the iPhone 15 Pro and 15 Pro Max powered by the A17 Pro. (The 16-series iPhones launching in the fall of this year will also support it, of course.) So AI could help persuade customers to upgrade to new premium phones.
In the long run, however, Apple Intelligence needs to address the general public. Not because it means more revenue, but because it means more dataAI models need training data to evolve, and Apple needs its models to become as accurate and useful as possible in order to catch up and compete with established systems like ChatGPT. Ideally, Apple Intelligence would be on every iPhone, iPad, and Mac in the world, happily absorbing information about how humans use language and imagery to express their thoughts.
With that in mind, the optimal vehicle for Apple’s AI system may not be the iPhone 16 Pro, even if the company wants to sell units of that device. It could well be the 4th-generation iPhone SE, which is expected to launch six months later, in spring 2025.
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For one thing, despite their perception as budget-friendly compromises, Apple’s SE phones have always been well-equipped when it comes to processing power. All three generations of the SE have been equipped with what was at the time Apple’s latest phone processor, matching the flagship iPhone released the previous fall. If it’s the same A18 chip expected in the iPhone 17, running Apple Intelligence shouldn’t be a problem.
Second, the next SE seems like a considerably more attractive prospect than its maligned predecessor, even before we add AI into the equation. We’ve already heard it’ll have an OLED display and Face ID, and the latest rumors suggest it could be based on the iPhone 16’s chassis, meaning its exterior will be just as cutting-edge as its interior. There will be compromises, of course: the camera system, for example, won’t be on par with the 16 Pro or even the regular 16. However, iPhone cameras have long been far better than they should be, and the SE 4 should still have the photography chops to handle almost any situation, including spatial video for the Vision Pro.
Indeed, from both the user and manufacturer perspective, this seems like the perfect solution. Apple can leverage exclusivity to sell a lot of high-end phones this fall, and then leverage inclusivity to harvest more data next spring. Customers can jump on the AI train right away if they want (and can afford to), or wait six months for a more cost-effective entry point. Everyone seems to win.
The important thing for an AI device is that it’s present and easily accessible. I maintain that the best choice would be an Apple Watch, but that’s not going to happen anytime soon. The next most ubiquitous device is the smartwatch, and with an attractive mix of value and features and strong sales figures, the iPhone SE 4 might be Apple users’ best chance to experience the company’s advances in AI firsthand.