Apple's intelligent advancements will undoubtedly propel the iPhone into a "supercycle," but now is not the opportune moment.

Apple is about to release its earnings report for the important holiday quarter, and many observers are hoping to see a significant impact from artificial intelligence on iPhone sales. Here's why that won't happen right now, but it will definitely be realized in the near future.

iPhone 16 Performs Well, But AI's Major Impact Still Lies Ahead

After Apple first introduced its AI feature suite last June, analysts began predicting a supercycle for the iPhone.

They were operating on the basic expectation that AI would greatly boost iPhone demand and encourage users to upgrade their devices sooner than usual.

When Apple last released its earnings report, the iPhone 16 series had just launched, and the first batch of Apple Intelligence features were not yet available.

As a result, sales of the new iPhone were in line with expectations. While there was a 5% growth, it wasn't a dramatic surge like a "supercycle."

This week's earnings report will offer a clearer picture of the potential impact of AI on the company.

Although Apple is generally expected to post strong results this quarter, the consensus is that iPhone sales are solid but not particularly outstanding.

To be fair, the success of the iPhone itself is extraordinary. No other product in Apple's very profitable portfolio comes close to matching the iPhone's sales figures.

But stellar iPhone sales performance isn't uncommon. For Wall Street, growth is paramount, and the major impact of large-scale AI seems to have yet to arrive.

Don't worry, because this iPhone supercycle is coming—it may just be arriving a bit later than anticipated.

Hardware Upgrades Pave the Way for Apple's Upcoming Powerful AI Features

Apple Intelligence is a software feature set, but it relies entirely on Apple building powerful hardware.

We're already seeing the influence of AI on Apple's hardware choices:

• The entire iPhone 16 lineup has upgraded to 8GB of RAM, a specification previously limited to Pro models; even the upcoming iPhone SE 4 will feature an AI-capable chip and 8GB of RAM.
• Apple recently bumped up the base memory for all new Macs to 16GB. Without other factors, this would be highly unlikely.
• Over the next few months, every iPad model will get a modern chip with AI support—even the entry-level ones.

Rumors also suggest that Apple is about to unveil some substantial hardware advancements.

Later this year, the iPhone 17 Pro series will feature 12GB of RAM, and all iPhone 17 models will get an improved cooling system. In the A19 chip series, we'll undoubtedly see significant enhancements, especially in the neural engine area.

As someone who has been following Apple closely for a long time, I rarely see such aggressive hardware advancements within such a short period.

But Apple's AI department demands it—not just for current functionality but also for iOS 19, iOS 20, and everything beyond.

Over the next few years, iPhone hardware will see significant upgrades, powering the upcoming AI features.

And this unprecedented hardware and software revolution will make older iPhone models quickly feel outdated.

The Apple Smartphone Supercycle: Summary

Right now, Apple's intelligent features haven't driven a massive wave of iPhone upgrades. Has AI had some impact? Sure, but it's been minimal.

But in the next 2-3 years, I have no doubt that AI will become a huge driver for upgrades. The advantages offered by Apple Intelligence will become increasingly hard to ignore.

The supercycle is still coming. It just takes some time.

Do you think AI will propel the iPhone into a supercycle? Why or why not? Let us know in the comments.

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