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AI\u2014no, not artificial intelligence; Apple<\/a> Intelligence\u2122\u2014was the focal point of Apple\u2019s keynote presentation for its annual Worldwide Developers Conference (WWDC) on Monday. The 100-minute program was jam-packed with announcements<\/a>, but Apple Intelligence<\/a> and the company\u2019s long-awaited upgrades to Siri, which has been a laughingstock among virtual assistants for the better part of the past decade-plus, stole the show<\/a>.<\/p>\n The catch? You\u2019ll need the latest Apple devices to actually enjoy Apple Intelligence. And it\u2019s exactly what Tim Cook and Co. have needed to get people interested in new iPhones again.<\/p>\n Interest in the iPhone has been waning. Demand for Apple\u2019s smartphones fell 10% globally<\/a> in the first quarter of 2024, reaching a six-year low<\/a>. But iPhone sales are absolutely critical to Apple\u2019s bottom line, accounting for over 50% of the company\u2019s revenue<\/a> in recent years. Lately, the company has diversified its revenue streams, building out services like Apple TV+ and Apple Fitness+, but between 2015 and 2018, the iPhone was responsible for nearly 70% of Apple\u2019s income. It\u2019s been Apple\u2019s single most important product since its debut nearly two decades ago.<\/p>\n Apple\u2019s biggest problem with the iPhone hasn\u2019t been quality\u2014new models regularly get excellent ratings and reviews\u2014but rather giving customers new reasons to upgrade<\/a> every year. One could argue the last major update came with the iPhone 12 in late 2020, which was the first to support the ultrafast 5G network. Since then, though, each phone has come with incremental upgrades and refinements. JPMorgan noted,<\/a> \u201ciPhone spec upgrades are largely minor,\u201d after last September\u2019s iPhone 15 unveiling, for instance.<\/p>\n Apple Intelligence\u2019s exclusivity to the latest iPhones changes that. You can buy last year\u2019s iPhone 15 models, which come with the A17 Pro chip that serves as the floor for supporting Apple Intelligence, or you can buy whatever Apple serves up later this year; the company typically announces new iPhones in September. So even if the hardware doesn\u2019t change much from last year\u2014and that\u2019s likely to be the case, as a thinner redesign is expected for 2025<\/a>\u2014the software will be a compelling reason to upgrade.<\/p>\n In case you missed Monday\u2019s keynote, or just want a quick primer on what Apple Intelligence can do, we\u2019ve broken down the most notable capabilities and experiences here<\/a>. To summarize briefly: It can edit and rewrite your notes and messages, create original images (including emojis of your own design, called Genmojis), prioritize your notifications, and most importantly, understand context so when you make a request, it can look at all of your relevant personal data and take action on your behalf\u2014while all still preserving your privacy, Apple insists.<\/p>\n While you\u2019ll need an iPhone 15 or later to enjoy these new experiences in a smartphone package, you can also buy any Apple device powered by the M1, M2, M3, or M4 chips, which power Apple\u2019s Mac computers and latest iPads.\u00a0<\/p>\n<\/div>\n\nSubscribe to Data Sheet, our daily newsletter about the business of tech. Sign up<\/a> for free.<\/span><\/div>\n<\/div>\n