Apple’s (AAPL) iPhone hype could be a thing of the past — unless it delivers on AI.
“I would intuitively say that we’re at a point … that I don’t see super cycles as being kind of the dynamic around it,” AT&T (T) CEO John Stankey told Yahoo Finance’s Executive Editor Brian Sozzi at Goldman Sachs’ Communacopia + Technology Conference on Tuesday.
Stankey said without major software advances — especially in artificial intelligence — Apple could struggle to reignite the blockbuster sales cycles that once defined its launches.
“These are now becoming more software-driven devices,” Stankey explained. “Software tends to be incremental. It’s not necessarily built on a hardware platform that’s put out. And as software continues to get better and better, that’s what tends to drive engagement [and] usage.”
Apple CEO Tim Cook holds an iPhone 17 pro and an iPhone air, as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, U.S. September 9, 2025. REUTERS/Manuel Orbegozo · Reuters / Reuters
His comments strike at the heart of a growing investor concern: that Apple is lagging behind rivals in the AI race. Companies like Google (GOOG), Microsoft (MSFT), and Samsung (SSNLF) have spent the past year rolling out AI-powered features across search, devices, and productivity software. While Apple has released its own sweep of features, the company has taken on a more staggered approach.
Some key capabilities — including a more deeply integrated and conversational Siri and Visual Intelligence tools — have yet to be fully rolled out.
For consumers, the stakes are equally high. Without a visible leap forward, the new iPhone 17 risks being seen as a marginal upgrade rather than a must-have device, according to Stankey.
“I would expect that this might be the case and there’ll be some consumers who find a compelling need to go and buy a new device,” he said. “But I don’t think it’s going to be something where people are going to be standing in a line beating down the doors at record levels for that day.”
That’s a sharp contrast with the heyday of the iPhone, when “super cycles” — years with major design overhauls or groundbreaking new features — sent consumers flooding Apple stores and propelled shares to new highs.
Whether the tech giant can come up with applications that make the iPhone indispensable remains to be seen, Stankey added, noting Apple will need its AI to be “unique to other AI tools or devices.”
Apple shares were slightly lower in Tuesday trading. The stock has dropped 4% year to date, compared to the S&P 500’s (^GSPC) 11% gain.
Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at [email protected].
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