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Image created using DALL·E 3 with this prompt: Create an image: an LLM / AI built into an iPhone, helping its user unlock the full powers of generative AI. Aspect ratio: 16:9.

As you know, Apple (AAPL) has been very quiet about its AI plans, but a new paper entitled “LLM in a Flash” may shed some light on how our friends from Cupertino are thinking.

Unlike Microsoft and Google, who have focused on cloud-based AI services, Apple’s initiative, unsurprisingly, is to embed advanced AI directly into its smartphones. As one can imagine, an LLM in your pocket might be a good strategy to reverse the recent decline in smartphone sales.

Running AI models locally on devices promises faster response times and offline functionality, and it might also address key privacy and security concerns.

The industry is responding to this shift. Qualcomm’s CEO Cristiano Amon suggests that AI integration in smartphones could create a new user experience and potentially revive the smartphone market. Forecasts indicate more than 100 million AI-focused smartphones could be shipped in 2024.

The only question is when. Will we see a Siri front end to an LLM in the next iPhone? Will it be part of iOS 18? Time will tell.

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