According to the article, iPhone sales experienced a decline in 2024 following a limited rollout of Apple’s AI capabilities, dubbed “Apple Intelligence.” The key points are: 1) Apple faced challenges in integrating advanced AI features into its devices due to privacy concerns and computational limitations. 2) The company’s cautious approach to AI integration led to a perceived lack of innovation compared to competitors like Google and Samsung. 3) Consumers expressed disappointment with the limited AI capabilities, leading to a drop in iPhone sales. 4) Analysts suggest Apple may need to reconsider its AI strategy to regain market share and meet consumer expectations for more intelligent devices. 5) The article highlights the delicate balance tech companies must strike between advancing AI capabilities and addressing privacy and ethical concerns.