The OpenAI – Apple Partnership Should Prompt Microsoft’s Return Of The Windows Phone

Artificial Intelligence has come to stay and will continue to shape our lives for a long time to come. Like every invention from the smartphone to virtual reality, there are those that are big players. Microsoft is no doubt one of the big AI players with billions of dollars in investments and partnerships across the AI landscape. Microsoft reportedly has invested up to $10b in OpenAI till date and was ready to step in to save CEO Altman when the need arose last year. But Microsoft has its own assistant, Copilot and while it has been touted as a game changer, this poll conducted by Windows Central says otherwise. More than half the people polled say they never used Copilot which may back up speculations that Microsoft could be preparing to throw the service in our faces in coming Windows updates by making it some kind of pop-up that you can opt out of at any time. 

Like AI, Microsoft has struggled in the search engine area with its Bing search engine but has made large inroads in the cloud space with Azure reporting impressive earning year on year. 

Microsoft is now the biggest company in the world by market cap with a valuation of over 3 trillion as of this morning with Apple and Nvidia chasing closely behind. Then came the announcement last week that a company that Microsoft invested billions of dollars in is now looking to partner with perhaps their biggest rival, Apple. Even though there is little out there about this partnership, it looks like ChatGPT could be coming to iOS 18 soon and that underscores the importance of using AI on the go on mobile. Mobile has always and will always be with us and that’s an area Microsoft may have made one of the biggest mistakes ever. 

You see Microsoft bought the mobile business of Nokia in 2014 for about $7b even though the deal was first announced in 2013. They went ahead to launch mobile phones powered by Windows and then the world saw competition in the mobile sector with the likes of BlackBerry, Samsung, Apple and Microsoft fighting for dominance. They even adopted the strategy that has made Chinese phone brands to succeed in Africa and Asia which was to make cheaper versions of these phones available. Lumia was somewhat a hit on the African continent and then came the sad news in 2017 that due to falling sales, the Windows phone will be discontinued. Microsoft decided to focus more on its cloud and enterprise offerings thereby allowing Google’s Android and Apple’s iOS to expand their dominance unchecked. 

But in retrospect and in light of the giant strides that AI is making across the world, it looks like mobile + AI is the future that Microsoft will miss out on. Last year, CEO Satya Nadella said killing of the Windows phone may have been a strategic mistake they regret but didn’t say if there were plans to bring it back. 

The mobile partnership between Apple and OpenAI could be big and could see Apple take back the top spot of the most valuable company because of what such a partnership could birth and Microsoft is right to be worried even though there is little they can do to stop it at this point. OpenAI rivals like Anthropic are rising fast and a partnership with a phone giant like Apple could very well cement their dominance. 

Think about what a ChatGPT – iOS 18 partnership could look like; 

1. Enhanced Siri Functionality

• Contextual Conversations: Siri could leverage ChatGPT for more natural and context-aware conversations, understanding follow-up questions without losing context.
• Complex Query Handling: Improved ability to handle and process complex user queries, offering more detailed and accurate responses.

2. Advanced Predictive Text and Typing Assistance

• Smart Autocomplete: ChatGPT could enhance predictive text, making typing faster and more accurate by suggesting entire phrases and sentences based on context.
• Grammar and Style Suggestions: Real-time suggestions for grammar corrections and style improvements while typing in any app.

3. Personal Assistant Features

• Personalized Recommendations: Tailored suggestions for apps, content, and settings adjustments based on user behaviour and preferences.
• Task Automation: Enhanced automation capabilities, allowing users to create more complex shortcuts and routines with natural language instructions.

4. Improved Accessibility

• Voice Command Extensions: More advanced and accurate voice command recognition for users with disabilities, making device navigation easier.
• Text-to-Speech Enhancements: More natural and expressive text-to-speech voices for better accessibility.

5. In-App Assistance

• Embedded Chatbots: Integration of ChatGPT into various apps, providing real-time assistance, troubleshooting, and user guidance within the app.
• Learning and Education: Interactive learning experiences within educational apps, offering explanations, tutoring, and personalized learning paths.

6. Enhanced Search Capabilities

• Smart Search: More intelligent search within the device, capable of understanding natural language queries and providing precise results.
• Unified Search Experience: Integrating web and on-device search for a more seamless and comprehensive search experience.

7. Privacy-Focused AI

• On-Device Processing: Ensuring that as much data processing as possible happens on the device to maintain user privacy.
• Data Minimization: Using AI to provide personalized experiences without extensive data collection.

8. Advanced Augmented Reality (AR) Interactions

• Context-Aware AR: Using ChatGPT to interpret user intent and provide contextual information and interactions in AR applications.
• Interactive AR Assistants: Virtual assistants in AR environments that can answer questions and provide guidance based on real-time visual context.

9. Enhanced Messaging Features

• Smart Replies: More nuanced and contextually appropriate suggested replies in messaging apps.
• Automated Summaries: Summarization of long messages or email threads for quick understanding.

10. Content Creation and Management

• Creative Writing Assistance: Helping users with writing tasks, from drafting emails to creating social media posts and even longer documents.
• Media Management: Intelligent organization and tagging of photos, videos, and other media based on content and context.

11. Integration with Health and Fitness Apps

• Personalized Coaching: Offering advice and motivation based on health data and user goals.
• Mental Health Support: Providing conversational support and resources for mental well-being.

12. Enhanced Customer Support

• 24/7 Support: Built-in support for troubleshooting and getting help with device features and settings through conversational AI.

13. Multilingual Capabilities

• Real-Time Translation: Offering real-time translation within apps and across the OS, making it easier for users to communicate in different languages.

In other words, the partnership could make a smart iPhone even smarter. 

Microsoft has a big choice even though it could be hard and that is bringing back the Windows phone and I advise it because there will be more AI – smartphone maker partnerships ahead. We haven’t heard the last of it for sure.