Why AirPods may be pivotal to Apple's AI push

The iPhone 7's AirPods wireless headphones have divided analyst opinion: Is the W1 chipset – Apple's first-ever wireless chip – a game changer or does it lack originality? "The new AirPods are a wholly new product," says Paul Erickson, IHS Markit Senior Analyst for the Connected Home, citing the W1 chipset and its groundbreaking functionality. The AirPods' W1 chipset is important, because it enables Apple to move iOS-based accessory purchases from third parties and industry standards to Apple's product families. But the larger importance of the AirPods could be in how they help accelerate Apple's artificial intelligence (AI) push. "With respect to Apple's push into AI, I think their strategy is part of a larger industry shift towards ubiquitous computing," says IHS Principal Analyst for wireless communications, Wayne Lam.