Apple's new CEO, John Ternus, used his first keynote on Wednesday to firmly reposition the iPhone at the heart of the company's AI strategy, describing it as the ideal "intelligent personal hub" thanks to its processing power, cameras, connectivity and on-device AI. The move marks a departure from predecessor Tim Cook's approach of downplaying Apple's reliance on the iPhone to reassure investors, and directly counters recent commentary suggesting the smartphone's dominance is fading as the company enters a leadership transition.

The strategy echoes one Steve Jobs deployed in 2001, when he championed the Mac as a "digital hub" for emerging devices such as camcorders and digital cameras, dismissing predictions of the PC's decline—less than a year before unveiling the iPod, which went on to reshape Apple's fortunes and pave the way for the iPhone. With the iPhone approaching its 20th anniversary, Ternus faces a similar narrative challenge, and while it remains unclear whether Apple has an iPod-style device in development, he argued the iPhone's blend of power and portability makes it indispensable, giving Apple a strong position as AI-driven wearables from rivals have so far failed to displace it.