Apple is well-positioned with its AI strategy as DeepSeek rocks the tech world, analysts and tech leaders told Fortune.

The AI tech DeepSeek used to train its reasoning model might be just what Apple needs for major Apple Intelligence developments on iPhone.

Apple continues to spend less than its Magnificent 7 peers on artificial intelligence. Recent reports from Chinese start-up DeepSeek have caused investors to positively reassess that strategy American

Apple Intelligence’s first set of features included tools we’re pretty familiar with, like glowing gradients to indicate the presence of AI, the ability to change the tone of an email, and a photo clean-up tool that lets AI eliminate distractions.

Apple has kicked off iOS 18.3, iPadOS 18.3, and MacOS 15.3 with one significant change affecting AI. Since its debut, Apple Intelligence has required the extra step of actually turning it on or opting in. But with the new versions, Apple's AI feature is enabled by default for eliglble devices.

New Apple Intelligence features are coming soon in iOS 18.4, here are seven features and changes to expect in the next big iPhone update.

The company has heavily advertised AI features since the latest iPhones were released in September.

Apple's earnings call is today at 5 pm ET. AAPL stock heads into the report down 4% YTD. Analysts are focused on services and China sales.