On the other hand, a mobile AI device will only become really successful if it can replace the smartphone, and we aren’t anywhere close to that.
Smart phone, laptop, headsets, VR goggles, AI can work with all of these just fine.
I think part of Apple's struggles with AI is they can't find a way to tie it to their hardware in a differentiating way. Since it's so cloud based and there are few compelling use cases for running worse models locally, "AI" works just as well on any device.