(APPLE LAUNCHES ITS AI VISION)
June 12, 2024
Hello everyone,
The Worldwide Developers Conference on Monday saw Apple debut its long-awaited artificial intelligence vision. Shares rose as much as 6.4% on Tuesday to a record high, one day after announcing the company’s AI ideas. Apple’s plan is to integrate generative artificial intelligence into every aspect of its ecosystem with the launch of Apple Intelligence.
The event brought positive reviews from many analysts. The company has been thorough in addressing the privacy issue with on-device capabilities. Analysts see Apple’s emphasis on protecting users’ personal data as a “game changer” as it adds to the users’ confidence. As we all know it is not just about the experience of using AI tools that operate in the open market, but it’s also about tools that understand and protect your personal preferences and data. Michael Ng from Goldman Sachs was “encouraged by the financial implications” of the announcements, noting that new product features should help fuel an iPhone upgrade cycle. The updates also create an opportunity for additional AI monetization down the road.
Bernstein’s Toni Sacconaghi expects Apple’s new features to not only power a stronger device upgrade cycle but also push the company to $8 in earnings per share and potentially convince investors to pay close to the stock’s peak valuation.
However, some analysts expressed doubts about Apple’s AI prospects. Barclay’s analyst Tim Long was skeptical about the AI announcements, describing the features as more of an evolution and not very meaningful. Furthermore, Long viewed the event as not significant from a stock standpoint. UBS analyst, David Vogt does not see the Apple AI strategy leading to a significant iPhone upgrade and described the announcement as underwhelming.
Apple Intelligence will be free for users and will be available in beta (trial) version as part of the iOS 18, iPadOS 18 and macOS in September or October in the English language.
The latest operating system also aims to give users more control with tools to manage who can see their apps, how contacts are shared, and how their iPhone connects to accessories.
Users can now lock an app and for additional privacy can hide it too, moving it to a locked, hidden folder. When the app is locked or hidden, content such as messages or emails within the app is hidden from search, notifications, and elsewhere across the system.
The new software will also introduce new accessibility updates including eye tracking, a built-in option for navigating iPhones with only the eyes.
Apple set to launch AI powered Safari 18
This is not a recommendation to buy Apple right now.
Recording of May 31 Monthly Zoom Meeting
https://www.madhedgefundtrader.com/jacquie-munro-meeting-replay-may-2024/
Cheers,
Jacquie
