apple (NASDAQ:AAPL) has made many comments, acquisitions, hires, and investments related to building artificial intelligence, but has yet to reveal any new AI products.
While many are expecting great announcements at Apple’s Worldwide Developers Conference in June, analysts at the European Developers Conference say: Bernstein Société Générale expects Apple to wait until September, when the iPhone 16 launches.
“We expect most AI features to be announced on iPhone in September rather than at WWDC. This is in line with other major software features such as Dynamic Island, Siri, and Facetime, which were all introduced at the phone’s launch.” ,” he said. Bernstein’s Toni Sacconaghi and Daniel Zhu wrote the memo on Thursday. “We believe the timeline for his AI features, such as multimodal Siri and AI wellness coach, is not as clear.”
Bernstein expects the iPhone 16 to offer at least similar AI capabilities to the Pixel 8 and Galaxy 24. Other possibilities for AI integration include Apple Music, Xcode, Pages, and Keynote.
“Apple is developing its own LLM, codenamed Ajax, but the company is also in talks with potential partners such as Google (GOOG) (GOOGL), OpenAI, and Baidu about using external LLMs,” Bernstein said. he points out.
Bernstein also points out three main ways Apple can monetize AI. These include his AI-enabled features on the iconic iPhone, the ability to capture his AI searches through ads, the ability to charge take rates on AI apps, and more.
Overall, Bernstein rates Apple a Market Perform and sets a price target of $195.
Apple is 13% drop year to date.
Apple is rated a “hold” by Seeking Alpha analysts, but a “buy” by Wall Street analysts. Seeking Alpha’s Quant System consistently outperforms the market and is rated Hold.
