Since Apple’s reveal of Apple Intelligence at WWDC in early June, Wedbush analyst Daniel Ives believes he is seeing optimism “growing throughout the Asia supply chain that this iPhone 16 AI driven upgrade could represent a golden upgrade cycle for Cupertino”, based on the idea that there is huge global pent-up demand.
Oliver Hill for Proactive Investors:
The analysts, who reiterated his ‘outperform’ rating and $275 price target versus the last close just above $226.
“We believe the Street is now starting to slowly recognize that with Apple Intelligence on the doorstep in essence Cupertino will be the gatekeepers of the consumer AI Revolution,” he said.
Other technology stalwarts, possibly including Meta Platforms and Google, are “likely” to need to integrate their AI models/technology into Apple Intelligence in future, Ives said, “as Apple and its golden iOS ecosystem hold the only keys to the castle of 2.2 billion iOS devices worldwide and 1.5 billion iPhones”.
This means the next six to 12 months will see developers build “hundreds” of generative AI-driven apps for the Apple Store, with its technology stack creating the “core building blocks of the consumer AI tidal wave we see coming”, starting with iPhone 16 in mid-September.
Down the line, Wedbush estimates this could result in incremental high margin growth for Apple Services of $10 billion annually, what he calls “the start of new multi-pronged AI revenue stream” based on hardware and software.
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MacDailyNews Take: Bring it on!
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
That caretaker CEO seems to know what he’s doing.
Yup, Cook is great at milking Jobs’ innovations. Never been disputed.
So bizarre. Siri has been a forever absolute idiot, Apple spell check seems checked out and text suggestions often seem related to the person next to me–not my history, or the text at hand. How then and using what logic has AAPL been positioned as the functional AI vanguard for the rest of us?
Wow! “Meta Platforms and Google, are “likely” to need to integrate their AI models/technology into Apple Intelligence in future….” Basing success on the number of iOS devices surely isn’t something to bet AGAINST, but with little historical TECH evidence–and none if Siri figures critically–it’s like Ive’s had already called the score and the game.
I’d sure be happy to see $175/share and believe AAPL can do it, but in light of my day-to-day experience with AAPL tech, the rabbit in the hat comes to mind.
It is bizarre. I’ve spent over half of my adult life and far too much patience on trying to make Siri work for me. It’s now largely limited to asking about the weather, setting reminders/timers and starting workouts since I know it will work ~80% of the time. I’m highly doubtful Apple will flip a switch that suddenly improves all of this and more in any way approaching what we saw in the demos. Maybe they’ll pull it off, but the news about the new Siri not actually being ready until the spring leaves me scratching my head. It looks like WWDC was mostly a marketing maneuver to pump iPhone 16 sales and pacify investors without actually delivering much besides Chat GPT integration over the coming 8-10 months…
I may take Siri more seriously when they can make restaurant reservation calls on your behalf like Google Assistant.