Tim Cook's New AI Push To Bring In New Customers For Apple? Analyst Says It 'Isn't Enough'

Benzinga Neuro

June 11, 2024

Apple Inc. (NASDAQ:AAPL) announced a new AI initiative aimed at boosting iPhone sales. However, analysts are doubtful about its impact on consumer behavior,

What Happened: Analysts expressed doubts about whether consumers would rush to upgrade their devices for enhanced AI features, Reuters reported on Monday.

Forrester analyst Dipanjan Chatterjee stated, “Perhaps there may be enough in the new and improved Siri-powered, intelligently Apple devices to stanch some of the device revenue that’s been hemorrhaging lately, but there isn’t enough to create a new band of followers.”

Tejas Dessai of Global X added, “Investors clearly want a more comprehensive and ambitious strategy from Apple when it comes to AI.”

See Also: Apple’s Warranty Updates, iPhone Support Duration, And More: This Week In Apple News

Why It Matters: The skepticism surrounding Apple’s new AI initiative comes despite the company’s recent efforts to integrate advanced AI features across its devices. Apple announced its new artificial intelligence initiative, Apple Intelligence, at the WWDC 2024. However, this new AI push won't be available on all of its platforms at launch, limiting its initial impact.

Additionally, Tim Cook’s company revealed a partnership with Microsoft Corp.-backed OpenAI to integrate ChatGPT into iOS 18, iPadOS 18, and macOS 15 Sequoia. This integration is part of Apple’s broader AI strategy, which includes using OpenAI's technology for AI writing summaries across its operating systems.

Despite these advancements, analysts like Ming-Chi Kuo have noted that investors are seeking more substantial developments. Kuo praised Apple’s focus on ecosystem integration and interface design but indicated that these improvements might not be enough to satisfy investor expectations.

Meanwhile, CNBC's Jim Cramer has expressed increased optimism for Apple following the company’s AI breakthroughs at WWDC 2024. Cramer believes that the new AI, named Apple Intelligence, will enhance user experience with more personalized and advanced services, potentially boosting the stock in the long run.

Price Action: On Monday, Apple stock closed at $193.12 while it was trading 0.48% lower at $192.20 on Tuesday’s pre-market at the time of writing, according to Benzinga Pro.

Read Next: Apple Integrates New ChatGPT Features In iPhone, Mac And iPad: Sam Altman Thinks ‘You Will Really Like It’

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

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