Will Apple’s AI strategy be enough to support its recovery?
The market is likely to sigh as the American tech giant enters the artificial intelligence race.
Here’s a question for your friendly digital assistant: Can artificial intelligence (AI) revive iPhone sales?
For investors, the answer is yes. Apple shares hit a new high on Wednesdaytwo days afterafter the company announced its long-awaited strategy for AI. The stock’s 10% rise since Monday’s close has boosted the company’s market capitalization by more than $300 billion (€280 billion). briefly surpassed Microsoft to once again become the world’s most valuable company during Wednesday’s session.
The market may be in a hurry. Apple IntelligenceWhat is the name of Apple’s artificial intelligence platform? This doesn’t seem revolutionary at all. Some of the features coming this fall, such as automatic editing and suggestions when writing an email or text message, They already exist in Gmail, Google and Microsoft products. What about using AI to better organize and filter our inboxes? Gmail has this too.
Only the latest Apple devices, such as the iPhone 15 Pro and 15 Pro Max, will be able to take advantage of the new AI features. New synthesis tools, custom emojis, and AI-powered Siri could be a great solution. But It is not obvious that there are enough of them. so consumers are rushing to Apple stores to upgrade their phones.
The iPhone is Apple’s largest source of revenue. Last year, that accounted for more than half of the $383 billion the company earned in total. But Sales of the device fell sharply. They fell 10% year on year in the fiscal second quarter ended March. This decline is in addition to the 2.4% in fiscal year 2023.
The problem is that due to inflation, consumers in the US, Apple’s largest market by revenue, keep their devices longer. In China, its second market, AI will not change the situation. government interference in the use of their devices by government employees. Growing tensions with the US have also contributed to the development of national brands such as Huawei.
Samsung, Google and Chinese manufacturer Honor are already selling phones with artificial intelligence features. However, consumer interest in deeply integrating AI into their lives has yet to be proven.
Apple, with its loyal user base and the huge attention it attracts from them, has an advantage in this regard, although the monetization of these services is unclear. Apple’s signature determination to maintain control with its own chips and designs will raise questions about costs and the impact of artificial intelligence plans on profit margins.unless a super cycle of new phone sales starts soon.
However, Apple lags behind its major technology competitors by not providing any information about artificial intelligence. After two years of silence The market is likely to sigh as Apple enters the AI race.
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