Will New Apple AI Platform Move Stock Price?

apple’s (NASDAQ:AAPL) The annual Worldwide Developers Conference (WWDC) is always a big event, but this year it’s even more exciting thanks to Apple’s new AI Platform initiative.

WWDC has finally begun. It ran from Monday to Friday and started off with a bang. It started with an opening video reminiscent of a scene from a movie. impossible mission Apple executives parachute out of a plane. Details continued on all the new rumored plans, including AI, iOS18, Vision Pro, iPad, and more.

Apple has certainly delivered its products with sweeping upgrades, but are investors buying them? When Apple’s stock price fell about 2% on Monday, the initial reaction was “very.”

But after digesting the news in one day, Apple shares were on the rise, up about 3% on Tuesday morning. Below are highlights from the first day of WWDC.

Apple AI Platform and ChatGPT

Monday’s headliner was the launch of Apple Intelligence, a new AI platform that will be integrated into iOS 18. With Apple Intelligence, new versions of iOS include a Siri upgrade. Tools to help you write; New features for mail, text messaging, and photos; Ability to record and transcribe audio; Features include image creation tools, expanded emojis, enhanced data privacy, and more.

Generative AI capabilities are powered with the help of ChatGPT through a partnership with OpenAI. ChatGPT is integrated into the Siri voice assistant, new writing tools, and other apps.

Equipped with cutting-edge Gen-AI technology, ChatGPT makes Siri more intuitive, more interactive, more responsive, and capable of handling a wider range of commands. It’s also free for iPhone users and is built into the system so users don’t have to switch between apps.

Apple Intelligence is integrated into the new iOS 18, iPadOS 18, and macOS Sequoia systems. The system will undergo beta testing this fall and be officially released later this year.

But you won’t be seeing Apple Intelligence on your old iPhone any time soon. These features are only available on iPhone 15 Pro, iPhone 15 Pro Max, iPad with M1 or later, and Mac. Apple Intelligence will also be built into future iPhone models, including the iPhone 16, which is rumored to be released in September.

So, if you have an iPhone 15, iPhone 14, or earlier model, you won’t be able to get the AI ​​upgrade unless you buy a new iPhone 15 Max or Pro or save some money when the iPhone 16 comes out.

iOS and Vision Pro upgrades

This wasn’t the only news from the first day of WWDC. As mentioned earlier, iOS 18 includes many of the aforementioned AI features.

For example, iOS 18 includes a redesigned Control Center, improved Apple Maps, Safari web browser, and upgrades to Photos, Text Messages, Mail, Notes, Journals, and more. There are also password apps that make it easier to access all the passwords we’ve all accumulated.

iOS 18 will be available as a free software update for iPhone Xs and later this fall, but the AI ​​feature will only be available for the phones mentioned above.

Apple has also released an update to its Vision Pro virtual reality headset that introduces VisionOS2. The new software allows users to create spatial photos from images in their library, uses new intuitive hand gestures to access information, and provides nearly 2,000 spatial apps designed specifically for Apple Vision Pro. .

Is Apple stock a buy?

This just scratches the surface of the new features revealed across Apple products. Early investor disappointment may have stemmed from the fact that it was just another ploy to sell the iPhone. That means making these new features only available on new, more expensive models.

On the positive side, that This is just another strategy to sell iPhones and will increase sales, which have fallen 10% over the past year as of the latest earnings report. June quarter sales are not expected to be significant as Apple expects low single-digit sales growth, but these upgrades could boost sales in the second half of the year.

Apple stock has a reasonable valuation with a P/E ratio of 30 and a forward P/E of 26, so it might not be a bad time to buy some shares, especially if investors are “selling on the news.”