Key takeaways
- Apple will kick off its Worldwide Developers Conference (WWDC) on June 10, with investors likely to watch for announcements related to artificial intelligence (AI).
- The iPhone maker is expected to unveil iOS 18 and could introduce new AI features.
- Analysts predict that new iPhones with built-in AI capabilities could fuel an accelerated iPhone upgrade cycle.
- The company could also comment on reports that it is in talks with Google and OpenAI to integrate AI technology into Apple devices.
- Analysts said WWDC could move Apple’s stock, but might not be as big a catalyst as the iPhone 16 announcement expected in the fall.
Apple (AAPL) is expected to hold its annual Worldwide Developer’s Conference (WWDC) keynote on June 10, kicking off the five-day event, with investors likely to be on the lookout for any updates up-to-date information on the company’s activities. artificial intelligence (AI) Game plan.
New AI features and iOS 18 expected
The iPhone maker should to unveil its latest operating system, iOS 18, as well as Generative AI features built into Apple apps like iMessage, Photos, and Safari.
Apple recently announced a new iPad Pro powered by its latest chip, the M4, which can support running AI applications locally, marking a key milestone in Apple’s push into AI. Previously, the company was relatively silent on its AI initiatives compared to many its major technological peers.
Analysts said that while they don’t expect Apple to unveil the new iPhone 16 until the fall, the company could still reveal some AI-related updates.
“We see more AI announcements from Apple in September at the iPhone 16 launch than at WWDC, but we also see WWDC as a positive direction,” Bernstein analysts said.
AI-powered iPhone upgrade cycle
Bank of America Analysts noted they predict that “upcoming AI-enabled phones (IntelliPhones) will result in a multi-year upgrade cycle similar to the incremental feature improvement driven by the introduction of smartphones.”
Analysts said they “expect the AI phone adoption curve to be faster than smartphone adoption, 5G,” and that “with an installed base of more than 4 billion smartphones,” Apple may have the opportunity for the next upgrade cycle to be a “once-in-a-decade type of event.”
Potential AI partnership
The company could also comment on recent reports of a potential partnership with Microsoft (MSFT) OpenAI and the alphabet (GOOGLE) Google.
A deal could allow the companies’ respective AI models, GPT-4o and Gemini, to integrate AI technology into Apple software and devices. An AI partnership with OpenAI or Google could also catalyze a major upgrade to Apple’s Siri voice assistant.
How AI Announcements Could Affect Apple Stock
Analysts at Melius Research said “Apple shares are bracing for a move higher” as the upcoming WWDC could be the most important annual conference “since the iPhone launched in 2007.”
Analysts said the stock “typically trades during the event and then sells off,” while noting that “these AI announcements have broken some well-known patterns for other stocks” and could also do it for Apple.
Melius said that “the WWDC announcements are likely to drive higher ASP iPhone units soon” and could help “ensure Apple’s high-margin services revenue growth for a long period of time,” adding that that’s “all that matters in the long run.” investor.”
Apple shares have gained about 7.5% over the past 12 months and 0.3% year to date, to $193.05 per share Monday as of 2:50 p.m. ET.
