Apple Inc (Nasdaq: AAPL) hit a record high of over $200 for the first time after announcing Apple Intelligence at the 2024 WWDC on Monday.
How is Apple AI different from rival products?
The tech behemoth has opted for a different approach to artificial intelligence than its rivals including Microsoft. Instead of announcing widely applicable AI products – AAPL is focusing on artificial intelligence offerings for its own devices only. Apple Intelligence has a more “personal” touch and is aimed at handling smaller tasks efficiently and with minimal consumption of battery. “We think AI’s role is not to replace our users but to empower them”, said Craig Federighi – the software chief of Apple Inc. Its competitors, in comparison, have so far focused on supercomputers and exceptionally heavy AI models.
Why has Apple partnered with OpenAI?
Apple has decided against introducing one big, most capable AI model like rivals. Instead, it plans on rolling out a bunch of smaller, purpose-specific models that aren’t as power-hungry and, therefore, can run easily on its own devices. The multinational has teamed up with OpenAI to enable its users access to a larger AI model (ChatGPT) on the cloud. But that would strictly be needed if artificial intelligence on the iPhone (for example Siri) failed to adequately answer the user’s query. “We think the right approach to this is to have a series of different models and different sizes for different use cases”, said John Giannandrea – the AI chief of $AAPL at a panel discussion on Monday. Apple Intelligence will be launched as a beta in the fall of 2024.
Apple stock has further upside to $230
All in all, Apple is committed to bringing artificial intelligence to the device itself to make it faster with added privacy benefits compared to the cloud-based AI. The AI announcements $AAPL made at the 2024 WWDC were sufficient for Gil Luria – a D.A. Davidson analyst to raise his price objective on Apple stock to $230 which signals potential for another 15% upside from here.
We believe yesterday’s presentation rhymes with one of Apple’s previous milestone moments – the transition of digital music from a standalone app with questionable regulatory standing (i.e. Napster) to an experience integrated into existing consumer applications (i.e. iTunes).
The 2024 WWDC has cleared path for a new era for the iPhone, he added.More By This Author:CrowdStrike Joins S&P 500: Is CRWD A Better Pick Than Palo Alto Networks?
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