Apple’s (NASDAQ:AAPL) annual Worldwide Developers Conference (WWDC) is at all times an enormous event, but this yr, the hype was elevated — because of Apple’s latest AI platform initiatives.
There had been rumors for months regarding the artificial-intelligence developments at Apple and significant upgrades to the subsequent version of the iPhone’s operating system, iOS 18.
WWDC is finally here, launching on Monday and running through Friday, and it kicked off with a bang. It began with a gap video that looked like a scene from Mission: Inconceivable with Apple executives parachuting out of a plane. It continued with details about all the brand new initiatives that had been rumored, including AI, iOS18, Vision Pro, the iPad and more.
Apple definitely delivered the products, because it were, with upgrades across the board, but are investors buying? The initial response was an entire lot of “meh,” as Apple’s stock price fell about 2% on Monday.
Nonetheless, after a day of digesting the news, Apple stock trended higher on Tuesday morning, rising about 3%. Listed here are the highlights from day one in every of WWDC.
Apple AI platform & ChatGPT
The headliner on Monday was the launch of Apple Intelligence, the brand new AI platform that can be integrated into iOS 18. Via Apple Intelligence, the new edition of iOS includes upgrades to Siri; tools to assist with writing; latest features for mail, text messages, and photos; the flexibility to record and transcribe audio; and image-creation tools, expanded emojis, and enhanced data privacy, amongst other features.
The generative-AI features can be powered with the assistance of ChatGPT through a partnership with OpenAI. ChatGPT can be integrated into the Siri voice assistant and into the brand new Writing Tools, amongst other apps.
With its state-of-the-art gen-AI technology, ChatGPT will make Siri more intuitive, interactive and responsive, in a position to handle a broader range of commands. It can even be free for iPhone users, built into the system so users don’t must toggle between apps.
Apple Intelligence can be integrated into the brand new iOS 18, iPadOS 18 and macOS Sequoia systems. Those systems can be out in beta testing this fall and available in a full rollout later this yr.
Nonetheless, you won’t see Apple Intelligence in your old iPhone anytime soon. Those features will only be available on the iPhone 15 Pro, iPhone 15 Pro Max, and iPad and Mac with M1 and later. Apple Intelligence may also be built into future iPhone models, including the iPhone 16, which is rumored to be coming out in September.
Thus, if you will have the iPhone 15, iPhone 14 or any model before that, you won’t get the AI upgrade unless you purchase a latest iPhone 15 Max or Pro or plunk down money for the iPhone 16 when it comes out.
iOS and Vision Pro upgrades
That was not the one news out of day one in every of WWDC. As mentioned, iOS 18 includes lots of the aforementioned AI features, amongst others.
For instance, iOS 18 features a redesigned control center, enhanced Apple Maps, and upgrades to the Safari web browser, photos, text messages, mail, Notes, and Journal, to call just a few. There may be also a passwords app to make it easier to access all those passwords all of us have accrued.
iOS 18 can be available this fall as a free software update for iPhone Xs and later, however the AI features will only be on the phones mentioned above.
As well as, Apple rolled out an update to its Vison Pro virtual-reality headset, introducing VisionOS2. The brand new software allows users to create spatial photos with the pictures of their library, has latest intuitive hand gestures to access information, and features some 2,000 spatial apps designed specifically for Apple Vision Pro.
Is Apple stock a buy?
This just scratches the surface of the brand new features unveiled across Apple products. The initial investor disappointment can have come from the incontrovertible fact that it’s just one other ploy to sell iPhones — making these latest features only available on the brand new, costlier models.
On the plus side, it’s just one other ploy to sell iPhones, and it’ll probably boost flagging sales, which fell 10% over the past yr as of the most recent earnings report. June-quarter sales should not expected to be great, as Apple anticipates low single-digit revenue growth, but these upgrades could spur sales within the second half of the yr.
Apple stock has an affordable valuation with a P/E ratio of 30 and a forward P/E of 26, so it won’t be a foul time to choose up some shares, particularly if investors “sell on the news.”