apple Shares fell more than 3% on Tuesday, a day after the company unveiled new artificial intelligence software at its annual Worldwide Developers Conference.
Apple announced a new framework that lets app developers take advantage of Apple Intelligence on iPhones and Macs, as well as a new version of Siri called Siri AI based on large-scale language models. Apple also revealed that it uses a cloud model “comparable” to the so-called Frontier model, with the help of: google and Nvidia.
But investors sold the news, with Apple posting its worst day since February.
Analysts responded positively to Apple’s announcement, praising the improvements to Siri. However, some analysts said that while developers can already test it in beta software, it wouldn’t come as much of a surprise or provide a short-term boost to the stock, especially since Apple hasn’t committed to a release date for Siri AI.
“The company has presented a solid vision and some early personalized/contextual AI use cases, but while the company plans to release a beta version of Siri AI later this year, there is no specific date for a full release,” Baird analyst William Power wrote. “We think that’s contributing to the intraday decline.”
goldman sachs Analysts said Apple could drive strong product update cycles by integrating AI into its hardware, but also noted that Apple has opportunities to monetize AI through rate limiting and subscriptions.
“Some features, such as image generation, rely on a powerful server model and therefore have daily usage limits,” Goldman analyst Michael Ng wrote. “Users can increase access through most iCloud+ subscription plans, which should accelerate direct monetization of Apple Intelligence.”
JP Morgan Analyst Samik Chatterjee noted that Apple has said regulatory issues will delay the rollout of AI capabilities in China and Europe, and noted that it will initially be available only in English.
“The launch of Siri AI in the US in the fall is a big boost for the holiday season, but future expansion into other regions and languages will be a key focus for investors going forward,” Chatterjee wrote.
wrote that Apple Intelligence could overwhelm consumers with too many choices. UBS Analyst David Vogt. He wrote that he doesn’t expect the new features to be a “significant change in demand” for Apple hardware.
“Despite various interesting AI-related announcements, we are not changing our iPhone forecasts because we do not believe new products will drive demand for the iPhone,” Vogt wrote.
Apple’s stock price chart from the beginning of the year to today.
