Ming-Chi Kuo Says Apple's Intelligence Showcases iPhone Makers 'Strengths In Ecosystem Integration And Interface Design' But Investors Want More
Ming-Chi Kuo, a well-known analyst, has lauded Apple Inc. (NASDAQ:AAPL) for its AI and ecosystem integration advancements. However, he indicated that investors are seeking more substantial developments.
What Happened: Kuo, an analyst at TF Securities, took to X, formerly Twitter, and expressed his views on Apple’s AI initiatives.
He praised the company’s focus on ecosystem integration and interface design, stating that these improvements are primarily aimed at enhancing convenience and existing applications, which is advantageous for users.
However, he noted that these features are merely “nice-to-have” from an investor’s perspective. “Investors expect to see original, must-have features.”
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Additional concerns among investors include the staggered global rollout of Apple Intelligence and whether its key feature of integrating OpenAI’s ChatGPT will be usable in the Chinese market, Kuo noted. Currently, ChatGPT is prohibited in China.
Why It Matters: Apple’s AI efforts were unveiled at the Worldwide Developers Conference, where the company announced its AI-powered personal intelligence features, dubbed “Apple Intelligence.” These features were integrated into the operating systems for iPhones, iPads, and Macs, enhancing apps like Messages, Mail, Calendar, and more.
During the same event, Apple announced a partnership with Microsoft Corporation-backed OpenAI to integrate ChatGPT into iOS 18, iPadOS 18, and macOS 15 Sequoia. This conversational AI model is part of Apple’s broader AI strategy, which includes using OpenAI’s technology for AI writing summaries across its operating systems.
However, despite these advancements, Apple’s shares fell on the day of the WWDC 2024 announcement. Historically also Apple's stock performance around WWDC events has been underwhelming. Over the last ten years, the company’s shares have more frequently ended lower than higher in the aftermath of these events.
Price Action: Apple’s shares dropped by 1.91% on Monday. In the after-hours session, the shares fell by an additional 0.41%, closing at $192.33, according to Benzinga Pro.
Photo courtesy: Shutterstock
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.