Apple’s stock value soared to an all-time high with the reveal of eagerly anticipated advancements in artificial intelligence, in a move intended to charm customers with a bespoke and low-profile use of the technology. The tech giant’s shares experienced a 7.3 per cent rise with a valuation of $207.15 (€192.68), noting the year’s first record peak. Initially, investors demonstrated lukewarm interest in the announcement, leaving the company’s share price virtually unaltered in pre-market transactions – a typical response when Apple introduces highly awaited new features. On the contrary, shares of crucial Apple suppliers experienced a downturn overnight.
The unveiling of a novel AI structure named Apple Intelligence stole the show at the company’s Worldwide Developers Conference on Monday, alongside revelations about enhancements to the firm’s operating systems. The technology will assist users by summarising text, generating innovative images, and accessing the most pertinent data as and when required. Additions to the initiative include an enhanced version of Siri, Apple’s ground-breaking digital assistant.
Apple is placing a big bet on catching up with competitors in the thriving artificial intelligence market. Despite falling behind tech behemoths like Google (under Alphabet) and Microsoft, Apple is reliant on a streamlined interface and a dedicated customer base to recoup lost ground.
Craig Federighi, senior vice president in charge of software engineering, referred to the unveiling of Apple Intelligence as a milestone that they’ve been aiming for, dubbing it as “AI for the rest of us,” harking back to an old catchphrase attached to the Mac computer.
Apple also confirmed its collaboration with OpenAI, which saw ChatGPT made available to users via Siri with no additional charges. The rollout of Apple Intelligence is expected to commence later this year, but certain features, including Siri’s advanced app control functionality, are not expected to launch until the following year. Further language support beyond English is also anticipated at a later stage.
Despite an initial head-start in AI with the launch of Siri in 2011, Apple soon found itself surpassed by Google’s Assistant and Amazon’s Alexa. This AI landscape then evolved further with the introduction of OpenAI’s ChatGPT at the close of 2022. This development instigated the launch of several other services, including those from Google, Microsoft, and Meta Platforms. Samsung Electronics, Apple’s principal smartphone competitor, also incorporated Google AI features into its devices earlier this year.
Emphasising the need for the iPhone manufacturer to once again become a trendsetter, Apple CEO Tim Cook is currently experiencing mounting pressure. A wider decrease in sales also plagues the company. In five out of the previous six quarters, there has been a fall in revenues due to diminished smartphone demand and a slowing market in China.
On Monday, Mr Cook expressed his belief that Artificial Intelligence (AI) will represent “the next major leap for Apple.” The company will not directly profit from these new advancements, but the intention is to bolster user loyalty and entice them to upgrade on a more regular basis.
Mr Cook further commented, “We predict that Apple Intelligence will become crucial to the products that are already essential in our everyday lives.” (source: Bloomberg)