Analysts expect Apple Intelligence to reduce demand for iPhones in the near-term
Apple’s efforts to narrow its AI gap with rivals by partnering with OpenAI cued crickets on Wall Street as the iPhone maker’s stock price fell about 2% in Monday after-hours trading.
“Apple Intelligence” — the term repeated about 60 times at Apple’s June 10 Worldwide Developers Conference, according to the Wall Street Journal — features a partnership with OpenAI’s ChatGPT which aims to breath new life into Siri, the company’s aging voice assistant.
Apple sees good times ahead. “We think Apple Intelligence is going to be indispensable to the products that already play such an integral role in our lives,” Apple CEO Tim Cook said in his presentation, the Journal noted.
Apple — which suffered a 4.3% revenue decline in the March 2024-ending quarter — needs new growth to revive its stock. Investors are not convinced the announcement will supply the needed revenue. Many analysts see the OpenAI deal further reducing iPhone demand.What Is Apple Intelligence?
Proofread and suggest what users write in emails, notes or text;
Prioritize messages and notifications;
Answer user questions, create images and write software code;
Check whether a rescheduled meeting would overlap with a user’s family commitments;
Summarize audio recordings;
Enable users to create movies from photos by writing a description;
Clean up photos by taking out distracting background images;
Reduce hacking risk by processing user requests on the iPhone rather than at a data center;
Operate the service on an Apple-controlled cloud service using Apple semiconductors; and
Divert user requests Apple can’t handle to ChatGPT.
Apple will also revive the languishing Siri. The voice assistant fails to recognize “various requests” and is unable to converse because it follows each individual command, the Times wrote.
Siri will remember the context of a user’s request and repurpose information in an image for a text application, Apple said. For example, “If someone asks for the weather in Muir Woods National Monument and later asks to schedule a hike there, Siri will now know that the hike it is scheduling is in Muir Woods,” the Times reported.
