Friday, April 4, 2025

Apple Unveils Game-Changing AI Strategy, Stock Prices Skyrocket

AFP Yonhap

On June 11, Apple’s stock price surged more than 6%, setting a new all-time high.

This year’s Worldwide Developers Conference (WWDC2024) kicked off with a five-day schedule with Apple generating a big buzz after they announced a partnership with OpenAI and the unveiling of Apple Intelligence.

Apple’s stock price surpassed its previous all-time high set on December 14, last year for the first time in about half a year.

Apple Intelligence Available Beginning with the iPhone 15

Apple stated that to use its AI function, the specifications must be higher than the iPhone 15, which was released last fall.

This means that to use chatGPT or Apple Intelligence on an iPhone, the user must have the iPhone 15 or upgrade to the iPhone 16 which is set to be released this fall.

Currently, the iPhone 15 only makes up 5% of the total number of iPhones produced. This implies that a majority of iPhone users will have to upgrade their phones to use Apple’s latest technology.

Triggering a Massive Upgrade?

Analysts predict that Apple’s new strategy will have a positive impact on Apple’s performance and stock price.

In an analysis note on June 11, Morgan Stanley was optimistic that Apple’s AI capabilities would strengthen its position as a differentiated digital company and trigger a massive demand for iPhone upgrades.

Morgan Stanley reaffirmed its recommendation its overweight recommendation (buy) and significantly revised its target price from $216 to $270.

Bank of America (BofA) also positively evaluated Apple’s AI strategy.

BofA also expected that Apple would strengthen the upgrade cycle through the so-called IntelliPhone, which is AI-capable.

iPhone Super Cycle

Amit Daryanani, an analyst at Evercore ISI, was optimistic that Apple would enter an iPhone upgrade super cycle.

This is because the remaining 95% of iPhone users, excluding the 5% with the AI-capable iPhone 15, may have to upgrade their iPhones sooner than expected.

Daryanani expressed optimism about Apple’s AI strategy, which was reaffirmed at WWDC2024, and expected Apple to continue growing based on the iPhone super cycle.

Apple closed at $205.06, a surge of $11.94 (6.18%) from the previous day, setting a new all-time high an hour before the market closed.

Hot this week

Amazon Wants TikTok—and the Race to Buy It Just Got Real

Amazon has expressed interest in acquiring TikTok as competition heats up before a potential U.S. ban on the app.

Trump Hits Allies with Major Tariffs, Says ‘Allies Often Worse Than Enemies’

Trump initiates a trade war, imposing tariffs on Northeast Asia and criticizing South Korea and Japan's auto markets for trade imbalances.

Elon Musk May Leave Trump’s Admin, and Tesla Investors Love It

Trump celebrates "Liberation Day" as Tesla shares rise amid speculation of Musk's resignation from government role, despite delivery declines.

Google Warns: North Korea’s Cyber Army Has Infiltrated Europe, and Asia Pacific May Be Next

North Korean cyber threats are expanding globally, targeting Europe and using diverse tactics to exploit job markets and fund operations.

Beyond Smartphones: Inside Xiaomi’s Offline Store and Its Vision for Expansion

Xiaomi plans to open its first store in South Korea, offering a wide range of products and improved after-sales service.

Topics

Amazon Wants TikTok—and the Race to Buy It Just Got Real

Amazon has expressed interest in acquiring TikTok as competition heats up before a potential U.S. ban on the app.

Trump Hits Allies with Major Tariffs, Says ‘Allies Often Worse Than Enemies’

Trump initiates a trade war, imposing tariffs on Northeast Asia and criticizing South Korea and Japan's auto markets for trade imbalances.

Elon Musk May Leave Trump’s Admin, and Tesla Investors Love It

Trump celebrates "Liberation Day" as Tesla shares rise amid speculation of Musk's resignation from government role, despite delivery declines.

Google Warns: North Korea’s Cyber Army Has Infiltrated Europe, and Asia Pacific May Be Next

North Korean cyber threats are expanding globally, targeting Europe and using diverse tactics to exploit job markets and fund operations.

Beyond Smartphones: Inside Xiaomi’s Offline Store and Its Vision for Expansion

Xiaomi plans to open its first store in South Korea, offering a wide range of products and improved after-sales service.

Ghibli-Style AI Images Send ChatGPT’s User Count Soaring

ChatGPT's daily users in South Korea hit 1.4 million, fueled by the new image-generation model and its viral popularity.

The ‘Dirty’ Truth About Hot Coffee on Airplanes

A flight attendant warns against ordering coffee on planes due to unsanitary water tanks and coffee pot maintenance issues.

Tesla and Nvidia Lift Nasdaq as Dow Takes a Hit

Wall Street saw mixed results, with the Dow slipping slightly while Tesla and CoreWeave stocks surged amid market uncertainty.

Related Articles