Thursday, April 24, 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

AI Politeness Has a Cost: Saying ‘Thank You’ to AI Adds to Energy and Water Consumption

Users thanking AI may lead to increased energy consumption, as polite interactions raise server loads and electricity costs significantly.

Dow Soars Over 1,000 Points as U.S.-China Trade Hopes Lift Markets

U.S. stock indices surged over 2.5% as optimism grew for a U.S.-China trade deal, while Tesla faced mixed reactions post-earnings.

Oil Snaps Back: U.S. Sanctions on Iran Fuel Fresh Price Surge

Oil prices surged after U.S. sanctions on Iran, despite previous declines due to market sentiment influenced by Trump’s criticism of the Fed.

Conclave Set to Begin as Vatican Mourns Pope Francis; Korean Cardinal Among Electors

Pope Francis's funeral is set to be modest, with a conclave to elect his successor commencing next month. Cardinal You will participate.

Trump-Powell Fallout Roils Markets: Dow Plunges 972 Points, Tesla Drops Nearly 6%

The NYSE faced a major sell-off as doubts about the Fed's independence led to sharp declines in major tech stocks and the dollar.

Topics

AI Politeness Has a Cost: Saying ‘Thank You’ to AI Adds to Energy and Water Consumption

Users thanking AI may lead to increased energy consumption, as polite interactions raise server loads and electricity costs significantly.

Dow Soars Over 1,000 Points as U.S.-China Trade Hopes Lift Markets

U.S. stock indices surged over 2.5% as optimism grew for a U.S.-China trade deal, while Tesla faced mixed reactions post-earnings.

Oil Snaps Back: U.S. Sanctions on Iran Fuel Fresh Price Surge

Oil prices surged after U.S. sanctions on Iran, despite previous declines due to market sentiment influenced by Trump’s criticism of the Fed.

Conclave Set to Begin as Vatican Mourns Pope Francis; Korean Cardinal Among Electors

Pope Francis's funeral is set to be modest, with a conclave to elect his successor commencing next month. Cardinal You will participate.

Trump-Powell Fallout Roils Markets: Dow Plunges 972 Points, Tesla Drops Nearly 6%

The NYSE faced a major sell-off as doubts about the Fed's independence led to sharp declines in major tech stocks and the dollar.

Crude Slips After Trump Criticism of Fed Sparks Market Turmoil

Oil prices plummet as Trump's criticism of Fed Chair Powell triggers market turmoil; gold hits record high amid safe-haven demand.

Delta Sets the Bar: Only Airline on Fortune’s Best Workplaces List

Delta Air Lines ranks 15th in Fortune's '100 Best Companies to Work For', marking six consecutive years on the list, CEO Ed Bastian says.

Snap, Save, Sustain: Samsung’s ‘Ocean Mode’ Contributes to Planting Over 11,000+ Corals

Samsung's Coral in Focus project uses Galaxy tech for coral restoration, achieving significant marine ecosystem improvements in one year.

Related Articles