Apple shares nudged higher Monday, putting them back within touching distance of their recent record highs, as investors look to the tech giant’s highly anticipated unveiling of its AI ambitions later today in California.
Apple (AAPL) , which has lagged most of its Magnificent 7 peers this year and lost its place as the world’s second-largest company by market value to Nvidia (NVDA) last week, is looking to recapture investor interest with a compelling AI narrative at its World Wide Developers’ Conference later today.
The WWDC, an annual event at Apple’s Cupertino headquarters, typically focuses on the software developers who work with the tech giant to design new apps for its myriad consumer devices.
The company also issues updates to its current system, including new features and improved performance, across its installed base of iPhones, Macs, iPads and Apple Watches.
This year’s event, however, will focus largely on Apple’s plans to infuse those devices with both a new operating system and a likely new family of apps with generative-AI technologies.
In what could be the group’s most important development since it launched the iPhone in 2006, investors are looking to today’s WWDC to both unveil the group’s near-term AI plans as well as its broader strategy to harness the power of the fast-developing technology.
“We believe that the impact of generative AI to Apple’s business is one of the most profound in all of technology, and unlike much of the innovation in AI that’s impacting the developer or enterprise, Apple has a clear opportunity to reach billions of consumer devices with generative AI functionality,” said D.A. Davidson analyst Gil Luria.
Big change in Apple tactics
Near-term success for the group’s plans, however, could hinge on a decision that Apple has been largely reluctant to take under both current CEO Tim Cook and his predecessor, founder and tech-market icon Steve Jobs.
Apple’s business relies on a tightly controlled ecosystem of devices and services that are easy for consumers to navigate but leaves them with few options outside the Apple embrace.
With an installed base of 2.2 billion devices, the infusion of AI technologies is likely to provide a key boost to services revenue, which is the fastest growing of Apple’s overall business mix. But it may come at a price that Cook may find uncomfortable.
