Financial markets/economy

Apple's AI strategy not entirely convincing the markets

Posted by MoneyController on 11.06.2024

Some news came from Apple, which also addressed the issue of artificial intelligence during the Worldwide Developers Conference.

AI and ChatGPT in the next version of the operating system

During the last Worldwide Developers Conference, Apple also presented its artificial intelligence (AI) strategy. Looking at the stock on the market, one could say that the markets do not seem to have approved of Apple's strategy: the stock lost around 1.9 per cent of its value on Monday. This strategy consists, on the one hand, of integrating AI into the Siri voice system and, on the other hand, of including ChatGTP in the next version of the operating system.

AI will be available for both iPhone 15 and iPhone 16

As Therese Poletti writes (‘MarketWatch’), one of the reasons that may explain the stock market result lies in the disappointment of some investors, who would have preferred it if the AI systems were only developed in the upcoming iPhone 16 model (this could have had a positive effect on sales). Instead, the AI systems will also be available for the iPhone 15, a smartphone model already on the market today.

Getting users to discover the potential of AI

The CEO of Creative Strategies, Ben Bajarin, interviewed by ‘yahoo!finance’, explained how Apple's strategy aims to make those many users who do not use it perceive the usefulness of AI. As Julie Hyman (‘yahoo!finance’) points out, apart from China, only a minority of smartphone users would be interested in seeing an AI system developed on their device: according to a survey, only 27 per cent are interested, while 28 per cent are not, and the remainder are more or less indifferent.

The Private Cloud Compute system

Therese Poletti points out that part of the investors' disappointment also stems from the fact that Apple is not investing large amounts of capital in building an infrastructure for AI based on graphics processing units (GPUs). Nevertheless, the Cupertino-based company, led by Tim Cook, has announced that in the event that the query exceeds the computational capabilities of the device, Apple's users will be able to rely on the company's ‘Private Cloud Compute’ system, which is based on silicon semiconductors made by Apple itself.

Read also:

NVIDIA overtakes Apple to become world's second largest company by market cap

OpenAI and Google, the two champions of the artificial intelligence challenge

Apple tries to regain market confidence

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