AI

What Apple Intelligence means for Apple’s stock: YF Reports


Apple (AAPL) shares climbed to record highs following a series of product announcements at the company’s Worldwide Developers Conference 2024. The biggest announcement was Apple’s new AI-integrated operating system: Apple Intelligence. Yahoo Finance breaks down Apple’s new AI features, what’s next for the tech giant, and how Apple’s move into artificial intelligence could possibly disrupt the tech sector.

For more expert insight and the latest market action, click here.

This post was written by Noah Chadwick

Video Transcript

Apple stock soared by 7% on Tuesday, marking its largest single day gain ever after the company announced Apple Intelligence.

Now the tech giant planning to integrate generative A I into the latest software models.

Our experts share insights on what this means for Apple and what it means for its competitors.

Well, Apple’s latest announcements at their worldwide developers conference known in your hood as WW DC may have helped the company’s shares rise to a record high on Tuesday, but consumers are still digesting what new tricks and tools may be coming to their products in the near future.

For more.

Let’s bring in our own, Dan Halley for this week’s edition of tech support new weekly segment.

We’re diving into the latest technology and tell you our viewer how you can benefit from it.

So Dan uh I mean, I know I’m gonna have to trade in my 12 Pro Max, I guess and get the 15 or something by the end of this year to take advantage of this.

Yeah, Brad uh kind of side story.

I’m writing a piece on how this is Apple’s kind of way of getting into generative A I but also getting you to buy a new iphone because it only works with a 15 max uh or 15 Pro max.

So if you bought an iphone 15 last year, you’re out of luck.

But let’s go over some of the, the features that you will get uh with I Os 18.

Uh They’re pretty interesting.

Uh I think one of the most important is uh obviously there’s a customizable home screen now, so you’re no longer having to stay with that rigid grid.

You can move apps around as you see fit, you can open up uh your images uh so that you know, your home screen photo isn’t just a picture that’s covered in tons of, of icons.

Now, you can also change the colors of them, you can put them in light mode, dark mode.

So it’s, it’s a fun little uh feature that you’re, you’re able to use.

I think that’s something that a lot people are gonna like.

There’s also a new uh ability to hide uh apps.

You can make them hidden behind a password and then hide folders.

Uh We’ll leave it up to your imagination, what you would do with apps like that.

Uh uh That’s called Lock an app.

Uh It’s an interesting feature, I think uh some people may, may like it.

Uh They’re also adding uh something called uh R CS uh Rich communications service.

This is for messages.

Uh And that’s an important factor in the blue bubble green bubble war.

Basically.

Uh you’re not going to be sending photos from your iphone to an Android phone and have them turn into little tiny squares that are, you know, difficult to see your terrible video quality.

Now you’re gonna get high quality photos, high quality video uh as well as uh encryption.

When you go back and forth with Android.

I think that still gonna have that green bubble though.

So the stigma remains, uh there’s also gonna be a big update for the Photos app.

Uh They’re adding new capabilities in there as well as a new design.

That kind of focuses more on uh not just the photos but what the photos uh mean.

So ties into different events that you may have gone to uh you’ll be able to uh categorize them.

Uh say you wanna look for images of a uh rock climbing expedition that you did.

I’m not doing that, but maybe I did.

Uh I could just type in uh rock climbing and I’ll pull that that up.

And there’s also the Showstopper for some reason is the calculator app going to ipad.

Uh I know it sounds silly but I, I got to see it in action and it is really impressive.

And the reason for that is they added this feature where you can literally write uh your math uh and then bright uh draw an equal sign and it will give you the solution if you slightly change what you have in the equation, it will change the, the uh uh uh the solution immediately.

So it’s, it’s incredibly impressive.

I mean, you have to see it.

Uh It, it’s, it’s completely wild.

It’ll draw graphs for you and everything along those lines.

It’s also gonna be available on, on the iphone as well.

Uh And then finally, there’s uh for the watch, uh there’s gonna be a new training mode that’ll help you get in shape.

Uh, it’s basically gonna log how your training has been going.

If you, uh, outperformed your normal, uh, uh, training regimen or you underperformed, uh, and then kind of help you figure out why along those lines.

So honestly, it’s, it’s a huge slew of updates outside of, of just the, the artificial intelligence that they announced.

Uh, and these are all features that you’ll be able to get regardless of what version of the iphone.

Uh, you have to a reasonable degree.

Exactly, Dan, thanks so much for breaking this down for us.

Appreciate it.

Apple shares surging 7% and adding $190 billion in market cap on Tuesday, its largest one day gain ever this after the tech giant announcing its artificial intelligence system to discuss if the plate is enough for consumers to hop on the A I bandwagon.

We’ve got finances for your own Julie Hyman here with us.

Hey, good morning.

I wrote about this in this morning’s morning brief newsletter as I was thinking through Apple’s announcements and sort of what was different about it and it’s not about whether consumers are going to hop on the A I bandwagon.

It’s that they are because, look, the three of us are all sitting here.

We all have our iphones right in front of us and we’re glued to them at all times.

So this is really going to be the first time as we get these A I introductions that people are going to be using A I in their daily lives at scale.

And it’s that part of it that really stuck out to me after you guys talked to Gloria of D A Davidson yesterday.

This is what he told you.

That means we’re gonna go from hundreds of millions of people using generative A I to billions of people as soon as this is introduced.

And that’s what’s gonna drive an iphone upgrade cycle.

And here’s the thing, even if it doesn’t drive an upgrade cycle, um even if it doesn’t drive it, people are still going to buy new iphones and people who have the iphone 15 will have access to these A I functions.

So you look at something like chat G BT which yes has large number of people using it.

But there are a couple of questions about that.

A what are they using it for?

Are they using it for daily life or they it for work?

Right.

And how often are they using it?

Probably not every single day you’re on this thing all the time.

So this will be the first time.

Like what is A I four?

What’s the killer use case on an individual personal basis?

We don’t know really?

And Apple is attempting to convince us.

Yeah.

And Julie, I think you summed it up just so well in your piece when you just said that proving part of it, right?

What, how, what they need to do to prove to consumers out there, maybe who are one of the people that have, that are not using A I in their daily lives right now, what they need to do to convince that and then ultimately, the trickle down effect or the impact that that’s gonna have on some of these other larger tech giants as well.

Right?

And it’s, there’s no guarantee it’s going to work, first of all.

Right.

Maybe, you know, I’m gonna ask Siri when my that is gonna arrive at the airport or whatever it is and it’ll give me the wrong answer or maybe I’m not gonna ask it in the first place because I’m still not gonna think to do it.

So there’s no guarantee that this convincing will work.

But it seems to me that, that what Apple and anyone else who’s trying to get people to use this stuff need to do is get it in front of them and actually using it because the presentation on Monday, yes, the stock went up a lot yesterday but on Monday, everybody was kind of like, that’s it.

A lot of the analysts who cover even the people who were bows were like, ok, it met expectations.

This was enough, but it didn’t, wow, people, it’s not gonna radically change your life.

Maybe until you start using it all the time.

I mean, just because Apple announced this, it doesn’t mean that all the other smartphone manufacturers fell in a ditch somewhere like they’re still going to try and iterate on top of the operating systems that they already have and try to introduce their own competitive product in A I form that can integrate into apps.

And it still comes back to the developers and what developers are able to put into the ecosystem that make it that much more of a customer lifetime value that Apple is able to extract and we still don’t know what any of this is for.

Like what is A I for for us individually?

I I think there has been a better case for the enterprise and what it is good for there.

There are so many companies who have talked to us about how they’re integrating chat bots into customer service, using it for coding, using it to save money.

In many cases, it’s on the consumer personal level that I think that that case just has not yet been made.

If anybody is going to make it, Apple is a good contender.

Certainly there’s no reason why other smartphone makers are not also going to be making that case.

We’re going to turn now to big tech Apple shares are jumping after overtaking Microsoft and reclaiming its spot as the most valuable company.

This coming after Apple announced its new A I powered features at its worldwide developers conference and shot, I was looking at some of the commentary online to kind of understand why we saw an initial downside move from Apple stock after the announcements from the conference.

And then we saw obviously this big surge to the upside and some folks were saying Wall Street just wasn’t necessarily sure how to suss the news that we got out of the conference, wasn’t necessarily sure what was good enough news for Apple.

And then after some big commentators that are really famous within the space came out and said, hey guys, this is actually really big stuff coming from Apple that is what led to the rally once investors kind of digested that the good news from Apple was really good news.

Yeah, exactly.

And I think overall the commentary here from analysts, much of what we heard on Monday was expected, right?

And we have seen this resurgence just about some of the excitement surrounding Apple ahead of this announcement.

What exactly this is ultimately going to mean for the adoption story, whether or not Apple coming out having features that they announced on Monday, what exactly that is going to do to that next iphone cycle, if it’s going to be enough to convince and to convince uh their customers out there that they do need to go out and pay 1213 $1400 for a new phone because of these new features and the commentary that has trickled out since.

And I think initially it was, yes, this is exactly what we were expecting.

Nothing really going above and beyond, maybe what had already been out there in terms of the rumor mill.

But then I think once you take a step back, right?

And you think about what this means overall, getting back to that adoption point there just a second ago.

What ultimately, this means for some consumers that are not using A I capabilities on a day to day basis.

Ultimately, the impact that that is going to have on their life, what what that is going to do here for that longer term and and ultimately, what this does about excitement surrounding some of those other larger cap tech plays, right?

A lot of that could be, you could be argue, you could argue rides on some of the success, maybe that apple is going to have, but at least when it comes to that consumer everyday impact side of the story.

So that’s why Julie Hyman was out with a great morning brief this morning talking about that.

So yes, I guess some analysts remain split or maybe weren’t too excited.

Or overly excited, uh, by what we heard on Monday.

But again, when you take a look at the, at the reaction that we saw play out in the stock yesterday and of course, the gains today you can clearly see there.

Is that A I hype there.

Is that A I excitement?

And now Apple is one of the stocks after lagging behind for quite some time now, starting to benefit more from all of that excitement, right?

It seems like it was a little bit of a priced in event of by the rumors, sell the news heading into the week and now after the commentary, a lot of room to rally here.

Good morning.

This is Yahoo Finance, big news, three things that you need to know.

We just got the announcement.

What happens now?

I got a question.

What does success look like?

What was one of the biggest challenges that you face?

How much does that raise the odds for a recession?

This phase is over?

Tell me what happens to the debt ceiling.

Where does generative A I fit into your portfolio?

Talk to us about this diversification and what investors need to know.

And I think it’s important.

This is the stuff that gets me out of bed fired up.

What’s the gateway?

What’s the new opportunity?

Doesn’t matter if it’s a soft landing or a hard landing, big big interview?

I can’t wait Supreme Court out with the ruling on President Biden’s student debt cancellation.

Right.

Let’s turn now to some recent tech codes and they give you information if you watch them closely.

President President Mr Gary Ginzler, thank you so much.

Part of what Davis is about is sharing best practices coming forward with ideas and then enabling those ideas into action.

And I would add that there is more to come on this and we keep producing products that help people lead healthier lives.

This is one of those rooms they use to simulate light and space interest rates will come down again.

Figure out where your money is going.

Now, you gotta scope that out and the numbers really tell the story.

What does all this mean for you keep it tuned into Yahoo Finance, Apple.

After almost two years of essentially sitting out of the artificial intelligence frenzy, Apple finally made a big splash.

The company announcing a slew of A I tools coming to its platforms.

Shares are higher this morning and reversing some of the earlier losses that we had seen initially just after the announcements were made during Monday’s session down 2%.

So let’s get to Yahoo Finance’s market domination, Cohos, Josh Lyton, who has the ultimate guide for all things, Apple here.

Hey, Josh.

All right, Brad.

So I’m gonna dig into three of the big features.

Consumers are gonna be able to take advantage of with Apple’s new A I tools.

Number one, Brad, a brand new and improved Siri Apple sees Siri clearly as your A I personal assistant.

Customers can text Siri and even more than that with these new updates, Siri expect to anticipate things a human would, for example, it can send the photos you want to your mom or maybe find recipes for your dinner tonight with the help of a little friend known as chat G BT.

But do not worry.

It will ask your permission before including chat, chat G BT in your queries.

Number two, your notifications get an upgrade.

Apple promises its new A I to the new A I will put your most important notifications at the top and wait for it.

Your group messages will be summarized.

You no longer have to read 75 messages just to see how your friend’s date went last night, Brad and number three will correct your writing.

So the new A I tools will proofread, rewrite, summarize your notes, emails, pages and a lot more integrated writing tools will also suggest responses in different tones for messages and emails.

But there’s a lot that Apple did not mention about these new tools as well.

Company did not, for example, specifically say when the chat G BT integration is gonna arrive, it just said it will be before the end of the year.

And of course, users will need powerful processors to make all this work.

That means you’re gonna need an iphone 15 Pro or Pro Max or an ipad or Mac with that M series Chip Brad.

Well, look, uh I, I don’t need any more summaries on how friends dates are going.

But judging by judging by all the weddings that I need to go to this year in the past few years, everybody better be done dating.

All right.

So all these things considered, it’s gonna be interesting too whether or not there’s like a super cycle consumer demand that comes forward as a result mentioned, the iphones that people would have to have in order to make sure that the operating system actually supports some of these new features too.

And it sounds like they’re a little bit mixed on the street in terms of some of the initial reviews that we’ve seen coming out, I saw one earlier today that was looking at in U BS calling this and they put Apple Intelligence in air quotes.

I thought those were fighting words, but I’ll leave that up to the street to spar on that too.

The street, those are fighting words for sure, Brad, I knew you’re asking just the right question because now how do consumers actually feel about this?

Right?

You gotta test drive these features, do they work as advertised?

And then to your point, how many folks feel like?

Ok, I am really curious, I’m interested, it’s enough for me to upgrade, you know, I I had Paul Meeks on my show yesterday.

So obviously, Paul has been covering tech for a long time.

He’s been investing tech for a long time.

I think Paul and, and I’ve known Paul for a while.

I think he was kind of cautious and skeptical about whether this really jump starts an upgrade cycle.

I, I kind of pushed back on Paul and I think maybe that, what the bulls might say is, you know, I’ve seen estimates out there, Brad that something like 40% of iphone users are in device that’s more than four years old.

In other words, there’s a lot of old iphones out out there and it might not take that much to get people to upgrade.

If you just Sprinkle a little A I features in there, I’ll give you a new faster processor, you know, better camera.

That’s what we would all expect come in the fall.

When, when, when Apple doesn’t make that announcement in September is, is that enough to jump start a cycle?

We’ll find out as I check to see which model I have.

I’m pretty sure I’m on the 12 max.

So it feels like a personal attack here when they’re saying you guys need these new features.

We’re looking at you, Brad.

Anyway, Josh, we’re also watching the reactions from other billionaires out there, Elon Musk out Apple, I mean, what’s going on here?

It’s a new partnership with Jack Chat GP T and he wrote on X formerly Twitter that if Apple integrates open A I at the OS level, Apple devices will be banned at his companies.

I mean, he’s calling it an unacceptable security violation.

So how Apple protecting the data here?

Well, iii, I think a couple of points, one is Apple, clearly yesterday, a big theme was privacy, privacy, privacy, right.

That was clearly a theme they were hitting.

I don’t think that’s too surprising if, you know, Apple, you know, that is a core value.

Um, and Cupertino goes back to Steve Jobs, he used to hammer that as well.

And that could be kind of a differentiator, right?

I mean, they clear, kind of set themselves apart from the competition.

We know privacy, security, Brad.

That’s something Brad and Josh care a lot about.

Um, with Elon specifically, I thought that was interesting because his reaction was very fair, very quick, very heated and I don’t know exactly what’s going on there.

I don’t know, Brad, if maybe Elon just sees open A I in this point and it’s a little bit like, you know, waving a red flag in front of a bull.

There’s just so much bad blood.

He, you know, Musk has sued open A I which is company co founded.

So I don’t know if that relationship obviously has gone completely south.

You know, who knows though how that develops.

I know these are, they’re kind of fighting words right now with Musk.

But what, what’s interesting is you don’t know how that develops.

Like, for example, Tim Cook.

Now, listen, he’s told you, I got it partnership with Sam Altman and open A I.

But you can foresee, you know, a, as this progresses, you can imagine Apple has partnerships and relationships with all kinds of models that the open A I maybe Google, maybe anthropic and why not, why not Musk as well?

Who has his own?

A I start up Xa I or one that just allows users to pick which A I they wanna use.

I mean, it’s really just to your point, it’s just a potential starting point and really seeing exactly where the uptick is from the uh the amount of consumers that are either willing to pay in or want a free type of experience with so much of the generative A I, at least on the initial outset of what we’re hearing are going to be some of the features.

I know another interesting question which is gonna is when we talk about the partnerships that came out yesterday, we don’t know what the economic relationship is with between, let’s say apple and open A I.

How’s that working?

Um We don’t know which way the money is flowing, you know, is Tim Cook saying a check to Sam Altman is Sam Altman sending one to Tim Cook.

You could see it if, if, if, if Sam Altman knows, listen, you know, I can’t train my models on your data if not getting data.

Maybe Altman thinks, well, at the very least you can send me a check in the mail but we, we don’t know yet.

I expect someone breaks that news at some point.

How, how exactly the economics of this work?

Josh Fun shot to start off today’s show all things Apple here, Josh Lipton, you can catch him at 3 p.m. market domination.

Let’s get right to our top story this morning.

It is Apple.

After almost two years of sitting out of the artificial intelligence frenzy, Apple finally made its big splash, the company announcing a slew of A I tools coming to its platform.

So let’s get to Yahoo finances, Madison Mills who has the ultimate guide for all things Apple this morning.

Hey, Matty.

Hey, Brad, it’s definitely all about Apple.

As you said, here are three things that you need to know from Apple’s big announcement.

First of all, the A I announcement, it’s getting personal.

The theme was A I for the rest of us.

But what does that mean?

Right.

Well, it’s going to prioritize messages, notifications and offer proof reading, writing tools.

You can suggest a theme, a tone change, for example, that also result in a major upgrade for Siri Apple’s virtual assistant.

Apple calling this the year of the start of a new era for Siri.

Now, number two, all of this is going to be made possible with Apple’s new partnership with Open A I that is going to allow the company to integrate chat GP T into the iphone via Siri, which will lead to all kinds of A I powered features.

For example, it will allow users to integrate A I into the in the photos that you could take a picture of your living room and get Decor advice.

Thanks to A I and the company did promise that it will ask user permission every time chat G BT is involved, which is going to be critical for number three here, the key issue privacy, it’s all about privacy.

That was definitely a theme throughout the announcement out of position, the new A I features as privacy oriented, the company says its architecture enables it to be aware of your personal data without outright collecting it.

But as investors are for now not seeing a lot of their expectations met off of that news, those high Wall Street expectations for the announcements appear to have been missed with shares under pressure this morning looking like they’re at the flat line here after closing down over 2% yesterday.



Source

Related Articles

Back to top button