Apple’s WWDC 2024 Sneak Peek: Generative AI Strategy With Privacy Focus

As Apple Inc (NASDAQ:AAPL) gears up for its highly anticipated Worldwide Developers Conference (WWDC) on June 10-14, 2024, investors are buzzing with excitement over what the tech giant has in store.

Goldman Sachs analyst Michael Ng, CFA, has provided a sneak peek into what we can expect, particularly focusing on Apple’s AI strategy.

Ng has set a bullish 12-month price target of $226.00 for Apple stock, representing a 17.6% upside from its current price of $192.25. This optimism is driven by the belief that Apple’s AI features, combined with other ecosystem investments and hardware upgrades, could increase upgrade rates and drive upside to product estimates.

Apple’s Gen AI Strategy

One of the key highlights of WWDC 2024 will be Apple’s showcase of its generative AI strategy. Apple is expected to embed generative AI tools within its core applications like Safari, Photos, and Notes. This move is aimed at providing practical tools for users and leveraging a combination of on-device and cloud processing, Ng says.

While competitors like Galaxy S24 and Pixel 8 offer similar AI features, Apple’s differentiation lies in the availability of AI features across its entire suite of products and its focus on consumer privacy.

Also Read: iPhone 16 Destined To Have The World’s Thinest Bezels? New Leak Reveals It Could Outshine Current Record Holder Samsung Galaxy S24

Apple’s longstanding investment in iOS and other device operating systems is aimed at growing its installed base and minimizing churn.

Partnership with OpenAI

Apple’s collaboration with OpenAI to power an AI chatbot further highlights its commitment to AI innovation. This partnership, while beneficial to both parties, limits the ability of OpenAI to monetize through premium subscriptions or advertising, thereby enhancing Apple’s competitive position in the AI space.

Apple is also ramping up production of its M2 Ultra processors, which will be used in its AI servers, with data center capacity doubling, according to SemiAnalysis.

As Apple continues to innovate and differentiate itself in the AI space, investors can expect exciting developments at WWDC 2024. With a strong focus on generative AI and its impact on user experience, Apple is poised to maintain its position as a leader in the tech industry.

Read Next: Nvidia’s Race With Apple, Ark Invest’s Big Moves And AI’s Future In Smartphones: Top Updates This Week In Artificial Intelligence

Photo: Shutterstock