From Forbes: 2024-06-11 09:53:57

Apple made a big splash with the announcement of its new Apple Vision Pro mixed reality headset at the WWDC23 developer conference, seeking to narrow the AI gap through a partnership with OpenAI. However, the stock fell about 2% in after-hours trading, underlining investor concerns about iPhone demand.

Dubbed “Apple Intelligence,” the partnership with OpenAI aims to rejuvenate Siri, offering generative AI capabilities to billions of iPhones. The new technology would allow Siri to provide better suggestions, answer questions, prioritize notifications, and perform various tasks efficiently.

Elon Musk was not pleased with the Apple/OpenAI partnership, labeling it as an “unacceptable security violation.” Despite Apple’s optimism and CEO Tim Cook’s statement that Apple Intelligence will revolutionize its products, analysts see potential revenue challenges and an impact on iPhone demand in the future.

Apple aims to enhance Siri’s capabilities and user interaction, allowing the voice assistant to remember context and extract information from images for text applications. The company hopes these improvements will usher in a new era of user engagement and productivity with Apple Intelligence at the core.

Apple’s partnership with OpenAI marks a shift towards collaboration in the tech industry to stay ahead in the generative AI realm. Though details of the financial agreement between the two companies are unclear, OpenAI seems to benefit more, gaining access to billions of Apple devices while potentially monetizing the collaboration through revenue sharing models.

Analysts have mixed views on how Apple Intelligence will impact the company’s revenues and stock performance. While some believe that the new technology is crucial for Apple’s future growth and consumer appeal, others predict a slowdown in iPhone sales and a dilution of revenues due to the OpenAI partnership. Apple’s stock performance has lagged behind competitors capitalizing on generative AI advancements, raising concerns among investors.



Read more at Forbes: Apple Stock Down As OpenAI Deal Prompts Elon Musk To Ban iPhones