Apple Set to Initiate Consumer AI Revolution with iOS 18.1 Update
Apple Inc. (AAPL) is on the verge of a "consumer AI Revolution" as it prepares to launch its new artificial intelligence system, according to analyst insights.
What Happened: Dan Ives, an analyst at Wedbush Securities, has shared his predictions for Apple's AI advancements on social media platform X. Ives believes that the imminent release of Apple Intelligence 18.1, set for tomorrow, will signify a pivotal moment for the company's direction. He also noted that the next version, iOS 18.2, is expected in December.
According to Ives, this moment represents the dawn of a consumer AI Revolution emerging from Apple's headquarters in Cupertino, setting the stage for what he terms a "supercycle" for Apple, starting with the upcoming iPhone 16. He anticipates strong sales performance for iPhones in the fourth quarter, including September and December guidance.
Ives pointed out that critics of Apple who have underestimated the company's substantial growth—over $1 trillion in market capitalization—have made errors in understanding three key aspects of Apple's evolution: the large installed base and the strong need for iPhone upgrades, the booming services segment and its valuation, and the rising significance of AI in consumer tech.
He stated, "We believe that bears and long-time Apple naysayers, who have overlooked Apple's past $1 trillion+ market cap increase, have fundamentally miscalculated three essential dynamics of Apple's story: 1. Installed base and upgrade demand, 2. Growth and valuation of services, 3. The role of AI in consumer products."
Why It Matters: This optimistic prediction comes amidst contrasting views from analysts. Just last week, a Rosenblatt analyst raised concerns regarding an AI-driven supercycle as smartphone upgrade rates have been declining. Yet, Ives' forecast paints a contrasting picture, one that aligns with the high expectations surrounding Apple's new AI capabilities. This AI system is the result of Apple's focus on prompt engineering to improve accuracy and minimize errors within its AI framework.
In addition, a Goldman Sachs analyst has projected stronger-than-expected results for Apple in the upcoming fourth quarter, leading up to the earnings release on October 31.
Market Performance: Apple Inc. shares closed at $231.41 on Friday, reflecting a gain of 0.36%. In after-hours trading, the stock experienced a slight decline of 0.24%. Year to date, Apple's stock has achieved notable growth, rising by 24.66% according to data.
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed by editorial staff.
Apple, AI, iPhone