Apple Inc.'s AAPL upcoming Worldwide Developers Conference, or WWDC, is increasingly key to deciding where the Tim Cook-led company lands amid the ongoing computing shift due to artificial intelligence (AI.)
What Happened: As we inch closer to WWDC, scheduled to kick off on Monday, analysts are underscoring just how important this is for Apple's future.
In an interview with CNBC, Alex Kantrowitz underscored that the AI revolution that is changing the face of several industries currently is a "big deal" and a "computing shift." What Apple does now will decide where it lands, going forward.
"Computing shifts have definitely created winners and losers in the past. And the companies that have won have been the ones that have said ‘Okay, we have the fundamentals, but we're willing to sacrifice the fundamentals of today to build the computing era of tomorrow.'"
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Cook, under whose leadership Apple has been making quiet moves in the AI industry by acquiring companies like Darwin AI, has his task cut out in the months to come, ahead of the crucial iPhone 16 launch.
Not only is Apple facing increasing competition from Google and Samsung when it comes to AI features aimed at consumers, a renewed and revitalized Huawei Technologies is becoming a tough rival in the critical Chinese market.
"What we need to see from Apple is just this vision ahead, saying that we know this [AI revolution] is coming, we're serious about it, and we're building for it."
Why It Matters: Speaking about the importance of Apple's AI strategy, Kantrowitz also highlighted a change in how we interact with our phones.
"We're in the middle of moving from tapping on our phones to starting to talk to our phones and talk to our devices," he added, underscoring the importance of voice.
It's worth noting that Apple has plenty of experience when it comes to voice – its Siri launch 13 years ago led to a massive change in the personal assistant segment, forcing rivals like Alphabet Inc.'s Google, Samsung Electronics Co Ltd., and even Amazon.com Inc. to launch their respective voice assistants.
Although Siri's development has seemingly stagnated, analysts believe Apple could supercharge it using AI.
Meanwhile, at WWDC 2024, Apple will introduce “Apple Intelligence,” an advanced AI system for iPhones, iPads, and Macs. This includes features like summarization, reply suggestions, and an enhanced Siri. The updates will be part of new software releases such as iOS 18 and macOS 15, emphasizing device performance and privacy.
Price Action: At the time of writing, Apple's shares were up 0.03% at $194.53, according to Benzinga Pro.
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Photo courtesy: spieri_sf on Flickr
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