Tesla Inc. investor Ross Gerber anticipates a fresh upgrade cycle for Apple Inc. AAPL following the highly-anticipated launch of Cupertino's AI solutions for iPhones, with more details expected to be revealed at the Worldwide Developers Conference (WWDC) in June.
What Happened: Despite CEO Tim Cook keeping his cards close to the chest in a post-earnings call on Thursday, Gerber believes "iPhone AI" has the potential to rejuvenate Apple.
In a post on Thursday, Gerber expressed his belief that the upcoming AI feature in Apple’s new iPhone will stimulate a new wave of upgrades.
This comes after Cook, hinted at significant AI developments during the company’s Q2 2024 earnings call, without providing specific details.
Apple has been quietly making progress on the AI front with new models optimized for small devices like phones and laptops. Until then, though, it is looking at both Google and Microsoft-backed OpenAI to license either Gemini or GPT for iPhones.
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Why It Matters: Apple’s iPhone sales have been struggling recently, with a 16% drop in the first three months of 2024.
Apple has also acquired Canadian AI startup, DarwinAI, and has been working on “Project Graymatter,” a suite of generative AI features and services set to debut with iOS 18 this fall.
Cook, too, has increased his focus on China – he visited the country recently in what Deepwater Asset Management's Gene Munster thinks is a message to the Xi Jinping administration that "Apple is committed to China."
Price Action: Apple's stock was up 6.06% in premarket trading on Friday after closing at $173.03 on Thursday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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