OMG, I can buy a new phone and get a younger sexy new Siri! That knows what I'm thinking! On second thought?
Apple's AI play could add $4 trillion to its market cap, analysts say
The company is set to unveil its Apple Intelligence-capable iPhone 16 models on Sept. 9
By Rocio Fabbro
PublishedYesterday
Apple’s foray into artificial intelligence could have a major payoff for the iPhone maker, somewhere in the range of $4 trillion.
In June, Apple finally unveiled its AI initiative, known as Apple Intelligence — a set of AI-powered features for Safari, Notes, Calculator, and, most notably, Siri for the iOS 18, iPadOS 18, and macOS Sequoia.
At its annual event, held at the company’s Apple Park headquarters on Sept. 9, the tech giant is expected to unveil its iPhone 16 models, which will come loaded with the latest operating software capable of supporting Apple Intelligence. Wedbush analysts, led by Dan Ives, said in a report Tuesday this will mark the beginning of the “consumer AI revolution.”
“We expect developers over the next 6 to 12 months will build hundreds of generative AI driven apps that will be key ingredients in the recipe for success for Apple as its technology stack creates the core building blocks of the consumer AI tidal wave we see coming starting with iPhone 16,” Ives said.
The AI technology being introduced into Apple’s offerings could add between $30 to $40 per share, resulting in more than $4 trillion in added market capitalization, he said. Apple shares closed Monday at $227.18 apiece, bringing the Cupertino, California-based firm’s market cap to $3.45 trillion.
Apple announced after market close Monday that its chief finance officer, Luca Maestri, will be stepping down from the role at the start of next year. He will be succeeded by Kevan Parekh, who currently serves as Apple’s vice president of financial planning and analysis, and has been at the company for 11 years already.
Ives said he expects “a very smooth transition” as Parekh takes over the company’s top finance role on Jan. 1. “Parekh is an Apple insider that has been trained for this role over the years and we expect a seamless CFO transition in Cupertino,” he wrote.
Wedbush’s review of Apple, by the digits:
$285: The analysts’ price target for Apple, with an outperform rating.
90 million+: The number of expected initial iPhone 16 shipments, compared with 80-84 million expected by Wall Street.
240 million+: Projected iPhone sales in the 2025 fiscal year, thanks to the AI-driven upgrade cycle.
300 million: How many iPhones globally have not upgraded in over four years.
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