Apple’s upcoming release of Apple Intelligence is attracting attention in the financial world. This new artificial intelligence by Apple promises significant enhancements, leveraging the seamless integration of hardware and software on its devices.
Apple Intelligence, set to debut on October 28 with the release of iOS 18.1, is expected to bring advanced capabilities to Siri, improve communication through generative text and images, and streamline photo editing. The rollout will begin with the latest iPhone models and gradually extend to other devices over the following months.
Image source: Getty Images.
How will Apple Intelligence impact the business?
Apple Intelligence is expected to boost iPhone upgrade rates in the short term, with only the latest iPhone models capable of supporting its features. Positive feedback from early adopters could drive more users to upgrade sooner, potentially leading to better-than-expected sales for Apple.
The gradual rollout of Apple Intelligence features could sustain demand over several quarters, providing a long-lasting impact on iPhone unit sales. This could position Apple to capitalize on its services business through the monetization of AI features.
The long-term potential of Apple Intelligence
Apple’s approach to privacy, with features like Private Cloud Compute to process data on-device, sets it apart in the AI landscape. The company’s ability to monetize AI services into a sustainable revenue stream presents significant opportunities for growth.
While Apple’s stock currently trades at a premium valuation, the potential for continued revenue growth from AI services supports its value. With a strong focus on services and innovation, Apple remains a promising investment.
In conclusion, the public launch of Apple Intelligence on Oct. 28 may not have an immediate impact on stock performance, but the long-term prospects make buying Apple stock before the unveiling a strategic move for investors.
