While Google and Microsoft are racing to integrate artificial intelligence (AI) into their products, Apple is taking a more cautious approach. The Cupertino company has not made any notable announcements in the generative AI field yet, and an analyst predicts that this will continue for the coming year.
Renowned analyst Ming-Chi Kuo published a new note on Medium that provides hints about Apple's approach to artificial intelligence (via 9to5Mac). Kuo suggests that Apple is avoiding the AI hype train and will not add generative AI features to its hardware for consumers next year.
Kuo writes:
At present, there is no sign that Apple will integrate AI edge computing and hardware products in 2024, so it is difficult to benefit the stock prices of Apple and its supply chain.
The analyst believes Apple’s progress in the tech is “significantly behind its competitors”. In contrast, companies like OpenAI and Google have made major announcements in the field. Google has even integrated AI into many of its services, such as Google Maps and YouTube.
There have been rumors that Apple is working on generative AI internally. The cupertino company is apparently developing its own ChatGPT-like chatbot, which is currently being used by the company's engineers. Apple reportedly doesn't intend to release the Chatbot. Instead, the company might weave it into its products.
As a reminder, Apple is holding its quarterly earnings performance call tomorrow. Based on Kuo's analysis, he believes that AI will not have a positive impact on the price of Apple stock after the quarterly earnings performance call tomorrow.
He also predicts that the production and shipments of Vision Pro, Apple’s first augmented reality headset, for 2024 will be "quite small," making it currently challenging for Apple's stock prices to benefit from this factor. Reports suggest Apple has already cut production due to the complexity.
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