Apple's AI Push Falls Flat for Wall Street Analysts
Apple's latest AI push failed to impress Wall Street analysts at its Worldwide Developers Conference. Analysts remain cautious about how these new features will impact iPhone demand.
Barclays maintained an 'Underweight' rating on Apple with a price target of $253, implying a roughly 15% discount from the stock's Friday closing price. The firm stated that Apple's AI offerings are 'interesting but not necessarily transformative,' and the updates announced are 'incremental and not enough to drive an upgrade cycle' for the iPhone.
UBS also weighed in on Apple, keeping its 'Neutral' rating with a price target of $296. UBS believes that while these features add value to the user experience, they do not expect them to be a 'material driver' of iPhone demand ahead of the expected launch of a foldable device in the fall.
Apple showcased its AI overhaul branded as Apple Intelligence at WWDC, which included advanced Siri AI features and AI-powered writing tools. However, these new features will not launch initially in the European Union or China, according to the company's official website.