Latest news with #WorldwideDeveloper'sConference
Yahoo
7 hours ago
- Business
- Yahoo
Apple is about to answer a burning question about its future
Apple is about to reveal what's next for its most important products at its annual Worldwide Developer's Conference on Monday. This year, the stakes are significantly higher than usual. Apple announced its long-awaited push into artificial intelligence at last year's event by introducing Apple Intelligence, a suite of AI-powered features for the iPhone and other products. But delays and underwhelming capabilities have put Apple on its back fo ot. The company has struggled to convince consumers and Wall Street that it's a leader in the crucial technology, which is expected to overhaul the way people work, communicate and find information online. Now, one year after introducing Apple Intelligence, the company is on the hook to prove at this week's Worldwide Developer Conference (WWDC), a key annual event for the company, that it can make a name for itself in the AI space as its chief rivals like Google continue to charge ahead. At this year's WWDC, which kicks off Monday with a keynote address from Apple CEO Tim Cook and other executives at 10 a.m. PT, don't expect Apple to show off a flashy new iPhone or Apple Watch. Instead, the company will outline new capabilities for its current devices that lay the foundation for where it could be going next. 'WWDC, from a developer conference perspective, is maybe more interesting than others,' said Carolina Milanesi, president and principal analyst at technology analysis firm Creative Strategies. 'It does give consumers a peek as to what they can expect coming to whatever device that they already own.' How much or how little those software updates incorporate Apple Intelligence could be telling. Apple did not immediately respond to CNN's request for comment regarding its WWDC plans and AI strategy. Apple's AI struggles are larger than just a product delay. The bigger issue is that Apple's current AI tools don't offer experiences that are notably different from what you can get elsewhere. Apple Intelligence can summarize text messages, identify real-world surroundings with the iPhone's camera, erase unwanted objects from photos, rewrite emails and prioritize notifications. But those features are similar to capabilities offered by other companies such as Google, OpenAI and Samsung. In fact, rivals like Google and OpenAI are already moving one step further with technology they claim can execute tasks for consumers rather than just answering questions or generating summaries. There are benefits to waiting; Apple has largely been able to avoid the embarrassing AI gaffes of its rivals, with one exception. Apple is also known for popularizing new technologies rather than being first, as was the case with smartwatches and tablets, two categories it now dominates. But Apple has yet to prove it can do the same with AI. And it doesn't sound like that's going to change at WWDC, according to Bloomberg's Mark Gurman, who wrote the event 'may be a letdown from an AI standpoint,' citing 'people within the company.' However, the report did say Apple may open its models to developers so that non-Apple apps can incorporate text summarization and its other AI-powered features. The company may also announce an AI-powered battery management tool, according to Bloomberg. But Dan Ives, global head of technology research for Wedbush Securities and an Apple bull, isn't concerned about whether Apple makes significant AI announcements on Monday. He thinks Apple has a big opportunity to monetize Apple Intelligence moving forward despite its slow rollout, he wrote in a June 6 report. Google, whose Android operating system is the only major rival to Apple's iOS, has been barreling ahead with new AI tools and services. Its annual I/O developers conference was entirely focused on AI, with the company showing how the tech will be incorporated into everything from its ubiquitous search engine to its popular Chrome browser and Gmail. At that event, Google also announced an upgraded version of its AI-generated video engine that made headlines and raised alarm for its ability to create startingly realistic clips. 'I think it's becoming clearer how far behind they (Apple) are in AI,' Deepwater Asset Management managing partner Gene Munster told CNN in March. Samsung is also said to be partnering with AI startup Perplexity to package its app and digital assistant into its Galaxy phones, according to Bloomberg. This comes after Motorola incorporated AI technology from several companies, including Perplexity, on its new Razr flip phone – further underscoring that the technology could play a bigger role in smartphones. That presents a major opportunity for Apple; it's the world's second-largest phone maker by market share and also the only mobile device company to completely control both the hardware and software of its products. That crucial benefit has long been an advantage for Apple, giving it more freedom to develop exclusive features tailored for its products on its own timeline rather than coordinating with partners. Wedbush Securities estimates that '25% of the world's population will eventually access AI through an Apple device over the next few years,' Ives wrote. But Apple has yet to execute on that potential with AI, and the clock is ticking. 'We need more time to complete our work on these features so they meet our high quality bar,' Apple CEO Tim Cook said in reference to the more personal version of Siri on the company's May earnings call. 'We are making progress, and we look forward to getting these features into customers hands.' There's a growing belief in the tech industry that some new type of device could one day supplant, or at least partially replace, the smartphone. And those devices, unsurprisingly, will largely run on AI. Eddy Cue, the longtime Apple executive that leads the company's services division, even acknowledged this, saying during his testimony in Google's search antitrust trial that 'you may not need an iPhone 10 years from now,' Bloomberg reported. Veteran former Apple designer Jony Ive and OpenAI CEO Sam Altman are also partnering to develop a new AI hardware product, the pair announced last month. Companies like Google, Samsung and Meta are also investing in smart glasses with built-in digital assistants that can identify objects in a person's environment as a potential successor to the smartphone. That doesn't mean iPhones will become obsolete anytime soon, nor does it mean consumers will switch to Android or avoid upgrading because of a lack of new AI features. But in the near term, AI could give Apple another means to encourage iPhone upgrades if executed properly. Apple Intelligence is only supported on newer models, specifically the iPhone 15 Pro and later, meaning customers with older phones must upgrade to use it. Apple touted the iPhone 16 as being 'built for Apple Intelligence' when announcing the device in September. Cook said during Apple's most recent earnings call that year-over-year iPhone 16 performance was stronger in countries where Apple Intelligence was available than those where it was not available, perhaps an indication that its AI efforts are somewhat helping sales. The fact that people carry their iPhones – along with their AirPods and Apple Watch – everywhere they go could give Apple's Siri a leg up compared to rivals like Amazon's Alexa. That is, if Apple does it right. 'The fact that Siri knows me so much more, just because my main driver, from a phone perspective, is an iPhone will make that interaction even more valuable than what Alexa does,' said Milanesi. '(Alexa) sees me in my home context, but doesn't necessarily come with me in the outside world. So that is the potential right now.'
CNBC
22-05-2025
- Business
- CNBC
Here are Thursday's biggest analyst calls: Nvidia, Apple, Tesla, Target, Planet Fitness, Snowflake, Sunrun, Zoom & more
Here are the biggest calls on Wall Street on Thursday: Goldman Sachs reiterates Apple as buy Goldman says it's sticking with the stock heading into its Worldwide Developer's Conference on June 9. "We expect AAPL to demonstrate continued progress toward incorporating AI into its operating systems through developer access to its AI models for app development as well as the potential announcement of Gemini AI integration on iPhones given Alphabet CEO Sundar Pichai's recent comments regarding hopes to finalize a partnership with Apple by mid-2025." Needham initiates Philip Morris at buy Needham says the tobacco company is a market leader. "We are initiating coverage of PM with a Buy rating and $195 PT. PM has already made great strides in transforming towards a smoke-free business and has solidified itself as the market leader in both heated tobacco and nicotine pouches, two of the healthiest categories across the consumer landscape that carry a higher margin profile relative to combustibles." Bank of America downgrades Target to neutral from buy Bank of America says the outlook is "uncertain" following earnings on Wednesday morning. "We downgrade TGT to Neutral (from Buy) and lower our PO to $105 (from $145) based on 12x our lowered F27E adj. EPS of $8.00. Despite valuation near 10-year lows, we see increased uncertainty as top-line weakness continues and the timing of comp recovery gets pushed out, with softer sales driving higher markdowns and thus incremental margin pressure for TGT." Goldman Sachs reiterates Snowflake as buy Goldman is sticking by its bullish call on the stock following earnings on Wednesday. "Stepping back, we're increasingly positive on Snowflake evolving into a broader data operating system that manages everything from ingestion to analytics to data sharing to AI workloads — backed by accelerating product velocity — augmenting our conviction in the company's ability to durably sustain mid-20's growth at-scale with best-in-class FCFM's [free cash flow models]." Oppenheimer reiterates Nvidia as outperform Oppenheimer says it's bullish on the stock ahead of earnings next week. "NVDA remains best positioned in AI, in our view, benefiting from full-stack AI hardware/software and unique rack-level approach. Reiterate Outperform and $175 target." RBC upgrades Dana to outperform from sector perform RBC says the auto parts supplier is "misunderstood" and undervalued. "Finally, sentiment around tariffs appear to be improving and for Dana specifically, exposure is lower versus auto peers." Macquarie upgrades Xpeng to outperform from market perform Macquarie upgraded the China EV company following earnings on Wednesday. " XPeng continues to execute ahead of expectations in a difficult domestic EV market." JPMorgan upgrades Urban Outfitters to overweight from neutral JPMorgan upgraded the lifestyle retailer following earnings on Wednesday. " URBN maintains three fashion-forward brands, strong ecommerce penetration and a healthy real estate portfolio in key metro markets." Citizens JMP initiates Core Scientific at market outperform Citizens says the bitcoin miner is well positioned. "Emerging from bankruptcy on January 16, 2024, Core Scientific possesses a power load capable of adding significant shareholder value." Stifel upgrades Planet Fitness to buy from hold Stifel said in its upgrade of the gym chain that it sees several positive catalysts ahead. "We upgrade PLNT shares to Buy from Hold and raise our 12-month TP to $120. Recent results suggest gross joins have stabilized, and we believe there are several potential catalysts to keep comparable sales in the mid-to-high single-digit range over the next couple of years." Bernstein initiates Expand Energy at outperform Bernstein says the gas producer is well positioned. "We initiate coverage on Expand Energy (EXE) with an Outperform rating — the dominant gas producer in the pivotal gas basin, Haynesville." Piper Sandler reiterates Tesla as overweight Piper says it's sticking with the stock ahead of its robotaxi launch. "TSLA's recent run is due to multiple expansion; all eyes are on the robo-taxi launch." BMO downgrades Sunrun to underperform from market perform BMO said it's concerned about solar tax credit changes if revisions are made to the latest tax bill being floated by Congress. "Downgrading RUN to Underperform and reducing our target price to $4/share from $9/share. Revisions to the 'One Big Beautiful Bill Act', if adopted, suggest to us that RUN's ability to claim the solar ITC [investment tax credit] on residential solar leases under Section 48E in FY 2026+ is in jeopardy." Citi initiates Solaris Energy Infrastructure as buy Citi says the energy company is a data center beneficiary. "We initiate coverage on SEI with a Buy/High Risk rating." KeyBanc upgrades United Rentals to overweight from sector weight KeyBanc said the equipment rental stock has an attractive entry point. "We attended URI's Specialty Rental Analyst Day in Ridgefield, NJ, where management showcased its ability to drive outsized market share gains through leveraging the scale of its industry-leading fleet size and its differentiated onestop-shop portfolio, including high-value niche Specialty offerings." Williams Trading downgrades Canada Goose to sell from hold William says it sees too many headwinds for the retailer. "While the brand's product offerings are beginning to be diversified, Canada Goose is not a luxury brand. Luxury brands sales are driven by great compelling product, a great brand strategy, and weather does not generally materially impact sales." Melius downgrades Marvell to hold from buy The firm says it sees too many negative catalysts for Marvell. "This call just hasn't worked out. We are not saying there is a lot of downside in a stock that is down 46% YTD but there is a risk that shares stay rangebound and/or do not perform as well as the bulk of our semis and hardware coverage for the rest of 2025 and 2026." Needham upgrades Zoom to buy from hold Needham said in its upgrade of Zoom that it's finally utilizing its pricing power. "We believe the company is at an interesting inflection point where revenue headwinds from Online are easing, dilution from stock-based compensation has peaked and the share count can decrease with buybacks moving forward, and finally the pricing power of the business may be returning due to new embedded AI functionality as evidenced by the latest price increase for Online taking effect June 1st."
