Apple surpasses Microsoft as world's most valuable company after unveiling AI plans
What specific artificial intelligence plans did Apple announce during its developers conference keynote?
During its developers conference keynote, Apple announced its push into artificial intelligence with a suite of AI tools called "Apple Intelligence2." The company plans to weave generative AI technology across its native apps and devices, with features ranging from writing-assistance technology to generative AI-generated emojis. Apple also announced a partnership with ChatGPT creator OpenAI to power these features.
What is the significance of restricting the new Apple Intelligence features to iPhones sold within the last year, according to Evercore analysts?
According to Evercore analysts, restricting the new Apple Intelligence features to iPhones sold within the last year is significant because it adds to their conviction that AI can help kick off an iPhone super cycle4. This means that the AI features are expected to drive users to upgrade their iPhones, which should accelerate device replacement cycles and potentially boost Apple's iPhone sales.
How did Apple's announcement affect its stock prices on the days following the conference?
Apple's announcement during its Worldwide Developers Conference (WWDC) led to a surge in its stock prices. The company's stock rose more than 7% to reach a record high on Tuesday following the conference, and continued to rise about 4% at the beginning of Wednesday's trading session. This enthusiasm was driven by Apple's unveiling of its plans to integrate generative AI technology across its native apps and devices. Analysts from Morgan Stanley, Evercore, and Bank of America predicted that the new AI features, called Apple Intelligence, would drive users to purchase new iPhones, contributing to the positive market reaction.