Analysts anticipate significant announcements on Apple’s AI capabilities at WWDC 2024, with expectations of AI-enhanced features for Siri and software. Positive movement in Apple’s shares follows reassuring quarterly reports and predictions of increased user upgrades and App Store revenue.
Apple’s Worldwide Developers Conference (WWDC) 2024 is set to take place on June 10, 2024. Analysts anticipate significant announcements concerning the company’s Artificial Intelligence (AI) capabilities. Apple’s shares have shown positive movement following a quarterly report in early May that alleviated investor concerns about growth and sales in China.
Analysts from JP Morgan and Bank of America Securities predict that Apple will unveil AI-enhanced features for Siri and other software during the conference. These additions are expected to improve productivity and user experience significantly. JP Morgan analysts suggest the focus will be on AI integration that emphasizes privacy, with on-device features rather than cloud-based solutions. They anticipate that this will also spur an upgrade cycle for the iPhone 16, expected to launch later, potentially increasing user upgrades from 15% to 20%.
The AI features are projected to be incorporated across native apps, with developers likely to introduce enhanced AI functionalities for their applications in the future. Revenue from the App Store is expected to rise partially due to these new AI capabilities, as developers may charge more for the advanced features.
While WWDC traditionally centers on software updates, a focus on AI across Apple’s ecosystem is predicted to reassure investors about the company’s competitive stance in the AI space.
