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Apple Intelligence: Elevating Market Position and Growth


  • Apple stock soars to record high: Morgan Stanley bullish on AI push, raising price target and designating Apple a "top pick."

  • Apple Intelligence sparks iPhone upgrade wave: New AI tech limited to older devices, analysts predict surge in sales to reach compatible users.


By Jason Alexander, Rachmat Rayyan Naufaldi Putra, Vala Kalinda Salsabila, and Nadinda Arindra Ramadhan.

July 12, 2024 at 16:30 GMT+7


The “Tech Giant” Apple has reached a new milestone, with shares rising by 2.5%. Apple’s focus on boosting device sales is reflected positively in its stock levels. Its rapid AI intelligence advancements created successful incentives to induce customers to upgrade Apple devices to access various technology updates.


Additionally, the company’s continuous hardware and software integration innovation has strengthened its market position. As a result of the substantial growth, Morgan Stanley increased Apple Inc.’s price target from US$216 to US$273 and named it a “top pick” stock.



The future outlook for Apple remains strong, driven by its commitment to cutting-edge technology and expanding its product ecosystem to meet growing consumer demands.


Craig Federighi, senior VP of software engineering at Apple, delivers remarks at the start of the Apple WWDC on June 10, 2024 | Source: WIRED


Apple's launch of Apple Intelligence signals a strategic shift, aiming to compete directly with AI giants like Google and Microsoft's OpenAI. This innovative tech incentivizes device upgrades to unlock its full potential, fostering customer loyalty and driving sales.



Moreover, the seamless integration of AI into Apple's ecosystem enhances user experience and satisfaction. This move coincides with Apple's market value reaching a record US$3.62 trillion, solidifying its global dominance.


The synergy between Apple Intelligence and device sales presents a promising avenue for the tech giant's continued growth. Analysts believe this strategy will not only boost sales but also strengthen Apple's position as a leader in the tech industry.


Apple’s WWDC event in June. | Source: Apple


Morgan Stanley analysts emphasized that Apple Intelligence will play a significant role in increasing iPhone and iPad sales. They pointed out that the new technology currently supports just 8% of the iPhone and iPad user base, which is 1.3 billion smartphones.


This indicates significant growth potential. The analysts forecasted the sale of nearly 500 million iPhones over the next two years, raising Apple’s price target from US$216 to US$273. Furthermore, they highlighted Apple’s strong performance in the stock market.



The stock has already surged 20% this year, outperforming the S&P 500 index, showcasing investor confidence and the company’s robust financial health. This optimism underlines Apple’s strategic advancements and market dominance.



 

Sources:

Fox Business

Nasdaq

Reuters

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