The latest report by Wedbush Securities analyst Dan Ives pointed out that Apple is experiencing a critical turning point, and its future direction will undergo significant changes due to its artificial intelligence strategy. Although Apple's stock has declined recently due to market competition, analysts are still confident about Apple's potential in the AI field, believing that its huge user base will become its core advantage in AI competition. The report analyzes in detail Apple’s strategic layout in the AI field and the possible growth opportunities and challenges brought by the upcoming “Apple Intelligence” technology.
According to a new report by Wedbush Securities analyst Dan Ives, Apple is experiencing a "critical turning point year" that could change its future. Although Apple's stock has declined recently due to market competition pressure, analysts are still optimistic about its prospects, believing that Apple has a clear advantage in the field of artificial intelligence (AI).
Ives stressed that Apple has a strong user base of about 1.5 billion iPhones and 2.3 billion iOS devices, which provides it with a unique advantage in the competition for artificial intelligence. They predict that about 20% of the population will be exposed to AI through Apple devices in the next few years. This view fully reflects that Apple is not only a giant in the smartphone market, but also a potential leader in the AI field.
Apple's recently launched "Apple Intelligence" is under development. Although it is not yet fully mature, analysts believe it will become Apple's new growth engine. Apple is expected to usher in a "growth revival" of service revenue, including revenue from the App Store, as hundreds of developers use this technology to create new applications. Although Apple's iPhone sales fell in the fourth quarter of 2024, analysts noted that this situation has been alleviated by sales growth in the U.S. and other markets.
However, Apple's launch of smart is not smooth sailing. Apple still reportedly has shortcomings in some functions, especially in writing and editing assistance. Last week, Apple also paused an AI feature that sums up major news media titles. Nevertheless, Ives and Wedbush are optimistic about 2025, believing it is a critical moment for Apple and its CEO Cook to further develop its AI strategy.
Despite the challenges, Apple still has the opportunity to achieve growth with its huge user base and upcoming AI technology, which may change the current market structure.
In short, Apple is actively planning to expand into the field of artificial intelligence, and its future development is worth looking forward to. Although the challenges still exist, the success of "Apple Intelligence" will directly affect Apple's competitiveness in the future AI market and ultimately determine whether it can achieve a successful transformation in this critical turning year.