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Apple investors eye OpenAI launch as it plays catchup with competitors

The Apple logo at an Apple store in Pittsburgh, US
The Apple logo at an Apple store in Pittsburgh, US Copyright Gene J. Puskar/Copyright 2024 The AP. All rights reserved
Copyright Gene J. Puskar/Copyright 2024 The AP. All rights reserved
By Tina Teng
Published on Updated
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Apple has officially embraced artificial intelligence (AI), making the announcement at its renowned Worldwide Developers Conference (WWDC).


The long-awaited Apple AI has finally come to light at the company's Worldwide Developers Conference (WWDC24). A highlight of the conference was the tech giant's announcement of its partnership with OpenAI, integrating ChatGPT into Siri and various text-generating tools. 

Apple Intelligence

At Apple's WWDC24, the spotlight was on Apple AI, referred to as Apple Intelligence, which facilitates generative AI technology across its iPhone, iPad, and Mac. 

An AI-powered Siri stands as the most significant upgrade for the iPhone, manifesting as a pulsating light on the side of the screen. The Large Language Model (LLM) serves as the key technology underpinning this function, enabling Siri to enhance its comprehension of your requests by integrating with OpenAI's ChatGPT.

As stated by Apple: "Equipped with awareness of your personal context, the ability to take action in and across apps, and product knowledge about your devices' features and settings." Furthermore, this feature is offered free of charge to users. 

Other features adopting AI technology encompass text proofreading and enhancements. In its press release, Apple asserts that the Apple AI-powered writing tools can "assist you in discovering precisely the right words virtually everywhere you write, including third-party apps."

Additionally, the feature can prioritise notifications based on your personal context, schedule document filing at designated times, summarise emails, generate responses, create images in requested styles, and provide personalised assistance spanning across applications.

Image creation and Genmoji are also noteworthy features integrated with Apple Intelligence. Apple can generate images based on an original image or a sketch with accompanying notes. Apple’s webpage showcases an instance where the app generated a new photo of the Indian dome based on a brief description and a sketch. Genmoji, on the other hand, is an AI-powered personalised emoji tool. Users can input a description, and their phone will generate several options accordingly. 

Furthermore, a significant focus of Apple AI lies in personal security, as Senior Vice President of Software Engineering, Craig Federighi, stated: "We've extended iPhone's industry-leading security to the cloud," and "Private Cloud Compute utilises your data solely to fulfil your request and never stores it, ensuring it remains inaccessible to anyone, including Apple."

Apple's shares fell as new features widely expected

Apple's stocks fell by nearly 2% following its AI updates as these new features were widely anticipated. In fact, Apple's shares have been lower during the WWDC eight times out of 10 in the past 10 years. The world's largest smartphone maker has lagged behind other tech giants in the AI race since last year, with its shares remaining flat this year, while Microsoft's stocks have risen by 14%, and Nvidia has soared by 146%, positioning them as the top three largest market cap companies. 

On a positive note, Apple's shares swiftly rebounded, rising approximately 12% following its first-quarter earnings report. This was attributed to its strong performance in the services segment, coupled with a $110 billion share buyback plan. Currently, its share price is only nearly 3% away from its all-time high of $198, seen in December 2023. 

In April, iPhone shipments in China surged by 52% compared to the previous year, continuing a rebound from March and overcoming the sales downturn experienced in the first two months, during which sales plummeted by 37%. Apple implemented price cuts in May in response to heightened competition from Chinese domestic phone maker Huawei. 

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