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Don't count Apple out of the AI race

May 25, 2024 - businessinsider.com
Apple has been facing increasing pressure from investors to make its debut in the generative AI space, especially with competitors like Google and Microsoft already having AI-integrated products. Despite CEO Tim Cook's assurances that AI will impact all of Apple's products and services, investors are growing impatient. Analysts predict that Apple will need to showcase its AI capabilities at the upcoming Worldwide Developers Conference in June to appease shareholders.

However, Carolina Milanesi, principal analyst at Creative Strategies, argues that Apple's success has never been about being first to market, but about disrupting existing markets. She believes that AI will be no different for Apple, and that the company's approach to leveraging AI will differ from its competitors. Instead of focusing on direct revenue from AI, Apple will likely focus on integrating AI into its existing ecosystem to add value to its products and services.

Key takeaways:

  • Apple has been under pressure from investors to debut in the generative AI space, with expectations high for the upcoming Worldwide Developers Conference in June.
  • Despite being late to the AI market, analysts believe Apple's success is not defined by being first but by its ability to disrupt markets, as seen with the iPhone, iPad, and Apple Watch.
  • Unlike Google, Microsoft, and Amazon Web Services, Apple's approach to AI will likely be different due to its reliance on revenue streams not directly from AI, but from its existing ecosystem of products and services.
  • Principal analyst at Creative Strategies, Carolina Milanesi, suggests Apple's strategy will involve integrating AI to add value to its existing products and services, rather than focusing on cloud-based AI solutions and monetization.
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