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Apple's Wwdc is Just Around the Corner. Here Are 5 Things to Expect as Ai Comes Into Focus.

June 9, 2024
minute read

Apple Inc.'s iPhone launch events usually dominate the spotlight, but this year, its software-centric World Wide Developers Conference (WWDC) is set to capture Wall Street’s focus.

With Apple shares (AAPL) experiencing minimal growth this year, CEO Tim Cook is under pressure to meet high expectations during his keynote speech on Monday afternoon, which is anticipated to include significant announcements related to artificial intelligence (AI). Given Apple's relative silence on AI over the past year, investors are hoping for a standout presentation.

Dan Ives, an analyst at Wedbush, emphasized the importance of this year's WWDC, stating, "In our view, WWDC represents the most important event for Apple in over a decade as the pressure to bring a generative AI stack of technology for developers and consumers is front and center."

Apple’s relatively low profile in the AI space, despite its extensive use of AI across its business, might have impacted its stock performance. However, Monness, Crespi, Hardt & Co. analyst Brian White believes Apple’s cautious approach has been prudent. He noted, "The most overzealous are now saddled with higher-than-expected [generative-AI] expenses. Apple took a different path. Apple wisely chose not to participate in this gen-AI propaganda campaign. We believe this discipline and foresight have served the company well."

Now, Apple’s moment to shine has arrived. The following are some of the most anticipated announcements expected when the event begins Monday at 1 p.m. Eastern time.

A Potential Partnership with OpenAIWhile Apple excels in designing custom chips and developing its technology, the company is rumored to announce a significant partnership with OpenAI during Monday's event. Dan Ives predicted, "We expect the formal announcement of a flagship OpenAI partnership will consist of an OpenAI Chatbot with exclusive features" leveraging Apple’s on-device large language models as well as cloud-based ones.

Reports from Bloomberg News suggest that Apple will be "outsourcing" AI chatbot capabilities, which allows the company some protection against potential inaccuracies from the AI. Although Apple might not have its AI chatbot technology fully developed for immediate use, this partnership with OpenAI could be a strategic interim solution while Apple works on its own AI offerings.

In summary, while Apple has remained relatively reserved about its AI initiatives compared to its competitors, the upcoming WWDC is set to be a pivotal moment for the company. Investors and analysts alike are eagerly anticipating how Apple will address the rising importance of AI technology and how it plans to incorporate these advancements into its ecosystem. The decisions and announcements made at this event could significantly influence Apple's market performance and investor sentiment moving forward.

Overall, Apple’s strategic decisions regarding AI, including potential collaborations and internal developments, will be closely watched. The outcomes of these decisions have the potential to either bolster the company's standing in the tech world or highlight the challenges it faces in keeping pace with rapidly evolving AI technologies. Thus, the WWDC keynote by Tim Cook is not just another annual presentation but a crucial juncture for Apple's future trajectory in the technology landscape.

Cathy Hills
Associate Editor
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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