Apple (NASDAQ:AAPL) stock is on the rise as the tech giant makes moves to bolster its artificial intelligence capabilities, with rumors swirling about potential OpenAI integration in iOS 18 and a new iPad Pro with an M4 chip ahead of the Q2 earnings report on May 2nd.
According to Bloomberg, Apple has intensified talks with Microsoft-backed OpenAI about a possible partnership to bring AI chatbot features to the iPhone and iPad. The discussions, which initially took place earlier this year, have reopened as Apple looks to keep pace with AI advancements from rivals like Google and Microsoft.
iOS 18: A Major Redesign with AI-Powered Features
The news comes as Apple faces criticism for lagging behind in the AI race. In response, the company has been actively acquiring AI startups, including France-based Datakalab and Canada’s DarwinAI, to enhance its AI prowess. Apple is also reportedly considering a collaboration with Google to leverage its AI model.
As Apple gears up for WWDC 2024, rumors suggest that iOS 18 will mark the most significant redesign since iOS 7 in 2013. The update is expected to bring a refreshed interface, allowing users to place icons and widgets more freely on their home screens. Additionally, many stock apps, including Notes, Mail, Fitness, Photos, and Calculator, are set to receive design overhauls and enhanced functionality.
Siri, Apple’s voice assistant, is also rumored to be getting a major upgrade, with improved natural language processing and the ability to answer a wider range of questions thanks to an on-device large language model (LLM). The Safari browser may also gain an AI-powered “browsing assistant” to help users find relevant information more easily.
Apple’s M4 Chip: Powering the AI Revolution
In addition to the AI push, Apple is rumored to be launching a new OLED iPad Pro with an M4 chip at the Let Loose event on May 7th. The tablet could be Apple’s “first truly AI-powered device,” leveraging the M4’s neural engine for advanced AI features. The new iPad Pro is also expected to feature a redesigned Apple Pencil with haptic feedback.
The M4 chip’s AI capabilities may also extend to the realm of augmented and virtual reality, potentially powering features in the upcoming Apple Vision Pro headset and future iterations of the device.
Partnerships and Acquisitions: Apple’s AI Expansion
Despite the positive AI developments, Apple is facing challenges on the earnings front. Wall Street analysts project Q2 revenue of $90.34 billion, down from $94.8 billion in the prior-year quarter, due to concerns over iPhone sales in China, declining iPad sales, and softness in the Wearables, Home, and Accessories segment. However, continued growth in the Services segment could help offset these headwinds.
As Apple looks to stay competitive in the rapidly advancing field of artificial intelligence, the company has been actively pursuing partnerships and acquisitions to bolster its AI capabilities. Talks with OpenAI, the creator of the popular ChatGPT language model, have intensified in recent weeks, with the potential for AI chatbot integration in iOS 18.
Apple has also been in discussions with Google about leveraging its AI technology, while the company continues to acquire smaller AI startups like Datakalab and DarwinAI to expand its in-house expertise.
As Apple prepares to report Q2 results and showcase its AI advancements at WWDC, investors will be closely watching to see if the company can maintain its momentum in the rapidly evolving tech landscape. With the stock already on the rise, a strong earnings report and compelling AI announcements could further fuel Apple’s growth in the months ahead.
As WWDC 2024 approaches, the tech world eagerly awaits Apple’s announcements regarding its AI advancements, software updates, and new hardware releases. With the company poised to make significant strides in artificial intelligence, the conference could mark a turning point in Apple’s evolution and its position in the rapidly changing tech landscape.
