Apple (AAPL) shares soared to a record high on Tuesday, riding a quiet wave at the company's Worldwide Developers Conference (WWDC), where CEO Tim Cook and other company executives showed off the company's latest AI features and services.
Yahoo Finance's Julie Hyman speaks with the Morning Brief team to raise the question of how consumers will interact with and use artificial intelligence on their iPhones and other personal devices following the stock's delayed reaction to Apple Intelligence.
For more expert insights and the latest market trends, click here to listen to this entire episode of Morning Brief.
This post Luke Carberry Morgan.
Check out more coverage of Apple and its WWDC announcements from Yahoo Finance.
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Video Transcript
Now, Apple shares surged 7% on Tuesday, adding $190 billion to its market capitalization, the biggest one-day gain for the company since the tech giant unveiled an artificial intelligence system to debate whether consumers are good enough to jump on the AI bandwagon.
Now we're joined here by Julie Hyman from Yahoo Finances.
Hey, guys.
good morning.
And that's why I heard about it in a quick morning newsletter this morning, as I was thinking about what Apple was announcing and what it was different about.
And it's not a question of whether consumers will jump on the AI bandwagon.
Because we're all three sitting here.
We all have an iPhone in front of us and we use it all the time.
So this introduction of AI is really the first time we're seeing people using AI on a large scale in their daily lives.
And after you guys spoke with Gloria from DA Davidson yesterday, that part really stood out to me.
This is what he told you.
This means that if implemented, the number of people using generative AI will increase from hundreds of millions to billions.
And that will drive the iPhone upgrade cycle.
And the thing is, even if they don't drive an upgrade cycle — which they don't — people will still buy new iPhones, and those who have the iPhone 15 will have access to these AI features.
So we consider something like Chat G BT, which many people use.
But I have some doubts about it.
What are they using it for?
Do you use it in your daily life or for work?
right.
And how often do you use it?
You probably won't be using the device all day every day.
So this is my first time.
For example, what is AI4?
What's the killer use case at an individual level?
Do you really not understand?
And Apple is trying to convince us.
Yeah.
I think you summed it up really well, Julie, when you said that proof is part of it.
What, how, and what do we need to do to prove AI to consumers who don't use it in their daily lives right now, what do we need to do to convince them, and ultimately, does that have a trickle-down effect or impact on other big tech companies as well?
right.
And, for starters, there's no guarantee that it will work: if you ask Siri, say, what time you'll arrive at the airport, it might give you the wrong answer, or it might not even ask the question at all, because you just won't think to ask it yet.
Therefore, there is no guarantee that this persuasion will be successful.
But it seems to me that the thing Apple, or anyone else who's trying to get people to use this product, needs to do is get people to show it and use it, because the presentation on Monday certainly drove the stock price up significantly yesterday.
But by Monday, everyone thought it was over.
Many analysts covering the critical public rated it as meeting expectations.
This is enough, but it's not going to wow people, and it's probably not going to dramatically change your life until you start using it all the time.
So just because Apple announced this doesn't mean that every other smartphone manufacturer is going to fall into the ditch somewhere – that they're not going to iterate on top of the existing operating system and introduce their own competitive offering in the form of AI that can be integrated into apps – it all comes down to developers and what they can put into the ecosystem will drive more customer lifetime value that Apple can extract.
And we still don't know what this is for.
For example, what is AI for us as individuals?
I think there could have been a better case for the company and its purpose.
There.
There are many businesses who have told us how they are integrating chatbots into their customer service, using them for coding, and using them to reduce costs.
I believe that in many cases, at the individual consumer level, the case has not yet been made.
If anyone is going to build it, Apple would be a good candidate.
Certainly, there's no reason why other smartphone makers couldn't make similar claims.
