- Fans and investors are hoping that AI might help Apple in what is shaping up to be a bad year.
- Apple stock rose more than 4% on Thursday on news that the company plans to revamp its Macs with AI-focused chips.
- Apple watchers are looking for some good news amid antitrust and China sales issues.
Apple investors are likely to jump on any sign of good news in the AI space after the company's tough start to the year.
Apple rose more than 4% on Thursday after Bloomberg reported that the company is overhauling its Mac lineup with a new AI-focused M4 processor.
It was the best day for Apple stock since May, a welcome boost after a number of setbacks weighed on the stock this year. This is also a sign that investors are paying close attention to even the slightest sign that Apple is taking steps towards its AI-driven future.
The company reportedly suffered damage. Decline in iPhone sales in China, one of the largest markets, And it was dethroned as the country's best-selling smartphone maker. The plan was abandoned in February. A 10-year project to produce electric cars.
Apple will also face increased regulatory scrutiny in 2024.
Last month, the US Department of Justice accused Apple of using anti-competitive tactics. illegally maintain a monopoly on the smartphone market By “making it harder or more expensive for users or developers to leave than making it more attractive for users or developers to stay.”
Apple said in a statement to BI at the time that the lawsuit was “false on the facts and law, and we will vigorously defend it.”
A few weeks before that, The European Commission fined the company €1.8 billion, or about $1.9 billion, is related to App Store restrictions on music streaming apps. The European Commission, part of the European Union, claimed that Apple “prohibits music streaming app developers from fully informing iOS users of alternative, cheaper music subscription services.” . Apple said it plans to appeal the decision.
Investor reaction to the M4 processor news shows how important the company's future AI plans are. Some investors and analysts already believe that Apple is lagging behind its competitors in the AI space. However, no specific details have been disclosed, even though the company has reportedly scrapped its electric vehicle project to refocus on AI.
And many people are waiting for them. After Bloomberg reported earlier this month that the company was considering home robots as its next big thing, Wedbush analyst Dan Ives said putting money into such an effort would be a “horror show.” It will be,” he said.
“They need to focus on AI,” Ives told CNBC at the time. “For Mr. Cook, his legacy will be AI. If they pursue robots, that will be an enemy of Apple.”
Apple's annual event WWDC is scheduled to take place from June 10th to 14th this year, and all eyes will be on the company to announce solid AI developments at that time.
