At Apple's (AAPL) Worldwide Developers Conference (WWDC), the tech giant showed off its latest innovations in generative AI and its integration across its product lineup. Angelo Zino, Senior Equity Analyst at CFRA Research, and Dan Flax, Managing Director at Neuberger Berman, appear on Market Domination to discuss the implications of these groundbreaking developments.
Gino expressed enthusiasm, saying he was “pretty impressed” with the new products announced at Apple's WWDC event. He highlighted the key AI features announced in the company's partnership with OpenAI, which he described as a “major upgrade.” However, he acknowledged that “it remains to be seen” whether these features will spur customers to upgrade.
Flax, on the other hand, is a proponent of buying Apple shares, citing the company's “continuous execution of its product cycle.” He sees continued growth through 2025, and believes that new AI-integrated features will “evolve the user experience,” creating more valuable products and increasing the overall value of the company.
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Video Transcript
Today is a big day for NVIDIA, one of the two biggest stocks in the S&P 500 index. Friday's 10-for-1 split caused NVIDIA's stock price to plummet on a per-share basis.
And of course today Tim Cook, with a little help from ChatG BT, unveiled the company's vision for AI Apple Intelligence.
We're looking at each stock featured in the Yahoo Finance Playbook, and we're currently joined by Senior Research Analyst Dan Flax Newberger, Berman, and Research Senior Equity Analyst Angelo Zino CFR.
everyone.
Welcome to the show, both of you.
Angelo.
Let's start with you.
Well, listen to Angelo: if you were an Apple investor, this is a date you've had marked on your calendar for months.
This was Apple's big software show, and it was Tim Cook's show.
He went on stage, Angelo.
As a financial analyst, he unveiled the company's AI vision and strategy here.
We got a comp at the office, Angelo, how was it?
Yeah.
Well, I guess that was expected.
So, um, no, no, it's not like it's awful or anything like that.
But listen, this name is, um, you know, a name that has contributed about 20% to the event over the last five weeks or so.
So, you know, the fact that we haven't seen any movement since the incident shouldn't come as a surprise to most people.
But having said that, I mean, listen, I think, you know, overall we were pretty impressed with their presentation.
So, in some sense, the theory in this respect has really been significantly upgraded.
If you look at some of the other features they announced, you'll see that a lot of them are incremental in nature.
But in fact, many of the AI features announced during the event were seen before they even started talking about AI, such as the new Calculator app and calculator capabilities within the iPad ecosystem.
So, overall, I thought it was pretty good.
Of course, the announcement of Chat G PC came alongside the anticipated theory.
So, overall, I think we've seen a big upgrade here.
Hmm, I guess it remains to be seen whether that will entice new consumers to go out and buy the new iPhone 16 later this fall.
Yeah.
Really, that's a big question, right?
group?
I mean, I've heard analysts coming into the event say that this is very significant, that this is the most important product announcement for the company at least right now, but Dan, is that a reason to buy Apple stock?
I think the reason to buy Apple stock is because the company continually runs through product cycles.
Well, when it comes to iPhone, the installed base continues to grow.
And we expect further growth to occur later this year through 2025.
When you step back and think about this story, it's a continual reinvention.
Thinking about the iPod from over 20 years ago, I think the advancements in Apple Intelligence will greatly improve the user experience and make the device and the broader ecosystem even more valuable.
What we've seen today is the integration of hardware, software and services.
We'll likely know more when the iPhone 16 launches this fall.
So we give the name Angelo back to you and we will always love you.
The company also announced a partnership with OpenAI's Angelo.
Are you interested to know what you think?
Well, what do you think the economic relationship between these two is?
Where do you think the money is going?
Angelo?
Do you think Tim Cook is sending it to Sam Altman, or do you think Sam Altman is sending it to Tim Cook?
Well, to some extent I think there is some kind of relationship there that is based on usage.
To be honest, I don't really know how the money is flowing.
I don't believe Apple is paying a dime to Open AI or Open AIA for this.
But at the end of the day, I think both Apple and Open AI can benefit from this partnership.
Dan, will this really speed up the upgrade cycle?
The upgrades could come in handy over the next few quarters, with the new features expected to be available primarily on the iPhone 15 Pro.
And of course, the overall environment remains challenging for new devices launching in September, but what's important for Apple is the growth, with over 1 billion devices installed, even with a longer replacement rate.
And what we've seen from users is the continued confusion between the Pro and the Pro Max.
And I expect this trend to continue over the coming months.
And when it comes to new features, we'll see what killer apps get developed in the coming months.
Apple is giving developers new tools, new frameworks so they can really create, build and ultimately monetize within the Apple ecosystem.
And in my view, that's the foundation of Apple's growth story.
