In July, we heard from Mark Gurman that Apple is internally testing a generative AI chatbot and that the company may make a “significant AI-related announcement” in 2024. Now, the latest analyst note from Ming-Chi Kuo predicts that generative AI features may not come to Apple hardware for consumers next year.
Published on Medium this morning, Kuo’s latest note includes some predictions about Apple’s quarterly earnings performance, how its stock may react in the short term, and some details about its generative AI efforts.
First, Kuo highlights that Apple’s fiscal Q3 is its “off-season” so iPhone sales and overall financial results will be naturally lower. But if services, component cost, and foreign exchange rate changes have been favorable along with a beat on Wall Street’s EPS prediction, Apple stock could see a boost in the short term.
Where does Apple stand on generative AI?
Moving to generative AI, Kuo says because Apple’s progress on the tech is “significantly behind its competitors” he doesn’t expect Apple to say much about the topic.
He continues by saying “At present, there is no sign that Apple will integrate AI edge computing and hardware products in 2024.”
This doesn’t necessarily mean Kuo thinks Gurman is wrong about Apple making a “significant” announcement around AI in 2024, but at this point, Kuo doesn’t see it being likely next-gen AI will launch in Apple’s hardware for consumers next year.
Connecting that to how Apple stock may perform after its earnings call tomorrow, Kuo believes AI will not have a positive impact on the price.
Kuo also believes that with Vision Pro production and shipments expected to be “quite small” for 2024, it also will not benefit the Apple stock price.
Read more on Apple’s AI efforts:
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