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Apple (NASDAQ:AAPL) announced a partnership with OpenAI to integrate ChatGPT into its products. Unveiled at Apple’s annual developers conference, the partnershi

Wall Street Reacts to Apple's Annual Developers Conference Announcements

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Apple (NASDAQ:AAPL) announced a partnership with OpenAI to integrate ChatGPT into its products. Unveiled at Apple’s annual developers conference, the partnership aims to bolster Apple's AI capabilities amidst growing enthusiasm for the technology. Investors had speculated about new AI features, with Apple perceived as trailing behind tech rivals like Amazon, and Alphabet.

CEO Tim Cook introduced the "Apple Intelligence" system, intended to enhance Siri and provide personalized offerings, calling it the company’s "next big step." This collaboration with Microsoft-backed OpenAI will allow Siri to interface with ChatGPT, with user permission. Analysts at Oppenheimer predict that the advanced AI features will necessitate the latest iPhone models, potentially driving a significant upgrade cycle in the U.S. and EU by fall 2024.

Alongside the AI advancements, Apple introduced a customizable Control Center on its iOS 18 platform, a new password tracking app, RCS messaging compatibility, and iPhone mirroring on Mac laptops.

KeyBanc analysts noted that while consumers will eventually upgrade, many will delay to save money due to a lack of compelling new features. Third Bridge analysts questioned Apple's strategy for monetizing Apple Intelligence, despite anticipated consumer interest. Bernstein analysts warned the partnership might initially reduce revenue due to potential revenue-sharing agreements and a shift from traditional search queries. UBS analysts commented that the absence of a groundbreaking AI product could negatively impact near-term iPhone demand and investor sentiment.

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