Apple’s slow move on generative AI has investors questioning its strategy, as the tech giant has yet to impact the AI space significantly.
Compared to some of its Big Tech competitors, Apple is developing generative AI products more slowly, making investors wonder if and when the company will fully commit to the technology.
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The Wall Street Journal was informed by Brian Mulberry, an Apple shareholder and a portfolio manager at Zacks Investment Management, that the company hasn’t exactly made a “big splash in the AI space yet.”
Apple may soon be feeling the heat from investors over its slow rollout of buzzy AI products https://t.co/7POfc3ydI5
— Maria Lehmann (@MariaLe98335236) March 1, 2024
Addressing investors
According to Brian, AI is what most investors are excited about. He added that almost all momentum in the market is generally fueled by AI.
Companies like Google, Microsoft, and Meta have been releasing buzzy artificial products at a pace driven by eager investor interest. However, Apple has yet to make any major announcements.
To nobody’s surprise, Big Tech is making big profits from AI.
And also to nobody’s surprise, they have yet to properly create & enforce guardrails.
Same old same, we guess. 🙄https://t.co/VwF7GHWqhx
— Kairos Action (@kairos_action) February 27, 2024
Apple CEO Tim Cook has been eager to emphasize the company’s commitment to artificial intelligence to reassure investors.
According to Cook, the company has been innovating in AI for years and is investing in this area. He made the statement at the company’s annual shareholder meeting. The CEO claimed to have seen incredible “breakthrough potential” for the technology and “transformative opportunities” for users. He also said, “There is no better computer for AI” than the Apple Mac.
Apple CEO Tim Cook told shareholders that the company would reveal its plans later this year, even though he wasn’t ready to provide more details on Apple’s AI development.
Moving ahead
Despite Apple CEO Tim Cook’s assurances about the company’s commitment to AI and its potential, investor concerns remain unabated. Cook may be optimistic, but the fact that Apple’s stock is underperforming its competitors shows how important it is to lead the AI space rather than play in it.
"We believe it will unlock transformative opportunities for our users," said Cook.
Heh, transformative. Get it?
— Milan Lajtoš (@milanlajtos) February 28, 2024
Apple has more incentives to innovate since competitors are adding new AI features to the tech space. However, there are doubts about whether such innovations will significantly impact Apple’s sales, even if they are introduced. The industry is keeping a close eye on Apple, hoping to see if it can turn its AI ambitions into tangible products that appeal to consumers and, more importantly, spark investors’ confidence.
Cook stated that later this year, he looks forward to sharing with them how they will break new ground in generative AI, another technology they believe can redefine the future.
Vision Pro stands out as one of Apple’s notable initiatives into AI, demonstrating the company’s commitment to mapping three-dimensional spaces. However, experts are still cautious about its potential as a significant revenue generator, suggesting its impact on the market may not materialize for some years.
Moreover, investors are getting impatient. Brian Mulberry, client portfolio manager at Zacks Investment Management and an Apple shareholder, said that Apple hasn’t made a big splash in the AI space yet.
He further stated that AI is woven into users’ lives for all sorts of tasks, from everyday to essential tasks. AI allows the Apple Watch to help users track their workouts, automatically detecting whether they’re taking a walk or going for a swim. It also enables their iPhone to call for help if they’re in a car accident.
and then