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Apple’s (NASDAQ:AAPL) annual developer conference in June has the potential to be a “major catalyst” for the tech behemoth, especially with the unveiling of major artificial intelligence-related announcements, according to Citi.
Shares of Apple experienced a slight increase in premarket trading on Friday.
AI Tool Unveiling and Expanding Capabilities
This week, the investment firm underscored Apple’s preparation to introduce a generative AI tool for iOS developers. This move aims to enhance the functionalities of its Xcode programming software, intensifying competition with Microsoft’s (MSFT) GitHub Copilot.
Reportedly, Apple has been diligently working on this tool for the past year, conducting extensive internal testing and accelerating development efforts in anticipation of its planned release later this year. Moreover, the company is also in the process of integrating AI features into the next version of macOS, Apple Music (for automated playlist creation), and overhauling its Spotlight search feature.
Apple’s Strategic Positioning in AI Landscape
Citi added that the recent AI initiatives alongside Apple’s announced plans to debut various AI tools could position the Tim Cook-led company as a formidable contender against industry giants such as Microsoft, Google (GOOG) (GOOGL), and Microsoft-backed OpenAI.
Based in Cupertino, California, Apple has heightened its focus, resources, and financial investments in generative AI, aiming to bridge the gap with the aforementioned tech firms and others. Reportedly, Apple’s expenditure on AI has escalated to “millions of dollars per day,” and it has even developed its own in-house version of ChatGPT, the OpenAI chatbot that has captured global attention.
Anticipated Announcements and Industry Vision
During the company’s February earnings call, Cook hinted at Apple’s forthcoming revelations concerning generative AI later this year without divulging specific details. “Our MO, if you will, has always been to do work and then talk about work and not to get out in front of ourselves. And so, we’re going to hold that to this as well. But we’ve got some things that we are incredibly excited about that we’ll be talking about later this year,” he stated.
