[ad_1]
Since we’re about halfway through spring, we expect news and rumors about the next iPhone to start ramping up. While we expect the iPhone 16 to perform well as per Apple’s usual track record, some industry analysts have doubts. According to a new report, some analysts feel that the iPhone 16’s lack of AI may cause Apple’s stocks to dip.
When it comes to business, profits aren’t the only important number. Another important number is the stock price. Investors pour a lot of money into companies, and said companies do a lot to keep the investors happy. Otherwise, they will not be investors anymore.
For example, when Google originally unveiled Bard (now Gemini), it made a factual error. Because of that, numerous investors lost faith in Google’s AI technology, and this caused Google to lose millions of dollars in the stock market.
The iPhone 16’s lack of AI could cause Apple’s stocks to dip
Right now, Apple is preparing to bring its own flavor of generative AI. Seeing how much of a splash the technology made really pushed Apple to pivot. However, we don’t expect the iPhone 16 to have very powerful AI capabilities. That may be reserved for the iPhone 17 Pro. So, this year, we expect to see the usual slew of iterative hardware updates and a few software updates with the iPhone 16.
That’s all fine and dandy; however, investment firm J.P. Morgan is not so optimistic. According to a note seen by Apple Insider, J.P. Morgan dropped Apple’s target stock price from $225 per share to $210 per share. It’s important to note that this does not mean that the stock price has dropped to that point, and it does not mean that this is guaranteed. However, this is just a projection.
This projection makes sense
We all know how this goes; most Android OEMs, with the exception of Samsung, do everything they can to reinvent their new phones. Meanwhile, Apple tweaks a few things in the hardware and software, slaps a new number on the name, and sells its new iPhones in volume. Apple has its core fan base pretty much figured out. However, the introduction of generative AI brought forth a massive shift in the winds.
AI is the latest and greatest thing, and companies are starting to ingrain it into their smartphones. This has been going on with several Android OEMs, and it seems that Apple is now playing catch up. This doesn’t bode well for investor confidence, as Apple is now behind the trends (oh no!!).
This could cause investors to be a bit weary about Apple’s future. Sure, iPads and iMac computers (including Macbooks) are extremely popular, but the majority of the company’s income is from the iPhone. If Apple struggles to keep up with the competition, then it could lose greatly in the stock market.
[ad_2]
Source link