Tech

Apple shares soar to record high on promise of new AI features

Published

6 months ago

June 11, 2024

Admin

Apple shares soar to record high on promise of new AI features

Apple shares have risen to a record after it took the wraps off long-awaited new artificial intelligence features, betting that a personalised and understated approach to the technology will win over customers.

A new AI platform called Apple Intelligence was the highlight of the company’s Worldwide Developers Conference presentation this week, which also included updates to its operating systems. The technology will help summarise text, create original images, and retrieve the most relevant data when users need it. The push also includes a revamped version of Siri, the company’s once-pioneering digital assistant.

The shares rose over 6% to a record of over $205 (€190). Investors initially had a tepid reaction to the event, with the stock price virtually unchanged in pre-market trading — a not-uncommon reaction when Apple debuts long-anticipated new features. Shares of some key Apple suppliers had sunk overnight, following the event.

Apple is making a high-stakes bid to catch up with rivals in the booming AI market. After falling behind tech peers such as Alphabet’s Google and Microsoft, the company is counting on a streamlined interface and loyal customer base to regain ground.

“This is a moment we’ve been working toward for a long time,” senior vice president Craig Federighi, who oversees software engineering, said at the event. He described Apple Intelligence as “AI for the rest of us”, alluding to an old slogan about the Mac.

Apple formally announced a partnership with OpenAI. This will let customers access ChatGPT via Siri at no extra cost.

Apple Intelligence will begin rolling out later this year, but some features — including the ability for Siri to precisely control features within apps — will not come until next year. Support for languages beyond English also will not arrive until later.

OpenAI chief executive Sam Altman was at yesterday’s event and wrote on the social media site X that he was very happy to team up with Apple. While the ChatGPT integration will be free, paid subscribers to OpenAI will get extra features. Apple also held talks with Google about using that company’s Gemini feature. It said it plans to support other services later. Ensuring that customer data is secure was a major theme of the presentation. A system called private cloud compute will help keep users’ information safe when it’s being sent to data centres, Federighi said.

Apple Intelligence will also support AI-created emoji called Genmoji and automated photo editing.

Apple’s iOS 18 and iPadOS (its iPhone and iPad software) will get features that improve customisation, productivity and communication. Some additions will include: An upgraded home screen will let users place icons anywhere; App icon colours can also be changed, and they can be tinted when the device is in dark mode; and a new Control Centre includes support for third-party controls and multiple pages of settings.