Apple Inc. AAPL CEO Tim Cook’s first mention of AI during the December quarter earnings call has Wedbush’s Dan Ives excited about the iPhone maker’s prospects going forward.
Positive Momentum: Wedbush’s Dan Ives is bullish about Apple’s potential for growth, particularly in the AI and iPhone sectors. He compares Apple to Meta 18 months ago, implying a similarly explosive growth trajectory.
During the earnings call, Tim Cook highlighted an impressive milestone—Apple now boasts a total installed base of 2.2 billion across iPhones, iPads, Macs, and other devices. This extensive user base provides Apple with a significant opportunity to leverage its AI initiatives.
Despite facing challenges in markets like China, Apple is poised to accelerate its AI efforts, spearheading a new era of growth. Gene Munster of Deepwater Asset Management is also enthusiastic about Apple’s foray into AI, referencing Tim Cook’s historic use of the term ‘AI’ in prepared remarks.
Ives is optimistic about the future of iPhone sales in China, expecting a rebound in the second half of the year despite recent declines. This outlook underscores Ives’ faith in Apple’s resilience and potential for growth.
Strategic Breakthrough: Apple’s recent publication of an AI breakthrough demonstrates its commitment to on-device AI capabilities. This breakthrough enables Apple to run large-language models on devices with limited memory, opening doors to older iPhone models previously excluded from AI advancements.
This significant progress showcases Apple’s innovation and adaptability, particularly in its efforts to bridge the gap between older and newer iPhone models in terms of on-device AI capabilities.
Market Performance: Apple’s share prices closed at $185.85 on Friday, representing a slight decline. Post-market hours saw a further decrease to $185.11. These fluctuations highlight the market’s reaction to Apple’s recent developments and strategic direction.
