Apple Inc. (AAPL.O) inaugurated its annual Worldwide Developers Conference (WWDC) 2024 on Monday, promising a significant emphasis on artificial intelligence (AI) across its product suite. With expectations riding high, the event is set to demonstrate how Apple plans to integrate AI technologies into its ecosystem, including a revamped Siri voice assistant and a potential collaboration with ChatGPT owner, OpenAI.
The stakes at WWDC 2024 are higher than ever. Apple aims to reassure its investors that it remains a key player in the AI race, despite Microsoft’s (MSFT.O) early advances. This year’s conference is more critical as it seeks to solidify Apple’s position in a rapidly evolving tech landscape.
Analysts have pointed out that Apple needs to make AI appealing to its over 1 billion users, the majority of whom are not technology enthusiasts. The challenge is to showcase practical AI applications that can enhance everyday user experiences.
The conference began with Apple showcasing the latest original series coming to its Apple TV+ streaming service, setting an entertaining tone before diving into the technical advancements.
One of the key highlights was VisionOS 2, the latest software for Apple’s mixed-reality headset. This update utilizes machine learning to create natural depth photos and introduces new gestures, enhancing user interaction. The size of the virtual monitor available in Vision Pro was also increased, demonstrating Apple’s commitment to improving its mixed-reality offerings.
Apple announced significant updates to iOS 18, making the iPhone home screen more customizable and enhancing in-house apps. A notable feature introduced is the “lock an app” option, providing users with more control over sensitive information. This feature aims to bolster security and privacy, key tenets of Apple’s user experience philosophy.
Apple has historically utilized AI behind the scenes to power features such as crash detection on its watches. However, it has been less vocal about these advancements compared to competitors like Microsoft, who have heavily promoted their AI capabilities.
Apple’s market position has faced challenges, with Microsoft overtaking it as the world’s largest company by market capitalization in January. Moreover, AI chip giant Nvidia (NVDA.O) briefly surpassed Apple, highlighting a shift in investor focus towards companies at the forefront of AI development.
“Forrester analyst Dipanjan Chatterjee noted, ‘Apple’s early reticence toward AI was entirely on brand. The company has always been famously obsessed with what its offerings did for its customers rather than how it did it.’ He added, ‘But then the AI silence got deafening. All that will change on June 10.’”
WWDC serves as a platform for Apple to showcase updates to its apps and operating systems and introduce new tools for developers. This year’s conference is expected to reveal significant enhancements in how developers can leverage AI within their apps.
One of the most anticipated announcements is the overhaul of Siri. Apple aims to enable Siri to control a wide range of apps, a complex task requiring the assistant to understand user intentions and app functionalities intricately.
In 2018, Apple attempted to make Siri smarter with developer tools for deeper app integration, but uptake was limited. The introduction of generative AI is expected to revitalize Siri’s capabilities. Reports suggest a partnership with OpenAI to integrate ChatGPT technology into iOS 18, potentially transforming how users interact with their devices.
Investors are optimistic that these AI advancements will boost iPhone sales, especially as Apple faces stiff competition in China and a slowing growth rate in the U.S. Dan Eye, Chief Investment Officer at Fort Pitt Capital Group, remarked, “This should translate into a strong hardware refresh cycle for Apple in 2025.” He anticipates that Apple may limit some AI features to newer models, encouraging users to upgrade.
Earlier this month, Apple unveiled a new AI-focused chip in its latest iPad Pro models. At WWDC, the company is expected to provide developers with detailed guidance on leveraging this chip’s capabilities.
There are also speculations that Apple will discuss its cloud computing capabilities. Reports indicate that Apple plans to use its own chips in data centers, a move that could enhance AI features while maintaining the privacy and security for which Apple is known. The recent hiring of Sumit Gupta, a former Google and IBM executive with experience in AI data centers, underscores Apple’s commitment to this strategy.
Using in-house chips for cloud services allows Apple to deploy advanced AI features without relying on external processors, such as those from Nvidia. This approach aligns with Apple’s ethos of integrating privacy and security into its hardware and software design.
WWDC 2024 is poised to be a pivotal moment for Apple as it seeks to redefine its AI strategy and reassure both users and investors of its capabilities in the rapidly advancing tech world. With significant updates to its software, a renewed focus on AI, and strategic hardware developments, Apple aims to demonstrate that it is not only keeping pace with but also setting the pace for innovation in the industry.
