According to the latest report from Wedbush Securities analyst Dan Ives, Apple is experiencing a "critical turning year" that could change its future. Despite a recent decline in Apple's stock due to competitive pressures in the market, analysts remain optimistic about its prospects, believing that Apple has a significant advantage in the field of artificial intelligence (AI).
Ives emphasized that Apple has a strong user base of approximately 1.5 billion iPhones and 2.3 billion iOS devices, which provides a unique advantage in the AI competition. They predict that in the coming years, about 20% of the population will engage with AI through Apple devices. This perspective reflects that Apple is not only a giant in the smartphone market but also a potential leader in the AI sector.
Image Source Note: Image generated by AI, licensed by service provider Midjourney
Apple's recently launched "Apple Intelligence" is still in development, and although it is not fully mature yet, analysts believe it will become a new growth engine for Apple. It is expected that as hundreds of developers utilize this technology to create new applications, Apple will experience a "growth revival" in service revenue, including revenue from the App Store. Despite a decline in iPhone sales in the fourth quarter of 2024, analysts noted that this situation has been mitigated by sales growth in the U.S. and other markets.
However, the rollout of Apple Intelligence has not been smooth. Reports indicate that Apple still has shortcomings in certain features, particularly in writing and editing assistance. Last week, Apple also paused an AI feature that summarized major news headlines incorrectly. Nevertheless, Ives and Wedbush are optimistic about 2025, viewing it as a critical moment for Apple and its CEO Tim Cook to further develop their AI strategy.
Despite facing challenges, Apple still has the opportunity to leverage its vast user base and upcoming AI technology to achieve growth, potentially altering the current market landscape.