Apple's New Siri Limited by Older iPhones
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Newsfilter
- Limited AI Functionality: Morgan Stanley highlighted that over 850 million iPhones cannot run basic Apple Intelligence queries, resulting in limited use of the newly introduced AI Siri across much of the company's install base, which negatively impacts user experience and market competitiveness.
- Competitive Market Pressure: The Siri upgrade unveiled at Apple's Worldwide Developers Conference aims to compete with OpenAI's ChatGPT, Google's Gemini, and Anthropic's Claude; however, hardware limitations may hinder effective user upgrades, affecting future sales.
- Technical Bottlenecks: Morgan Stanley emphasized that users need 12 GB of unified memory to run the most advanced Siri features, which restricts many older iPhones from supporting new functionalities, limiting Apple's market penetration in the AI space.
- Software and Hardware Challenges: Although AI accessibility ranks among the leading drivers of smartphone upgrades, Morgan Stanley cautioned that the challenge of selling hardware based on software could impact Apple's long-term growth strategy.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 291.580
Low
239.00
Averages
306.89
High
350.00
Current: 291.580
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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