AAPL: Apple Finally Unveils Gen AI Model “Apple Intelligence.” Investors Dump the Stock.

iPhone maker presented an underwhelming AI strategy, which failed to satisfy investors’ hunger for a game-changing product.

• Apple stock AAPL tumbled after the company’s widely anticipated annual event — Worldwide Developers Conference (WWDC) didn’t exactly bring a whole lot of innovation. The event’s highlight failed to go beyond anything investors had been rooting for. Shares took a roughly 2% dive to wrap the trading session at $193.12.
• The iPhone maker finally revealed its hand in the burgeoning AI space. Apple Intelligence — the company’s bet on generative artificial intelligence — is “the personal intelligence system that puts powerful generative models at the core of iPhone, iPad, and Mac.” The announcement met analysts’ expectations. And there was also a partnership with OpenAI where ChatGPT is getting integrated into Siri.
• The new AI capabilities, including the “Genmoji” ability to create custom emojis, intend to spur demand for new iPhones. Existing users aren’t so much of a target group — Apple Intelligence will be available only on iPhone 15 Pro and Pro Max, which makes up about 5% of the iPhone user base. And with that, Apple presented an underwhelming AI strategy a year and a half after OpenAI launched ChatGPT.