Yesterday, we first got word of “Apple Intelligence,” and while it might have seemed like a dose of marketing hubris writ a little too large, it turns out there are some fundamental differences. But that wasn’t all tech giant Apple (NASDAQ:AAPL) had to reveal today, and investors were loving it. Apple shares were up nearly 5.5% in Monday afternoon’s trading session.
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Perhaps the biggest reason is connected to a feature of Apple we all know well: the “walled garden” effect. Apple noted that its artificial intelligence work isn’t related to a broad range of use cases but rather to improving the particular devices it sells. It’s looking for simple ways to do small tasks and maintain battery life. Apple isn’t looking to replace users, it noted, but rather make them better off. And interestingly, there’s a reason for this.
A New Surge in iDevice Sales
So why is Apple putting on this rush to use AI to make its users better off? There’s one particularly good reason – getting access to those AI tools will likely require an upgrade. Anyone who wants to use Apple Intelligence right now will have to upgrade their phone to, at the very least, the iPhone 15 Pro to actually put it to work. Those frugal sorts out there making do with their earlier iPhones will be out in the cold on Apple Intelligence, at least for now.
And it’s likely to work, too; a separate report from D.A.Davidson’s managing director Gil Luria reveals that Apple Intelligence is likely to spur new sales for the upcoming iPhone model line. Luria looks for a 10% increase in the iPhone segment as a result.
What Is the Price Target for Apple?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 23 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 11.63% rally in its share price over the past year, the average AAPL price target of $208.35 per share implies 1.93% upside potential.
