Consumer electronics giant Apple (AAPL) has made a lot of hay while the AI sun has shone. And Apple Intelligence, the company’s artificial intelligence application, is driving quite a bit of value at the company. But media reports suggests that there are some “hidden costs” that come with Apple Intelligence.
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Quite a bit of what Apple planned to release with Apple Intelligence is not available yet, even if the first elements are starting to appear. The biggest arrival, featuring ChatGPT, is expected to hit sometime in December.
The so called “hidden costs” apply when you consider that ChatGPT is itself a subscription service, at least in some forms. The report noted that the system settings for Apple Intelligence include a “daily limit” on ChatGPT usage, so perhaps there will be a free component involved as is the case with the web-based version.
In Other News…
Apple is as much hardware as it is software. New reports reveal that Apple is working on a new version of its display technology for the iPad Air, the Studio Display, and the iMac, in the 24-inch size. The biggest difference is the refresh rate, which will be hiked from 60Hz to 90Hz.
For those not familiar, refresh rate is basically how often an image is drawn on the screen. Higher refresh rates tend to give back smoother-quality video; televisions commonly operated on a 60Hz refresh rate, though higher-end models use a 120Hz rate. Apple’s new displays are essentially in the middle of that frequency. Given that the Studio Display has not had an update since launching in March 2022, this is quite a step forward.
Is Apple a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 23 Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 24.055% rally in its share price over the past year, the average AAPL price target of $245.06 per share implies 9.31% upside potential.
