Source: Zhitong Finance

On Wednesday, Bank of America reiterated its right$Apple (AAPL.US)$With a “outperforming market” rating, the tech giant will announce its generative AI strategy at next month's developer conference. Analyst Wamsi Mohan wrote that the latest iPhones with artificial intelligence should drive a “multi-year” upgrade cycle similar to what happened at the beginning of the smartphone revolution. Mohan also set a target price of $230 for Apple. He said he expected the adoption curve for artificial smartphones to be faster than the adoption of 5G smartphones, and indicated that the number of upgrades could lead to an incident once every ten years.

Mohan added that although many features of the next iPhone may be released after the Apple Developer Conference, this conference is likely to make artificial smartphones mainstream, especially as conversational artificial intelligence is increasingly integrated into consumers' everyday use. Apple's Annual Developers Conference (WWDC) will open on June 10th. The conference will kick off with a keynote address at 1 p.m. EST.

Apple's AI Strategy: Project Greymatter Leads the Future

The core of Apple's artificial intelligence strategy is Project Greymatter, which aims to integrate artificial intelligence tools into core applications such as Safari, Photos, and Notes, and enhance operating system functions, such as notification systems. Apple's new direction focuses on providing ordinary consumers with tools they can use every day, rather than simply pursuing technical coolness.

Facing from$Microsoft (MSFT.US)$,$Alphabet-A (GOOGL.US)$With major artificial intelligence statements from competitors such as OpenAI, Apple needs to prove to consumers and investors that it is also innovative in the field of artificial intelligence. As a result, Apple plans to spend a lot of time at the conference introducing its new features related to artificial intelligence.

These new features will mostly run on devices to handle less computationally intensive tasks, while more complex tasks will be pushed to the cloud. iOS 18 and macOS 15 will include software to more intelligently decide whether tasks are handled locally or in the cloud. The iPhone, iPad, and Mac chips introduced last year will support the features on most devices, while the cloud component will be supported by the M2 Ultra chip in the data center.

This year, Apple is developing several new features, including voice memo transcription, AI photo retouching, Spotlight search optimization, improved Safari web search, and autoresponders to emails and text messages. At the same time, Siri will also be upgraded to provide a more natural interaction experience based on Apple's own large-scale language model. Siri on the Apple Watch will also be more advanced to handle mobile tasks. Developer tools, including Xcode, will also receive AI enhancements.

One notable feature is bringing generative AI to emojis, which allows the instant creation of custom emojis based on the content of text messages sent by users. Additionally, the iPhone's home screen will also be revised to allow users to customize the color and layout of the app icons.

Smart digest technology will also be introduced to provide users with missed notifications, personal text messages, and summaries of web pages, news articles, documents, notes, and other media formats.

In the process, Apple must assure consumers of its commitment to privacy. For years, Apple has been emphasizing the benefits of device handling and how to better protect data security. Despite sending potentially sensitive information to data centers, Apple will emphasize that its cloud-based AI features will maintain privacy.

To explain this shift, Apple may emphasize that it will not establish customer profiles, which are Google and$Meta Platforms (META.US)$ A practice that has been criticized. Meanwhile, Apple may highlight the security features of its M-series chips, although this may not be enough to win the support of all privacy advocates.

Editor/jayden