Apple's Product Event Fails to Generate Significant Enthusiasm on Wall Street

Deep News06-09

Analysts expressed a muted response to what is likely Tim Cook's final keynote as CEO of Apple. The presentation centered on AI enhancements for its voice assistant.

"We do not think investors will be excited by what was announced," wrote UBS's David Vogt in a client note Monday, suggesting the upgrades are insufficient to drive iPhone demand. The iPhone accounts for roughly half of Apple's revenue.

Brandon Nispel of KeyBanc stated he saw "no clear AI monetization signal," only "a slightly improved standalone Siri that still trails other LLMs."

William Power from Baird indicated the new Siri's AI capabilities were "largely in line" with expectations, though he noted they could become "a massive unlock" if executed well.

Apple is encountering headwinds on the consumer front amid rising inflation, wage growth, and declining personal savings.

Michael Wu, an analyst at Goldman Sachs, identified weak consumer demand as a key risk for the company.

"Any macro weakness could reduce demand for Apple's products and services," he wrote to clients on Monday. "Longer replacement cycles due to macro headwinds, increased product durability, or lack of product innovation could negatively impact upgrade demand."

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