Apple shares moved lower in early Monday trading after a top Wall Street analyst issued a rare downgrade for the tech giant, citing concerns that its new push into artificial intelligence will be slowed by muted handset demand.
Apple (AAPL) , which unveiled its version of AI, dubbed Apple Intelligence, in early June, is looking to leverage its dominance in the smartphone market to drive consumer demand for the new technology. The tech giant launched its latest version of its signature iPhone in September, and promised to rollout AI-powered features over the coming months.
Early reports, however, show overall demand for the iPhone 16 remains muted compared to previous launches, while rival smartphones from both Samsung and China-based rivals are taking larger chunks of sales from key markets in Asia.
Some analysts, however, see the new iPhone 16, and the likely-improved iPhone 17, driving an upgrade ‘supercycle’ that will boost handset sales and accelerate the take-up of Apple Intelligence technologies.
Apple is reportedly set to unveil its first Apple Intelligence features later this month, with the launch of its new iOS 18.1 operating system on Oct. 28, giving iPhone 16 and iPhone 15 and iPhone 15 Pro users who update their software first access.
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