Explore why Apple’s WWDC felt underwhelming this year due to postponed AI advancements and what it means for the tech giant’s future.
On Monday, Apple (NASDAQ:AAPL) saw its shares decrease by 1.2%, following an eventful Worldwide Developers Conference (WWDC) that left some investors underwhelmed. The event’s primary focus on Siri’s artificial intelligence highlighted the tech giant’s ongoing development efforts, which are expected to take more time to fully mature.
The conference saw Apple unveiling plans to open up its artificial intelligence (AI) technology to third-party developers, alongside a significant overhaul of its operating systems. Craig Federighi, Apple’s software chief, reiterated the company’s dedication to developing high-quality technology, though he acknowledged that certain features, including improvements to the virtual assistant Siri, require additional refinement.
Apple analyst Dan Ives described the WWDC as “generally boring,” noting that, “the event outlined a vision for developers but lacked any major advancements in Apple Intelligence.” He added, “Cupertino is moving cautiously after missteps in the previous year. While the strategy is understandable, Apple faces a crucial year ahead in their quest to monetize AI. Tim Cook and his team might need to pursue larger AI acquisitions to expedite their AI strategy. We have confidence in Apple’s ability to execute this successfully, but the window to make substantial progress is narrow, which will be a focal point for investors in the coming year.”
Despite the underwhelming AI announcements, Apple showcased several incremental advancements. Among these is a new “liquid crystal” design for their operating systems. They have shifted to using annual names instead of sequential numbers, simplifying naming conventions and unifying their range of devices. The redesigned operating systems for iPhones, Macs, and other Apple products now feature semi-transparent icons and menus. According to Apple executives, these aesthetic updates were enabled by the advanced custom chips in contemporary Apple devices, offering significantly more power than their predecessors from a decade ago.
New features include a “Call Screening” function for iPhones, which automatically answers calls from unknown numbers, questions the caller’s intent, and provides a transcription for the user. Furthermore, Apple is introducing live translation for phone calls and allowing developers to embed this live translation technology into their apps, ensuring functionality even if the other party does not have an iPhone.
Additionally, Apple demonstrated the integration of OpenAI’s ChatGPT with the Image Playground app, underlining their commitment to user privacy by ensuring that user data will not be shared with OpenAI without explicit consent. The Visual Intelligence app is also set to expand its capabilities, allowing users to analyze items displayed on the iPhone screen and find similar products through existing apps.
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