Apple needs to ‘catch up’ on AI despite Gemini news today

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Written on Mar 18, 2024

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Apple is reportedly considering licensing Gemini on iPhones.
Oppenheimer analyst reacts to the news on Yahoo Finance.
$AAPL is down over 10% versus its year-to-date high at writing.

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Apple Inc (NASDAQ: AAPL) is in focus today following news that it plans on licensing Gemini – the Gen AI engine of Google on its upcoming iPhones.

Analyst reacts to the Apple – Gemini news

A potential deal with Alphabet Inc (NASDAQ: GOOGL) is expected to bring new artificial intelligence enabled features to the iPhone.

It’s a “very big deal” for $AAPL because it positions the iPhone as the “go-to device to interact with large language models” in the near term, as per Martin Yang – a senior Oppenheimer analyst.

He’s convinced that AI will turn “Siri” into a “really helpful agent” moving forward.

The Gemini news arrives shortly after Apple gave up on its long-standing plans of launching an electric car to focus more on artificial intelligence as Invezz reported here.

Is Apple well-positioned to capitalise on AI frenzy?

Note that Apple Inc was recently reported working on an AI-enable ads product as well.

Still, Martin Yang of Oppenheimer is convinced that $AAPL needs to “catch-up on building its own infrastructure to train large language models”.

He wants the tech behemoth to tap on the opportunity to “implement on-device AI using Apple silicon”. The analyst made those remarks in an interview with Yahoo Finance on Monday.

The Nasdaq-listed firm is slated to report its current quarter financial results in more than a month from now. Consensus is for it to earn $1.50 a share versus $1.52 per share a year ago. Apple stock is currently down more than 10% versus its year-to-date high.