Apple Bets on AI to Boost iPhone Sales andMitigateRegulatory Risks
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Apple aims to integrate AI technology like personalized assistants and predictive text into iPhones to boost sales, especially in the competitive Chinese smartphone market.
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Partnerships with AI leaders like Google, OpenAI, and Baidu could allow Apple to add advanced natural language features without building its own large language model.
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Upcoming iOS 18 updates and new MacBooks with fast AI chips could drive an iPhone/Mac "supercycle" upgrade by users wanting new AI capabilities.
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Analyst estimates show Apple's revenue growing 24% in FY2025 if 14.9% more iPhones are sold at a $100 higher ASP, justifying a ~20% share price upside.
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Regulatory scrutiny in China, the EU, and from a recent US DOJ lawsuit present risks, but integrated AI could help Apple mitigate some complaints about its "walled garden."