Apple’s stock price could fall as iPhone 16 doesn’t have AI

Now that we’re halfway through spring, we can expect news and rumors about the next iPhone to start increasing. While we expect the iPhone 16 to perform well in line with Apple’s usual track record, some industry analysts have their doubts. Some analysts feel the lack of AI in the iPhone 16 could cause Apple stock to fall, according to a new report.

When it comes to business, profits aren’t the only number that matters. Another important number is the stock price. Investors are pouring a lot of money into companies, and companies are making a lot of effort to satisfy investors, he said. Otherwise, they are no longer investors.

For example, when Google first announced Bard (now Gemini), there was a factual error. Therefore, many investors lost faith in Google’s AI technology and Google ended up incurring millions of dollars in losses on the stock market.

Apple’s stock price could fall as iPhone 16 doesn’t have AI

Now, Apple is preparing to introduce its own generative AI. After seeing how popular this technology was, Apple decided to change direction. However, don’t expect the iPhone 16 to come with very powerful AI features. It may be reserved for iPhone 17 Pro. So this year, we can expect the iPhone 16 to receive the usual slew of hardware updates and some software updates.

That’s fine and nice. But investment firm JP Morgan is less optimistic. JPMorgan lowered its price target for Apple from $225 to $210 per share, according to a memo obtained by Apple Insider. It’s important to note that this doesn’t mean the stock price has fallen that much, and it’s not guaranteed. However, this is just a prediction.

This projection has meaning

We all know how this goes. Most Android OEMs except Samsung are doing everything they can to reinvent new phones. Meanwhile, Apple has made some changes to its hardware and software, added a new number to its name, and is selling new iPhones in droves. Apple has pretty much figured out its core fan base. However, the introduction of generative AI has caused a major shift in direction.

AI is the latest and greatest, and companies are starting to build it into smartphones. This has happened with several Android OEMs, and Apple now appears to be playing catch-up. This doesn’t bode well for investor confidence as Apple is now behind the trend (oh my God!!).

This may make investors a little weary of Apple’s future. Sure, iPads and iMac computers (including Macbooks) are very popular, but the majority of the company’s revenue comes from iPhones. If Apple struggles to keep up with the competition, it could incur significant losses in the stock market.

April 12, 2024