Apple (AAPL) stock has been declining since the start of the year ahead of the company's highly anticipated Worldwide Developers Conference (WWDC) in 2024. Constellation Research founder and principal analyst R “Ray” Wang joins his Yahoo Finance Live to discuss what investors can expect to hear from the tech giant at its annual event.
Wang noted that because of Apple's extensive involvement in artificial intelligence, investors want to know how the company plans to incorporate AI into the iPhone, adding: “That wasn't necessarily clear.” said. He said that with upcoming iOS upgrades across Apple's product line, investors will be looking to understand how AI will “bring life to Apple devices.”
Mr. Wang emphasized the importance of collaboration and hinted at the possibility of partnering with Alphabet (GOOG, GOOGL). He believes it's important for Apple to prove that “we're part of that ecosystem.” Wang sees this potential deal as “his step toward more prominent integration” of AI at Apple. But over time, he believes investors will see “more partnerships emerge” as AI integration develops further.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor's note: This article was written by angel smith
video transcript
Akiko Fujita: Apple just announced that its Worldwide Developers Conference will be held on June 10th. Wall Street will be watching closely as the MagSeven technology giant embarks on the latest developments in its devices, and most importantly will be listening for signs of its much-promised AI strategy. . Let's bring in Ray Wang, a friend of the show and an avid Apple stock watcher of his.
Ray, I was just checking here. Apple's stock price has fallen about 11.5% since the beginning of the year, and the year hasn't gotten off to a great start. What do we expect? So what could be the potential catalyst for a rise in stock prices?
R “Ray” One: The big question is, even though Apple has done so much with AI, what is it publicly talking about, selling, and showcasing to help developers understand what they can do with AI inside their devices? I think it's just that. It wasn't always clear. There's always something ambient going on in the background.
And I think people are trying — I mean, everyone watching is trying to figure out what's going to happen with iOS 18, iPad OS 18, tvOS 18, Mac OS 15, watchOS 11. I think. And that's exactly where the magic happens for Apple. It's like your device comes to life.
And I think how devices are enabled by AI is going to be a big area to focus on, not only for many Apple fans, but also for many investors. So he's got 28 million people, 30 million people who actually watched this show remotely last year. And I think about a few thousand people, maybe he's 5,000 or he's 6,000 people will be participating in person.
Josh Lipton: Ray, what did you think about the reports that Apple was considering the Google Gemini for its future iPhone? What did you think about that?
R “Ray” One: Yeah, I think that's really important, right? There are a lot of things you can actually collaborate on. That may be the case with Google.
That may be the case with Microsoft. Maybe other people. And I think it's important for Apple to fully demonstrate that it's part of that ecosystem. And, importantly, I also hope Apple doesn't get distracted by this Justice Department lawsuit.
Akiko Fujita: Ray, don't get distracted by the Justice Department case, it's going to drag on for a while. But on the specific point about Gemini, I mean, how did you read the reports that came out? Does it mean that Apple is, at least internally, a little bit behind what's being said publicly? Or is it? Could this be just one step that Apple was already preparing to finally realize what they're working on internally and integrate it into their products?
R “Ray” One: I think this is a step towards integration into the product. I think these discussions at Google have been going on for quite some time. And I think there's another discussion with other software vendors in terms of actually leveraging that functionality. So I think you'll see some of those partnerships emerge, whether it's collaborations, whether it's videos, whether it's emails, whether it's other arts related to work or corporate environments.
