Apple, known for revolutionizing smartphones, is now gearing up to lead the next wave of telecommunications with AI-powered devices, according to senior analyst Wamsi Mohan from Bank of America.
While Apple has kept its AI plans under wraps, analysts anticipate that the company will unveil AI tools in its upcoming iOS 18 update at the Worldwide Developers Conference in mid-June. Mohan envisions a future dominated by “IntelliPhones,” devices designed to integrate virtual and augmented reality experiences alongside AI-driven personal assistants.
“While not all features may debut at WWDC, we anticipate a roadmap for IntelliPhones becoming mainstream, especially as conversational AI becomes more integrated into daily life and AI agents improve in sophistication,” Mohan stated.
The evolution of AI technology is expected to widen the gap between IntelliPhones and traditional smartphones, offering more advanced and personalized functions that will drive consumer desire to upgrade, Mohan suggested.
Mohan also predicted that AI smartphones will spearhead the AI revolution ahead of AI-powered PCs. This outlook could prove beneficial for Apple as it aims to catch up with its Big Tech competitors. For instance, while Microsoft has seen a 30% increase in its stock value over the past year with the introduction of an AI laptop sub-brand, Apple’s stock has only risen by 9%. However, the development of AI iPhone software might bolster Apple’s stock performance, according to Mohan.
Maintaining his $230 price target for Apple, Mohan concluded his analysis, noting that Apple’s current stock price stands at $191 per share.