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Apple (AAPL - Free Report) announced its much-awaited generative AI initiative called Apple Intelligence at its WWDC conference in Cupertino, CA, on Monday. Apple Intelligence is positioned as a distinctive offering that understands users and their data.
Updates to its iPhone and Mac operating systems will now allow access to ChatGPT through a partnership with developer OpenAI. ChatGPT can also be used to boost other tools, including text and content generation.
Apple Intelligence will be deeply integrated across the company's hardware and software products. It will be available for the iPhone 15 Pro, iPads, and Macs running Apple's M1 series chips and newer models starting this fall.
Revamping Siri With Generative AI
Siri, Apple's original smartphone voice assistant, is set to receive a significant upgrade with Apple Intelligence. The assistant will feature a new interface, sound more natural, and be more responsive to user commands.
Siri will now respond to follow-up questions, handle interruptions, and accept typed text requests. For instance, Siri can save addresses from Messages or find specific photos in the Photos app based on detailed user requests.
Privacy-Focused Cloud Services
Apple has developed a new cloud service called Private Cloud Compute to ensure user privacy. This service uses Apple Silicon with built-in privacy capabilities, determining if a request can be processed on-device or needs cloud access. Apple assures that no user information will be stored in the cloud.
Comparisons With Competitors
Apple's announcement came as Wall Street eagerly awaited its entry into generative AI, following Microsoft’s (MSFT - Free Report) OpenAI-powered Bing chatbot (Copilot) and Google’s (GOOG - Free Report) , GOOGL) Bard chatbot, now named Gemini. Meta (META - Free Report) has also integrated AI into its platforms through recommendation software and the Meta AI chatbot.
Any Wall of Worry?
First, Apple’s association With ChatGPT has received a mixed response. Ben Wood, chief analyst at CCS Insight, and Tesla chief Elon Musk believe that ChatGPT integration may create deeper problems for the firm, as quoted on BBC.
Moreover, Apple’s competitors have faced several AI hiccups. Google’s Bard provided incorrect answers, and its Gemini image generator displayed historically inaccurate images. Microsoft’s Copilot+PC standard raised security concerns, while Meta faced criticism for not allowing users to disable its AI chatbot.
Historically, Apple has thrived on its reputation for security. Hence, any flaws in its generative AI efforts could harm its brand. In any case, Apple has so far lagged the AI race among the "magnificent seven." However, with the release scheduled for September, Apple has time to refine Apple Intelligence and address potential issues.
How to Play With ETFs?
Since there are still uncertainties related to the success of Apple’s upcoming AI rollout, it is better to track the company with the ETF approach. The basket approach minimizes the company-specific concentration risks. Apple-heavy ETFs include the likes of Technology Select Sector SPDR Fund (XLK - Free Report) , iShares Global Tech ETF (IXN - Free Report) and iShares U.S. Technology ETF (IYW - Free Report) .
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Bet on "Apple Intelligence" With These ETFs
Apple (AAPL - Free Report) announced its much-awaited generative AI initiative called Apple Intelligence at its WWDC conference in Cupertino, CA, on Monday. Apple Intelligence is positioned as a distinctive offering that understands users and their data.
Updates to its iPhone and Mac operating systems will now allow access to ChatGPT through a partnership with developer OpenAI. ChatGPT can also be used to boost other tools, including text and content generation.
Apple Intelligence will be deeply integrated across the company's hardware and software products. It will be available for the iPhone 15 Pro, iPads, and Macs running Apple's M1 series chips and newer models starting this fall.
Revamping Siri With Generative AI
Siri, Apple's original smartphone voice assistant, is set to receive a significant upgrade with Apple Intelligence. The assistant will feature a new interface, sound more natural, and be more responsive to user commands.
Siri will now respond to follow-up questions, handle interruptions, and accept typed text requests. For instance, Siri can save addresses from Messages or find specific photos in the Photos app based on detailed user requests.
Privacy-Focused Cloud Services
Apple has developed a new cloud service called Private Cloud Compute to ensure user privacy. This service uses Apple Silicon with built-in privacy capabilities, determining if a request can be processed on-device or needs cloud access. Apple assures that no user information will be stored in the cloud.
Comparisons With Competitors
Apple's announcement came as Wall Street eagerly awaited its entry into generative AI, following Microsoft’s (MSFT - Free Report) OpenAI-powered Bing chatbot (Copilot) and Google’s (GOOG - Free Report) , GOOGL) Bard chatbot, now named Gemini. Meta (META - Free Report) has also integrated AI into its platforms through recommendation software and the Meta AI chatbot.
Any Wall of Worry?
First, Apple’s association With ChatGPT has received a mixed response. Ben Wood, chief analyst at CCS Insight, and Tesla chief Elon Musk believe that ChatGPT integration may create deeper problems for the firm, as quoted on BBC.
Moreover, Apple’s competitors have faced several AI hiccups. Google’s Bard provided incorrect answers, and its Gemini image generator displayed historically inaccurate images. Microsoft’s Copilot+PC standard raised security concerns, while Meta faced criticism for not allowing users to disable its AI chatbot.
Historically, Apple has thrived on its reputation for security. Hence, any flaws in its generative AI efforts could harm its brand. In any case, Apple has so far lagged the AI race among the "magnificent seven." However, with the release scheduled for September, Apple has time to refine Apple Intelligence and address potential issues.
How to Play With ETFs?
Since there are still uncertainties related to the success of Apple’s upcoming AI rollout, it is better to track the company with the ETF approach. The basket approach minimizes the company-specific concentration risks. Apple-heavy ETFs include the likes of Technology Select Sector SPDR Fund (XLK - Free Report) , iShares Global Tech ETF (IXN - Free Report) and iShares U.S. Technology ETF (IYW - Free Report) .