MoffettNathanson Report on Apple’s AI Strategy

A new report by MoffettNathanson addresses customer perceptions regarding Apple’s (NASDAQ:AAPL) AI strategy, based on a proprietary survey conducted in March with over 2,000 Apple users from the U.S. and Europe.

Key Findings

The survey focused on:
– Interest in an Apple AI personal assistant
– Willingness to upgrade iPhones for AI access

Device-Resident Strategy

Apple’s AI approach emphasizes productivity tasks such as calendar management, email handling, and personal contacts. Notably, most processing occurs directly on user devices, aligning with Apple’s commitment to privacy and trust.

Trust in Apple

The report highlights that 64% of respondents see Apple as the most trustworthy tech company for personal data, surpassing competitors like Google and Amazon.

User Interest in AI

The concept of an AI personal assistant resonated well with users, revealing a strong inclination towards upgrading devices for AI capabilities. MoffettNathanson suggests that this upgrade cycle might parallel or even exceed the significant 5G upgrade seen in 2021 and 2022.

Market Outlook

Despite maintaining a Neutral rating with a $211 price target, MoffettNathanson believes Apple’s strong user trust and unique AI positioning position it well in the AI landscape. However, they caution that the stock price already reflects much of this optimism.

“These findings are broadly confirmatory of a very positive outlook for Apple. A positive outlook that, again, is already priced into Apple’s shares,” the firm stated.