CIOInsider India Magazine
How Apple Won Back its Spot as the World's Most Valuable Company
Apple yet again bounced back as the world’s most valuable company, with a market capitalization of $3.25 trillion surpassing Microsoft. Experts say that its success is due to Apple Intelligence, including its focus on incorporating many artificial intelligence features, which the company announced at its latest Worldwide Developers Conference. This was particularly reflected in its stock price when it hit an all-time high of $215 per share. Investors also expressed optimism upon observing the tech giant’s approach to AI.
When we look at today’s day-to-day consumption of digital tools or features, one can notice that Apple products are used somehow or another almost everyday. Be it music, app store or growth, the company’s identity is almost synonymous everywhere. Now, Apple’s stock has risen by 10 percent, Microsoft's by 16 percent and Alphabet's by almost 28 percent.
Buyback Plan that Cleared the Impression of its Subsiding Share Performance
Apple broke the record when it announced a $110 billion buyback plan in May. This exceeded its quarterly results and projection on market expectations, and blew off some of the concerns around its poor share performance.
More Hope Was Restored Thanks to the WWDC’s Announcements
Apple proved that it stood apart from its competitors at the WWDC debut event. CEO Tim Cook and other executives highlighted Siri's ability to work with third-party apps, emails, calendars, and messages during the annual developer conference.
Approach to AI is Different
Compared to other companies developing AI for a wide range of products, Apple is solely concerned with the devices it sells and the personal data that AI may be able to utilize.
Starting with the strategy, the tech giant is placing priorities on quick fixes without draining batteries for the long-term, and promised that it is looking way ahead into the future of its tech capabilities.
Apple AI could alter the path of products that employ the technology and affect the AI infrastructure annually if its AI features outperform those of cloud-based competitors like Microsoft and Google.
Apple is also putting in a lot of effort to build or obtain powerful supercomputers fitted with Nvidia chips as far as its AI work is concerned. It has attracted a lot of technological and investment attention to create even more powerful AI products and features.
The comeback makes for a great deal for the tech giant as it was long held back in a series of misfortunes for almost five months lagging behind Microsoft, even Nvidia.
The vision for its plans on AI is observed to be not around a single large model, but rather a multitude of smaller models. Ones that operate on Apple chips and devices, it does not require much memory or processing power. The company’s executives denoted that the company or an app utilizing Apple's technologies uses more of the cloud for a better AI model if the phone's AI is unable to perform the task, for instance. That is why Apple executives described their approach as ‘Apple Intelligence.’
Partnership With OpenAI to Bring ChatGPT to Users
To provide users with access to ChatGPT if Siri is unable to answer their questions, Apple approached OpenAI for the matter. Besides, these functions are only activated when users grant permission.
More Advantageous on the Cloud
Apple's method has proven beneficial over cloud-based alternatives in case of speed and privacy. Apple said that its AI might be able to access personal information about a user's schedule, whereabouts, and activities through the user's iPhone. Moreover, it claimed that instead of providing customers with an unrestricted chatbot interface, its smaller models are only being used for jobs in which they are proficient.
Rise After Five Months of Constant Peril
The comeback makes for a great deal for the tech giant as it was long held back in a series of misfortunes for almost five months lagging behind Microsoft, even Nvidia. Its stock underperformed this year compared to peers in the happening sector of AI.
Apple dropped its long endeavor to create an electric vehicle, got removed from a Goldman Sachs list of leading stocks, reversed course on the issue of web apps for its iPhones and Europe, and this week began with a $2 billion fine in Europe for abusing its power against Spotify and other music streaming services.
Removed from Goldman Sachs' List of Top Stocks
Following a tumultuous week, Apple was taken from Goldman Sachs' list of top stocks. The equities on Goldman's ‘Conviction List’ are those that analysts foresaw a yield of significant returns. Goldman replaced Apple and the pharmaceutical manufacturers Merck and Vertex with the biotech behemoth Amgen, the crushed stone manufacturer Vulcan Materials, and the software startup Monday.com.
Cancelled Electric Vehicle Creation Plan
About 10 long years of struggle Apple had to let go of its ambitions on Project Titan to make its very own electric car. Several of the members of the team, called the Special Projects Group, are expected to be transferred to Apple's AI division instead.
Backtracked on Removing iPhone Webapps After European Union’s Probe
Apple stated that it intends to continue supporting its web apps in the European Union region. The change came after European Union officials announced that they had begun looking into the reasons behind Apple's potential decision to stop supporting web apps in the EU.
Backlash for Abusing Power Over Spotify and Other Music Streaming Apps
Regulators in the European Union have fined Apple 1.8 billion euros ($1.95 billion) for allegedly abusing its dominating position in the market for the distribution of music streaming apps, including Spotify and Apple Music.
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