Apple’s artificial intelligence features have garnered backing from an investment firm, which says the iPhone maker’s privacy-focused Apple Intelligence platform could gain market share.
New York-based investment bank Rosenblatt Securities made the announcement after releasing a survey revealing that privacy is one of the most sensitive features U. S. consumers need when it comes to AI, the investment-focused Investing. com reported.
Of the other 500 people surveyed, 17. 8% said privacy was the most desired feature, choosing from a list of 15 smartphone features. That’s 5. 6% more than the next feature, Insight.
“Given that Apple has uniquely known Private Cloud Computing as the center of its approach, building on a recent history of tighter ad privacy protections in its app store and in contrast to its competitors’ AI privacy incidents, Apple appears to be well-positioned to gain interest in the logo and gain share in the AI market. From the beginning, the emphasis was on confidentiality,” Rosenblatt analysts said.
With this in mind, Rosenblatt has hiked the iPhone maker’s stock to “buy” it, giving Apple Intelligence its stamp of approval. Other analyst studies agree: Bank of America reaffirmed its buy score and issued a price target of $230. 00 for Apple shares in June. Score from 12 studies, according to Marketbeat.
Tigress Financial raised its price target on Apple from $240. 00 to $245. 00 and gave the company a strong buy score in a May 30 report. DA Davidson upgraded Apple from a neutral score to a buy score and raised its price target for the company from $200. 00 to $245. 00. $230. 00 in a June 11 study report.
Interestingly, some of the elements that help make Apple’s AI more personal and secure, such as specialized grand language (LLM) models and Apple’s silicon, may help the iPhone maker overcome the charging pressures plaguing its competitors, Rosenblatt analysts said.
They noted that Apple’s spending was not expanding at the level of its competitors such as Google, Amazon, Meta, and Microsoft. “In order for Apple to be able to keep its pie (healthy margins) and eat it as well, integration through Private Cloud Compute with third parties to deliver the benefits of those companies’ large investments,” the analysts said.
This new news will be a boon to the iPhone maker, which has long been differentiated by its emphasis on privacy.
Apple has been noted to be lagging behind its tech giant rivals when it comes to artificial intelligence, however, the company’s focus on privacy has inspired experts. This is despite Apple and OpenAI agreeing to include ChatGPT on iPhones in iOS 18, which some commentators say may simply raise privacy concerns.
Apple Intelligence and its Private Cloud Compute appear to be very different from the AI privacy features introduced by its competitors, as the iPhone maker allows users to have as much privacy as imaginable when employing the technology. Even when AI features require more resources, Apple says its PCC provides the ability to process data in a unique, secure, and personalized way, in a private cloud environment.
“When designing AI algorithms, it’s incredibly vital that privacy is taken into account,” says Jake Moore, Global Cybersecurity Advisor at ESET. However, the amount of knowledge collected and analyzed to produce a smart quality point is “exorbitant” and “can reveal non-public knowledge,” he adds.
Apple’s continued powerful privacy is “clearly ahead of its competitors,” and few offer the same point of protection, Moore says. He believes that the iPhone maker’s AI strategy “may eventually lead to some much-needed buildup. “in market share, which in turn may compel others to follow suit. “
Concerns about AI privacy persist as the generation rolls out across the tech giants. But with early research confirming that privacy is vital for consumers employing this generation, Apple may have hit the nail on the head with its AI strategy.
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