Investors shouldn’t expect an artificial intelligence upgrade to Apple (AAPL) devices this year, says Swiss bank UBS Group (UBS).
AI features and enhancements are expected to lead to a booming refresh cycle for Apple devices such as the iPhone and iPad. But UBS says investors shouldn’t hold their breath waiting for the promised AI products to materialize, which the tech giant has labeled “Apple Intelligence.”
Apple has delayed promised AI updates to Siri, its digital assistant, and UBS says hopes are dimming for the consumer electronics giant to rollout a killer AI app or feature for the iPhone this year. Without the expected AI boost, sales of the iPhone are likely to remain sluggish, with UBS saying that iPhone customers remain loyal but aren’t motivated to buy new models of the smartphone.
Pessimistic View
David Vogt, a top four-star rated analyst, wrote in a note to clients that, “We do not expect a material change in the [handset shape] or a significant improvement to Apple Intelligence over the next 12 months even with the upcoming [iPhone] 17 series in the fall of 2025, dampening demand.”
Apple said earlier in March that it expects to rollout AI improvements to Siri “in the coming year.” The company had been expected to launch the new and improved voice assistant in April or May of 2025 along with the release of its iOS 18.4 software update.
UBS calculates that the average age of a consumer’s iPhone, excluding China, is now around 37 months, up from 34 months a year ago. Vogt maintains a Hold-equivalent neutral rating on AAPL stock along with a $236 price target.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 32 Wall Street analysts. That rating is based on 17 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $249.88 implies 11.67% upside from current levels.
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