Apple Shares Fall 3% After Announcing Apple Intelligence AI Platform and Upgraded Siri

Apple shares fell 3% on Tuesday, a day after the company revealed new artificial intelligence software at its annual Worldwide Developers Conference. The decline leaves the stock on track for its worst day since February. Apple announced new frameworks called Apple Intelligence that will allow app developers to tap into the company's AI on iPhones and Macs.

It also introduced a new version of Siri called Siri AI based on large language models and disclosed that it is using a cloud model comparable to frontier models with help from Google and Nvidia. Analysts reacted positively to the announcements and praised the Siri improvements.

Several noted, however, that the company did not commit to a release date for Siri AI, although developers can already test it in beta software.

"While the company laid out a decent vision and some early personalized/contextual AI use cases, it plans on releasing Siri AI beta later this year, with no concrete timing of a full release," wrote Baird analyst William Power. " Goldman Sachs analysts said Apple's integration of AI into its hardware could drive a strong product refresh cycle.

They also noted that the company has an opportunity to monetize AI through rate limits and subscriptions.

"Some features, including image generation, have daily usage limits because they rely on powerful server models," wrote Goldman analyst Michael Ng. " JP Morgan analyst Samik Chatterjee noted that Apple said its AI features would be delayed in China and Europe due to regulatory issues and that the tools are only being launched in English to start.

"While the fall launch of Siri AI in the US will be a significant positive for the holiday sales season, the future roll-out to other geographies as well as other languages will be a critical watchpoint for investors going forward," Chatterjee wrote.

UBS analyst David Vogt wrote that Apple Intelligence may underwhelm consumers who have a lot of choices and that he does not expect the new features to be a demand game changer for Apple hardware. "Despite various interesting AI-related announcements, we leave our iPhone estimates unchanged as we do not believe that the new offerings will drive iPhone demand," Vogt wrote.