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Following Apple's announcement of a series of AI initiatives, on June 11th, U.S. stocks opened with Apple's share price continuing to rise, closing with a gain of over 7%, setting a new high.

Analysts anticipate that the new artificial intelligence features will help drive consumer upgrades to devices, as these tools are only available on newer models.

Faced with fluctuations in consumer spending and the resurgence of tech competitors, Apple views artificial intelligence as a new method to win back fans, create a new following, and reverse the declining trend in iPhone sales.

During the WWDC launch event, Apple introduced a range of new AI features, including comprehensive improvements to its voice assistant Siri, integration with OpenAI's ChatGPT, writing assistance tools, and new customizable emojis. Unlike products from competitors like Microsoft, Apple's AI features are artificial intelligence aimed at the general consumer.

Market analysis suggests that these software features will require at least the iPhone 15 Pro or iPhone 15 Pro Max models to operate, as the AI capabilities rely on the AI chips in Apple's new smartphones.

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Wedbush Securities analyst Dan Ives pointed out in a report that this is a huge opportunity. He predicts that about 270 million iPhones are waiting to be upgraded within four years.

"We estimate that over 15% of Apple's installed base will upgrade to the iPhone 16, as Apple Intelligence is the killer app many have been waiting for," wrote Ives. The iPhone 16 is expected to be released this fall.

Investment banking institutions including Morgan Stanley, Bank of America, and Evercore have all expressed positive views on Apple's latest AI features and have raised their target price for Apple's stock.

Morgan Stanley's analysts stated that Apple's AI features position the company as the "most differentiated consumer digital agent," thereby "accelerating the device replacement cycle" and driving sales of Apple's iPhones.

However, some analysts are skeptical, predicting that consumers will not rush to Apple stores to pay for more AI features. Forrester analyst Dipanjan Chatterjee said, "Perhaps the improved Siri-driven smart devices can prevent some Apple users from defecting, but it is not enough to create a new following."Some analysts believe that AI is only part of the reason why Apple attracts consumers. Su Qian, an analyst at the research firm TechInsights, told Yicai reporters, "We think that in the short term, the impact of Apple's introduction of AI features on mobile phone sales is limited, because for most ordinary users, the functions of artificial intelligence are not essential."

Su Qian stated that the main factors driving consumers to upgrade their phones are the price of the phone and the hardware upgrade situation, and currently, it is still difficult for the iPhone to make significant breakthroughs.

Martin Yang, an analyst at Oppenheimer & Co, said that more consumers may choose Apple because they want a larger iPhone display or a better camera. However, he believes that AI updates will attract early adopters, and the ability of Apple's mobile phones to switch between applications and across applications will give them a competitive edge.

Apple's latest financial report shows that in the fiscal year ending September 2023, iPhone revenue was $200.6 billion, lower than the previous year's $205.5 billion.