New report looks at how Apple customers see AI

A new report by MoffettNathanson sheds light on how Apple (NASDAQ:AAPL ) customers perceive the company's AI strategy based on findings from a proprietary survey.

Conducted in March, the survey included more than 2,000 Apple users across the U.S. and Europe, gauging their interest in an Apple AI personal assistant and their willingness to upgrade their iPhones to access it.

According to the report, Apple's AI approach focuses on productivity tasks like calendar management, email, and personal contacts, with the bulk of processing happening directly on the device.

This "device-resident" strategy aligns with Apple's emphasis on privacy and trust, which the survey found to be a major strength.

"Apple's customers trust Apple more than any other tech company," the report states, with 64% of respondents rating Apple as the most trustworthy for personal data, far outpacing competitors like Google and Amazon.

Furthermore, the concept of an AI personal assistant from Apple resonated strongly with users, and the survey revealed that many customers are open to upgrading their devices to take advantage of AI features.

This potential upgrade cycle, according to MoffettNathanson, could mirror or even surpass the 5G upgrade cycle of 2021 and 2022.

While MoffettNathanson maintains a Neutral rating for Apple with a $211 price target, they emphasize that Apple's unique position in AI, coupled with its strong user trust, positions the company well to lead the AI race.

However, they note that Apple's current stock price already reflects much of this optimism.

"These findings are broadly confirmatory of a very positive outlook for Apple. A positive outlook that, again, is already priced into Apple's shares," states the firm.

Source: Investing.com