Today marks Apple's (AAPL, Financial) annual Worldwide Developers Conference (WWDC), starting around 1:00pm ET, with a focus on AI. Last year, shares of AAPL hit record highs ahead of WWDC. Despite a sluggish start today, the stock is just 2% below its all-time highs from mid-December, following a +20% run from April lows. However, a sell-the-news reaction could follow, as seen in the past four years when AAPL shares turned lower either on the day of WWDC or shortly after.
Last year’s reversal came after the unveiling of the Apple Vision Pro, priced at $3499. The anticipated launch pushed AAPL shares higher before WWDC 2023, but the reveal failed to meet expectations. This year, AI is driving AAPL's momentum. Unlike rivals Google (GOOG, Financial) and Samsung (SSNLF, Financial), AAPL has been relatively silent on AI, setting the stage for significant announcements at WWDC.
- AAPL and OpenAI (MSFT, Financial), the company behind ChatGPT, have reportedly been in discussions. Following a Bloomberg article, it was reported that AAPL plans to overhaul Siri with AI, making it more competitive with Google Assistant.
- An enhanced Siri is not the only AI feature expected in AAPL's upcoming iOS 18. Given advancements by Google and Samsung in AI, AAPL is likely to introduce similar features such as photo edits and live transcription.
- While no new Apple Vision Pro devices are rumored ahead of WWDC 2024, AAPL may announce the next iteration of its visionOS, though major changes are unclear.
- Watch for companies AAPL may partner with or mention during WWDC. Last year, Unity Software (U, Financial) surged over +20% on an Apple mention, while Affirm (AFRM, Financial) turned lower after AAPL introduced a buy-now-pay-later option. Suppliers like SWKS, CRUS, AVGO, QRVO, TSM, and QCOM could also be impacted by announcements.
Given AAPL's relatively late entry into AI, investors have high hopes for the WWDC event. However, as seen in past years, high expectations often go unmet, potentially leading to a post-WWDC sell-the-news response.
