With its push into AI, Apple Inc. might be using a strategy that has been used before.
The slogan for Apple Intelligence is “AI for the rest of us.” This reminds Oppenheimer analyst Martin Yang of when Apple AAPL, -1.63% advertised the Macintosh as a “computer for the rest of us” almost forty years ago.
“Apple Intelligence is a lot like an Apple product from 40 years ago,” Yang told clients in a note. “Apple is setting a new standard for the hardware and software experience in a way that can be hard for the average consumer to understand, fear, and adjust to.”
Yang says that things are better for Apple now than they were in the 1980s. “In the early days of personal computers, Macintosh set a new standard for ease of use with its graphical interface and mouse,” he wrote. “This time is different because Apple has made its own products much safer.”
Yang is becoming more optimistic about Apple’s stock as the company gets ready to release its new AI software. In a report released Friday, he raised his price target from $200 to $250. The new goal is 17% higher than what it is now.
He said that Apple might be able to grow its revenue and earnings faster than Wall Street thinks possible thanks to its plan for consumer AI that works with its ecosystem. Yang thinks that Apple’s ecosystem is a big plus because of things like the close ties between the company’s hardware and software that can make them more power efficient.
AI is a software feature, but it’s only available on newer models. This could be good for the company’s hardware line. Yang wrote, “We think the excitement over Apple Intelligence could speed up hardware replacement and help the iPhone, iPad, and Mac gain market share.”
Apple stock went down 1.6% on Friday, but it ended the first half of the year up 9.4%. The S&P 500 SPX, on the other hand, went up 14.5% in the first half.
