Apple Inc (NASDAQ:AAPL, XETRA:APC) shares were down 4% on Tuesday afternoon after the company’s annual developer conference left some investors questioning the pace of its artificial intelligence rollout, even as analysts broadly viewed the event as a step forward.
At its Worldwide Developers Conference, Apple unveiled Siri AI, a rebuilt voice assistant powered by next-generation Apple Intelligence and Apple Foundation Models developed in collaboration with Google. The revamped Siri can reason across a user’s device, apps and real-world context, and will receive a dedicated app with conversation history synced privately through iCloud.
Despite the reported improvements, analysts flagged meaningful limitations. Siri AI will launch in beta later this year for supported devices set to English and will not be available initially in the European Union on iOS or iPadOS. The feature is also excluded from China due to regulatory hurdles.
That leaves two markets which, together, account for roughly 35% of trailing 12-month iPhone shipments, according to Morgan Stanley.
Hardware constraints also loom large. Morgan Stanley estimates 850 million iPhones cannot run Apple Intelligence at all, while 1.3 billion lack support for the most advanced version of Siri. The bank said those limitations point to hardware upgrade cycles and greater iCloud adoption as near-term monetization levers and raised its price target to $360 from a prior estimate, maintaining an Overweight rating.
Bank of America reiterated its Buy rating with a $380 price target, calling the conference substantive and expressing confidence in Apple’s privacy-first AI architecture. The bank highlighted Apple’s on-device processing and Private Cloud Compute as key differentiators, noting that user data is used only to execute requests and is not stored or made accessible to others, including Apple.
UBS took a more cautious view, leaving its iPhone estimates unchanged and maintaining a $296 price target. The bank said it does not expect the new features to drive meaningful iPhone demand ahead of an anticipated foldable device launch in the fall, and warned that investors may be underwhelmed given how competitive the consumer AI market has become.
All three banks noted an ongoing partnership with Google and Nvidia for third-party compute, as well as a broad set of OS improvements including faster app launches, better search indexing and iOS 27 support back to the iPhone 11.
Apple also announced expanded child safety features, including age-based account safeguards and a redesigned Screen Time experience.
