If you think about Apple, one thing that will you may think about is people love their apple products. If people love the products, they are very likely to be loyal to the products if and when they upgrade. For Apple that reputational advantage is almost something you can take to the bank. In recent months, the news broadcasts and print stories have been highlighting AI, but you did not often hear Apple’s name. Apple traditionally is not have the first product on the market, but in their users mind, they often have the best products.

In an article by Aditya Soni and Stephen Nellis of Reuters, Apple unveiled its new Apple Intelligence technology across its suite of apps including Siri and partnering with OpenAI to bring ChatGPT to its devices.

The AI features were announced at its Worldwide Developers Conference. This conference is an annual event and Apple showcases its own apps and operating systems as well as to show developers new tools they will be able to use in their apps. The developers of the apps are encouraged to use AI in their apps.

Apple has sold over 1 billion iPhones and the newest phone to come in the fall will have AI features. The potential for Apple is those billion users of iPhones will upgrade to new iPhones powering the iPhone revenue stream as well as the services that are offered on iPhone.

Linking to dividend paying stocks, these companies typically make profits every year and there are very practical reasons. Yes they are good companies, but if customers are loyal, then they continually buy the products and services. In a company similar to Apple, it has the potential that half the users will upgrade and if they upgrade the recurring revenues for Apple will allow them to make profits and some may see the company as a growth stock which pushes up the price.

There are more questions than answers, till the next time – to raising questions.