Apple stocks are down by nearly three per cent in the early morning trade on Tuesday. AAPL shares fell 2.97 per cent at Nasdaq, a day after Apple's annual Worldwide Developers Conference on Monday. Morgan Stanley in a research note on Tuesday stated that Apple's newly introduced AI Siri will have limited use across much of the company's install base because older iPhones lack the capabilities to run advanced AI features.
Why are Apple Stocks Down?
But an AI update to Apple's Siri voice assistant unveiled on Monday garnered lacklustre reviews, spurring caution among investors who have seen tech valuations push equity markets into record territory, AFP reported.
More than 850 million iPhones are incapable of running basic Apple Intelligence queries, and more than 1.3 billion iPhones cannot use advanced Siri features, the brokerage said.
The long-delayed Siri overhaul was the centrepiece of Apple's annual Worldwide Developers Conference on Monday, with the world's most valuable smartphone maker betting on the feature to keep pace with rivals including OpenAI's ChatGPT, Google's Gemini and Anthropic's Claude.
Selling hardware on the strength of software is challenging, Morgan Stanley cautioned, even as AI accessibility ranks among the leading drivers of smartphone upgrades.
Siri AI is available on iPhone 15 Pro, iPhone 15 Pro Max and iPhone 16 models or later, according to Apple's website.
The bottleneck for the upgraded Siri and AI tools comes down to chip architecture and memory. Users need 12 GB of unified memory to run the most advanced Siri features, owing to the volume of on-device processing that Apple Intelligence requires, the brokerage said.
