On June 10, Apple CEO Tim Cook announced new products at the company’s campus in Cupertino, California. The announcement came as Apple’s market cap closed at roughly $3.29 trillion on Thursday, making it the most valuable public company in the United States, surpassing Microsoft with a market cap of $3.28 trillion. The stock climbed after announcements at its annual Worldwide Developers Conference, including generative AI features for iPhones.
Apple shares rose 0.6% on Thursday and have increased by 8.8% so far this week, while Microsoft shares rose 0.1% on Thursday. However, just a week earlier Nvidia had surpassed Apple to become the second-largest public US company, with Nvidia now ranking third behind Microsoft. Despite potential challenges, a focus on AI could drive growth for iPhone sales and services over the long term as users are waiting longer to upgrade devices and economic uncertainties impact consumers, especially in China.
In addition to regulatory scrutiny in Washington, Apple also faces criticism for its partnership with OpenAI, the creator of ChatGPT, which may give it a boost but has raised concerns about user privacy due to OpenAI’s use of user inputs in ChatGPT’s data set. While the partnership may drive innovation and revenue for Apple in the future, it is important for the company to address these concerns and prioritize user safety and anonymity to maintain its reputation as a trusted brand among consumers.
