Apple Inc. (NASDAQ: $AAPL) is a multinational technology company known for its innovative products and services, including the iPhone, iPad, Mac, and Apple Watch.
According to a Bloomberg report, the tech giant is planning an overhaul of its Mac lineup, aiming to revitalize sales and integrate advanced AI capabilities. Apple is preparing to introduce its next-generation M4 processors following the recent release of Macs powered by M3 chips.
Apple’s M4 Chip
Sources familiar with the matter indicate that Apple is nearing the production of the next-generation M4 processor, which will come in at least three variants, and Apple plans to update every Mac model with the M4 series, including new iMacs, a low-end 14-inch MacBook Pro, high-end 14-inch and 16-inch MacBook Pros, and Mac minis.
The move to update the Mac line with the M4 chip comes at a critical time. After peaking in 2022, Mac sales fell 27% in the last fiscal year, and revenue from the computer line was flat during the holiday period. Apple’s M3-focused launch last October aimed to revive the Mac business, but the chips failed to deliver major performance improvements compared to the previous M2.
Revolutionizing Mac Performance
The tech company plans to roll out upgraded computers from late this year through early next year. Their new M4 chip series includes Donan, Brava, and Hidra variants designed for different market segments. Donan chips will power entry-level MacBook Pros and the new MacBook Airs, while Brava chips are tailored for high-end MacBook Pros and premium Mac minis. The flagship Mac Pro will exclusively feature the top-tier Hidra chip.
As part of the upgrades, Apple is considering allowing its highest-end Mac desktops, such as the Mac Pro, to support up to half a terabyte of memory, a significant increase from the current 192 gigabytes. This move aims to address customer complaints about the specifications of Apple’s in-house chips and further enhance its top-tier machines’ performance.
Apple Accelerates AI Integration with M4
Its main focus this year is integrating new AI features into its entire product range using the faster M4 chips to support these advancements. The company will highlight the AI capabilities of these components and their integration with the next macOS version at the June developer conference. Additionally, the company plans to enhance this year’s iPhone processor with AI-centric upgrades.
Apple’s switch to in-house chips has been a strategic move to unify its hardware and software by moving away from processors made by Intel. This transition has helped boost performance and ease device redesign, leveraging the same underlying Arm architecture as the processors in the iPhone and iPad.
Apple Sports: A New Sports App
Apple recently launched Apple Sports, a free iPhone app providing sports fans with real-time scores, stats, and more. Designed for speed and simplicity, it is available for download in the U.S., U.K., and Canadian app Stores. Users can customize their scoreboards, explore detailed information, and seamlessly watch live games through the app. It represents the company’s ongoing efforts to diversify its services portfolio and cater to diverse consumer interests.
Apple Inc. Stock Update
Apple Inc. (AAPL) concluded trading on Thursday at $175.04, a 4.33% increase compared to the previous closing price of $167.78, the largest single-day gain in 11 months.
Before this upswing, AAPL had experienced a decline of 13% since the beginning of the year, up until Wednesday’s market closure. The upward movement carried into Friday, with the stock rising 0.13% to $175.27 as of 01:29 PM EDT.
Over the past year, Apple stock fluctuated between a low of $162.80 and a high of $199.62. In the last ten days, trading volume averaged 52.51 million shares. With 15.44 billion shares outstanding, Apple’s market cap is $2.70 trillion.
Regarding short interest, as of March 28, 2024, 108.78 million shares were held short, a change of -1.88% from the previous period. This short interest represents about 0.71% of the total float.
Analysts Bullish on Apple’s Growth Potential
According to 27 Wall Street analysts, the consensus price target for Apple is $202.76, with estimates ranging from $158 to $250. Of these analysts, 16 recommend buying AAPL stock.
Optimism abounds amid potential partnerships with tech giants like Google to incorporate AI features into iPhones, which is anticipated to prompt a potential stock rerating.
Hedge fund interest is rising, with JPMorgan analyst Samik Chatterjee seeing an appealing valuation opportunity, particularly citing the anticipated growth driven by the AI features of the upcoming iPhone 16. Broader impacts are expected in the iPhone 17 series by 2025.
BofA Securities analyst Wamsi Mohan underscores the market’s underestimation of Apple’s long-term gross margin potential, reinforcing a buy rating and setting a price target of $225.
Should You Invest In AAPL?
Apple is poised to revitalize its Mac lineup with next-generation M4 processors and transition to in-house chips to unify hardware and software for improved performance and user experience. Additionally, the launch of Apple Sports reflects efforts to diversify its services portfolio and cater to diverse consumer interests.
Despite short-term challenges, analysts remain optimistic about Apple’s growth potential, particularly with anticipated partnerships and advancements in upcoming iPhone models, reinforcing a positive outlook for the company’s future.
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