CUPERTINO - Apple Inc (NASDAQ:AAPL). announced today the launch of Private Cloud Compute, an update to its platforms designed to bolster user privacy in cloud-based artificial intelligence (AI). This new feature extends the security measures of the iPhone to the cloud, allowing users to benefit from AI without compromising on privacy.
Private Cloud Compute enables Apple's AI to process complex user requests by using server-based models for tasks that require greater computational power, while ensuring that personal data is not stored or accessible to Apple. Craig Federighi, Apple’s senior vice president of Software Engineering, emphasized the system's advanced security architecture and the ability for independent experts to verify these protections.
The update also introduces additional privacy features, including the ability to lock and hide apps on a user's device. These capabilities are part of Apple's ongoing efforts to empower users to control their data and privacy. Erik Neuenschwander, Apple’s director of User Privacy, highlighted the company's commitment to providing innovative privacy protections.
Other privacy-focused updates include improvements to Contacts permissions, allowing users to select which contacts to share with an app, and the Accessory Setup Kit, which simplifies pairing of accessories without exposing other devices on a network.
The new Passwords app, building on Apple's Keychain technology, offers a secure way for users to manage their account passwords, Wi-Fi passwords, and two-factor authentication codes. Additionally, the updated Privacy & Security section in Settings provides users with an overview of app access levels.
iOS 18 will feature on-device categorization in Mail, satellite messaging in Messages, and presenter preview in macOS Sequoia to prevent oversharing during video conferences.
The developer betas of iOS 18, iPadOS 18, and macOS Sequoia are currently available to Apple Developer Program members, with public betas to follow next month. The full software updates, including Apple Intelligence, are set to release this fall for the iPhone 15 Pro, iPhone 15 Pro Max, and iPad and Mac models with M1 chips or later. These updates will support U.S. English on Siri and device language settings.
This information is based on a press release statement from Apple Inc.
In other recent news, Apple Inc. is making significant strides in its product offerings and capabilities. The tech giant has unveiled iOS 18 and iPadOS 18, introducing enhanced customization options and the debut of Apple Intelligence, a personal intelligence system. The updates are set to roll out in the fall and will be compatible with iPad models equipped with an M-series chip and select iPhone models.
Apple also announced a strategic shift to use its own server chips for artificial intelligence (AI) processing, which is expected to enhance AI experiences across its devices. The company has also revealed new features for its upcoming tvOS 18 aimed at enhancing the home entertainment experience. In a surprising development, Tesla (NASDAQ:TSLA)'s CEO, Elon Musk, threatened to ban the use of Apple devices at his companies should Apple proceed with the integration of OpenAI into its operating system.
Analysts' feedback on these developments has been mixed. UBS maintained a neutral rating on Apple's stock, while DA Davidson and Citi maintained neutral and buy ratings respectively. These recent developments underscore Apple's commitment to innovation and user experience.
InvestingPro Insights
In light of Apple Inc.'s announcement regarding the launch of Private Cloud Compute, investors may consider the latest financial metrics and analyst insights from InvestingPro. As of the last twelve months leading into Q2 2024, Apple boasts a market capitalization of $2.95 trillion USD, reflecting its substantial presence in the market. The company's P/E ratio stands at 30.08, suggesting a premium valuation that investors are willing to pay for Apple's earnings.
An InvestingPro Tip notes that Apple has raised its dividend for 13 consecutive years, indicating a strong commitment to returning value to shareholders. This is particularly relevant for investors looking for stable income streams in addition to growth potential. The company's dividend yield as of mid-2024 is 0.51%, with a dividend growth of 8.7% in the last twelve months, underscoring Apple's financial health and its ability to increase shareholder payouts.
Still, it is worth noting that 12 analysts have revised their earnings downwards for the upcoming period, which could signal caution for those banking on continued robust financial performance. Moreover, the company's stock is suggested to be in overbought territory based on the Relative Strength Index (RSI), which may indicate a potential pullback or consolidation in the near term.
For investors seeking more detailed analysis and additional InvestingPro Tips, they can explore further insights by visiting: https://www.investing.com/pro/AAPL. There are 18 additional InvestingPro Tips available, offering a comprehensive view of Apple's financial and market position. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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