Apple Likely To Open LLMs, Integrate Gemini On iPhone At WWDC: Analyst

Goldman Sachs analyst Michael Ng maintained a Buy rating on Apple Inc AAPL with a price forecast of $253 on Wednesday, ahead of Apple’s WWDC 2025 Keynote scheduled for June 9.

Ng expects Apple to demonstrate continued progress toward incorporating AI into its operating systems through developer access to its AI models for app development, as well as the potential announcement of Gemini AI integration on iPhones given Alphabet Inc GOOG GOOGL CEO Sundar Pichai‘s recent comments regarding hopes to finalize a partnership with Apple by mid-2025.

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The analyst notes that Apple will need to demonstrate further success with Apple Intelligence before investors are willing to underwrite it as a demand driver.

Ng expects WWDC iOS updates to primarily feature design updates to standardize operating interface visuals across devices and convenience-oriented feature introductions, like public WiFi access syncing, AI-driven battery optimization, and Gemini integration. Some reported design updates include rounded app icons, a floating tab bar, and more translucent app displays.

Ng believes Apple’s incremental improvements to the user experience through iOS 19, expectations for AI-enhanced Siri to launch later in 2025/26, and the potential opening of Apple’s Large Language Models (LLMs) for app developers should help it maintain installed base stickiness and increase competitiveness.

Ng projected fiscal 2025 revenue of $408.99 billion and EPS of $7.16. The analyst believes Apple’s valuation is appealing, asserting it is attractive compared to its historical multiples, both on an absolute and relative basis and when set against its key technology counterparts.

Most of Apple’s gross profit growth over the next five years is projected to come from its Services segment. This anticipated surge in Services revenue is expected to signify an inflection point in the segment’s investment narrative, thereby bolstering AAPL’s premium valuation, notes Ng.

He also highlights the durability of Apple’s installed base of devices as a critical factor. Apple’s robust user base provides significant visibility into future revenue growth, driven by the increasing attachment of more Services and Products. This phenomenon is understood to underpin the concept of recurring revenue, or what Ng refers to as the “Apple-as-a-Service” opportunity.

Price Action: AAPL stock is trading lower by 0.48% to $201.15 at last check Thursday.

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