Wedbush: Apple's AI strategy requires a "three-pronged approach": acquiring Perplexity, attracting talent, and partnering with Gemini

According to Zhitong Finance APP, Wedbush Securities emphasizes that Apple (AAPL.US) needs to take three actions to avoid experiencing a "BlackBerry moment" (referring to a crisis of decline due to lagging technological iteration) in the field of artificial intelligence. The firm maintains an "outperform" rating on Apple, with a target price of $270.

Led by analyst Daniel Ives, the team stated, "We have outlined three things that Cook and Apple need to accomplish in the coming months to prove to developers and investors that Apple's AI strategy will not become a 'slowly melting ice cube,' nor will Cupertino (the location of Apple's headquarters) be left watching the AI feast from a distance."

First, analysts suggest that Apple should acquire Perplexity as soon as possible to avoid missing the opportunity. They believe that Perplexity, as an AI search engine, has technology that could redefine Apple's AI strategy and perfectly integrate with Siri.

Analysts added that Perplexity's AI algorithms and technology are among the best in the tech industry. Even if Apple has to pay over $30 billion for it, this investment is just a drop in the bucket compared to the potential monetization opportunities in the AI field.

Second, Apple needs to bring in external talent for its management team. Ives and his team stated, "The innovation performance at Apple Park is quite disappointing, and it is time to inject external AI talent into it."

Analysts pointed out that transformation is imperative. Although Apple may need to offer high salaries to attract tech executives from outside, this will change the company's AI innovation culture. "We believe Cook will serve as Apple's CEO at least until 2030, but significant adjustments must be made internally."

Finally, analysts suggest that Apple should reach a Gemini partnership agreement with Google (GOOGL.US). They mentioned that although the current regulatory environment, including lawsuits from the justice department, adds complexity, Apple still needs to fully integrate Google's Gemini AI into the iPhone ecosystem.

Ives' team stated that for various reasons, OpenAI will not become Apple's future partner, and Apple must fully bet on Gemini, which will bring a qualitative change in AI model capabilities for Apple users.

Analysts said, "Time is not on Apple's side; they must take significant action now, and deepening cooperation with Google is the right move. Despite facing regulatory scrutiny, in our view, Gemini is clearly the answer."