Your browser does not support JavaScript!

The Evolution of Apple's Operating Systems and AI Integration

GOOVER DAILY REPORT July 7, 2024
goover

TABLE OF CONTENTS

  1. Summary
  2. Introduction of Apple Intelligence in iOS 18
  3. New Features in macOS 15 Sequoia
  4. AI Competition Between Apple and Samsung
  5. Apple's Market Dynamics and Stock Performance
  6. Public Previews of Apple’s New OS Features
  7. Conclusion

1. Summary

  • This report provides an in-depth examination of the latest advancements and features introduced in Apple's operating systems iOS 18 and macOS 15 Sequoia, with a particular focus on the integration of AI technology, Apple Intelligence. The report details significant improvements across various applications and devices, emphasizing the personalized user experience, enhanced security measures, and advanced AI capabilities. It also highlights the competitive dynamics between Apple and Samsung's AI technologies, Galaxy AI, and analyzes market implications based on public previews, tech reviews, and stock market responses. Additionally, the report discusses the implications for consumer upgrades and the strategic importance of AI in maintaining market leadership.

2. Introduction of Apple Intelligence in iOS 18

  • 2-1. Personalized user experience

  • iOS 18 presents a highly personalized user experience through Apple Intelligence, leveraging personal context to offer intelligent and relevant assistance tailored to individual users. By understanding user habits and preferences, the system aims to enhance efficiency and streamline day-to-day interactions.

  • 2-2. Home Screen customization

  • Users can personalize the Home Screen layout by arranging apps and widgets for quick access or to frame a favorite wallpaper. Each Home Screen page can have a unique layout, enabling a finely attuned user experience.

  • 2-3. Locked and hidden apps

  • iOS 18 introduces the ability to lock apps with Face ID, Touch ID, or a passcode to secure sensitive data. Additionally, users can hide apps within a locked folder, preventing inadvertent exposure of sensitive information.

  • 2-4. Enhanced Messages and Mail apps

  • The Messages app in iOS 18 offers text effects and new ways to animate texts with emoji and stickers. The Mail app introduces on-device categorization, organizing messages into categories such as Primary, Transactions, Promotions, and Updates for better inbox management.

  • 2-5. Security updates in the Passwords app

  • The Passwords app now securely stores and syncs credentials across iPhone, iPad, Mac, and Windows. It supports sorting accounts by creation date, type, and shared status, enhancing security and accessibility.

  • 2-6. Gaming improvements and new Game Mode

  • Game Mode doubles the Bluetooth polling rate for wireless controllers and reduces audio latency with AirPods, providing more responsive gameplay. Personalized Spatial Audio creates an immersive sound experience, especially notable in games such as 'Need for Speed: Mobile'.

  • 2-7. Advanced Siri capabilities

  • Siri's capabilities are significantly enhanced with advanced AI features. Siri now better understands context, improves conversational abilities, provides real-time smart responses, and enables hands-free interactions through head gestures.

  • 2-8. Accessibility features and enhancements

  • iOS 18 includes accessibility advancements like Eye Tracking for controlling iPhone with eye movements, Music Haptics syncing vibrations with music rhythms, and Vocal Shortcuts for action-triggering sounds. These features aim to make technology more accessible to users with disabilities.

3. New Features in macOS 15 Sequoia

  • 3-1. Apple Intelligence Integration

  • Apple Intelligence is a significant feature in macOS Sequoia, integrated deeply within the OS to enhance various apps and features. Key functionalities include Writing Tools, Genmoji for custom emojis, Image Playground App for image generation, and a smarter Siri with improved responses and the ability to perform actions across apps.

  • 3-2. iPhone Mirroring

  • The new Continuity feature, iPhone Mirroring, allows users to control their iPhones using their Mac's mouse, keyboard, and trackpad. Notifications from the iPhone now appear on the Mac. This feature is not available in the EU due to DMA-related issues but can be used on Macs with Apple silicon or a T2 security chip.

  • 3-3. System Settings Revamp

  • System Settings in macOS Sequoia have been revamped to offer a more streamlined interface similar to iOS 18 and iPadOS 18. iCloud settings now have their own tab in the sidebar for easier access.

  • 3-4. Notes App Enhancements

  • The Notes app now allows users to record audio directly within notes and includes calculation capabilities for performing equations. Other new features include the ability to collapse headings, new text highlight options, and math notes for complex calculations.

  • 3-5. Safari Browser Highlights

  • Safari introduces a feature called Highlights, which uses machine learning to detect and highlight relevant information on a page. The Reader mode has been redesigned to include a summary and table of contents, and Video Viewer centers videos for easier viewing.

  • 3-6. Productivity Tools and Calendar Integration

  • macOS Sequoia includes new productivity tools such as Windows Tiling for better window management and integration between the Calendar and Reminders apps to view, edit, and complete reminders directly within Calendar.

  • 3-7. AirPods and Bluetooth Updates

  • For AirPods Pro 2 users, macOS Sequoia supports head gestures for accepting or declining calls and activating Siri. The Voice Isolation feature and Headphone Accommodations are now supported, improving audio customization and accessibility.

  • 3-8. Welcome Screen and Setup Improvements

  • After completing the setup, a 'Welcome to Mac' screen appears, similar to the initial setup experience on iPhones and iPads. The double-click behavior on the title bar can now be set to 'Fill,' adding another customization option for users.

4. AI Competition Between Apple and Samsung

  • 4-1. Introduction of Apple Intelligence vs. Galaxy AI

  • Apple is preparing to enhance the iPhone with a new feature called Apple Intelligence, while Samsung is gearing up to respond with Galaxy AI. Apple's vision of generative AI includes a revamped Siri, tools for boosting emails and messaging, image creation support, and integration with OpenAI’s ChatGPT. These features aim to inspire consumers to upgrade to newer models like the iPhone 15 Pro and the upcoming iPhone 16 to gain access. Conversely, Samsung introduced Galaxy AI with the Galaxy S24, featuring options like 'circle to search' from Google, live translator tools for calls, and enhanced photo editing capabilities, making these features available even on older models like the S23 and Z Fold5.

  • 4-2. Market Share and Sales Competition

  • By the end of 2023, Apple overtook Samsung for the first time in 12 years, securing a 20.1% share of the global smartphone market, as per IDC figures. This shift came amid a global decline in smartphone shipments, which fell by 3.2% to 1.17 billion units. High inflation contributed to consumers' reluctance to upgrade their devices. Additionally, Samsung grappled with internal challenges, including legal issues involving its executive chairman, Lee Jae-yong. Despite these setbacks, Samsung made a significant comeback in early 2024, becoming the top smartphone seller again in the first quarter, largely aided by the launch of its flagship Galaxy S24 phone.

  • 4-3. Impact on Consumer Upgrades

  • Apple hopes its introduction of Apple Intelligence will encourage consumers to upgrade their iPhones to take advantage of the new AI capabilities. Samsung, however, is taking a different approach by rolling out its Galaxy AI features to older phone models. This inclusive accessibility strategy allows existing users to experience AI benefits without immediately needing to buy new devices, potentially leading to future sales when they decide to upgrade.

  • 4-4. Distinct Approaches to AI Integration

  • Apple and Samsung have distinct strategies for integrating AI into their devices. Apple focuses on enticing consumers to purchase the latest iPhone models to access Apple Intelligence’s generative AI features. In contrast, Samsung is prioritizing widespread availability by offering Galaxy AI features on both new and older models. This approach aims to provide a broad user base with immediate access to innovative AI tools, fostering brand loyalty and potentially influencing long-term upgrade decisions.

5. Apple's Market Dynamics and Stock Performance

  • 5-1. Stock Market Impact of New Releases

  • Following the announcement of the new Apple Intelligence and the anticipated iPhone 16 release, Apple Inc. (NASDAQ: AAPL) shares saw a significant rise. On a specific Friday, Apple’s shares were up 1.74% at $225.40. Analysts have responded positively to these developments, with Oppenheimer and Evercore ISI reiterating their 'Outperform' ratings and setting new price targets of $250.00. Maxim Group, while maintaining a 'Hold' rating, adjusted its price target to $195.00. These developments reflect a strong market response to Apple's AI integration and upcoming product launches.

  • 5-2. Legal Issues Influencing Stock Prices

  • Apple is currently facing new accusations from Epic Games regarding the blocking of its efforts to launch a game store on iPhones and iPads in Europe. According to Epic Games, Apple rejected the Epic Games Store notarization submission twice, citing similarities in button designs and labels to those used by the App Store. Epic claims these rejections violated the Digital Markets Act (DMA). Despite these legal battles, Apple managed to get the marketplace app of Epic Games Sweden AB approved for iPhones and iPads in Europe.

  • 5-3. Predictions and Analyses by Leading Firms

  • Several leading firms have weighed in on Apple’s stock performance amid its new product announcements. Oppenheimer and Evercore ISI have set optimistic price targets, while Rosenblatt upgraded Apple from 'Neutral' to 'Buy' with a new price target of $260.00. JP Morgan also reiterated an 'Overweight' rating, setting a price target of $245.00. Despite some challenges, Apple’s new AI features and product upgrades have led to a generally positive outlook among market analysts.

  • 5-4. Trade-offs and Comparisons with Other Tech Giants

  • Apple’s performance is compared closely with other tech giants such as Amazon, Microsoft, and Tesla, which are part of the 'Magnificent Seven'. While Apple shares are up about 15% this year, they are slightly trailing the S&P 500’s 16% year-to-date return. Despite this, the company’s strategic advancements in AI and hardware updates are maintaining investor interest. Compared to its peers, Apple’s AI integration is seen as a late but significant move, positioning it with a premium valuation among the tech giants.

6. Public Previews of Apple’s New OS Features

  • 6-1. User expectations and beta trial feedback

  • Users have high expectations for macOS Sequoia and iOS 18, particularly with the introduction of Apple Intelligence. However, many anticipated features will not be available at the initial launch, as numerous functionalities are still in beta and will be deployed later in the year. This limitation has been a point of discussion among users and tech reviewers, emphasizing a mix of excitement and impatience. For example, users look forward to iPhone mirroring and enhanced Siri capabilities, but these features were absent in the first round of betas.

  • 6-2. Integration with third-party apps like ChatGPT

  • Apple Intelligence aims to enhance user productivity with integrated AI features, many of which are being compared to functionalities currently available in third-party apps like ChatGPT. For instance, ChatGPT’s Mac app offers users the ability to analyze files, write, and summarize content, functions that Apple Intelligence is expected to provide once fully implemented. This current availability of similar features in ChatGPT allows users to get a taste of what’s coming with Apple Intelligence, albeit with some privacy concerns related to data sharing with third-party platforms.

  • 6-3. Comparisons with OpenAI’s and Google’s AI initiatives

  • Apple’s AI integration has been widely compared to initiatives by OpenAI and Google, focusing on functionalities such as document summarization, contextual responses, and seamless interaction across devices. ChatGPT, for example, has already implemented features that analyze user files and provide contextual information, setting a benchmark for Apple Intelligence. Google’s AI initiatives, similarly, showcase advanced uses of AI in everyday tasks, putting pressure on Apple to deliver equivalent or superior capabilities. The ongoing comparison highlights the competitive landscape of AI technology among tech giants.

  • 6-4. Upcoming functionalities in macOS Sequoia and iOS 18

  • macOS Sequoia and iOS 18 bring a suite of new functionalities, such as enhanced productivity tools, improved communication features, and advanced AI integrations. Specifically, macOS Sequoia introduces Apple Intelligence, which offers personalized recommendations and smart responses. Features such as iPhone mirroring and a reimagined Siri that can interact with system files are crucial highlights. On the other hand, iOS 18 promises improvements to the Messages app, Math Notes, and a new Passwords app, although some features will not be ready at launch and will roll out incrementally.

7. Conclusion

  • In summary, the advancements in iOS 18 and macOS 15 Sequoia, particularly through Apple Intelligence, represent a major leap in AI integration, enhancing user interaction via personalization and smarter responses. Apple’s competitive stance against Samsung, including the deployment of Galaxy AI, underscores the fierce race for AI supremacy. Notwithstanding some obstacles such as stock volatility and legal confrontations, Apple’s innovative approach in AI and operating system updates positions it strongly for future growth. This analysis highlights the transformative role of AI in consumer technology, with Apple poised to continue pioneering these advancements. To address existing limitations, future improvements could focus on the timely rollout of beta functionalities and broader device compatibility. As AI technology evolves, users can expect more seamless and intelligent interactions across their devices, pushing the boundaries of what's possible in everyday tech.

8. Glossary

  • 8-1. Apple Intelligence [Technology]

  • Apple Intelligence is Apple's latest AI technology integrated within iOS 18 and macOS 15 Sequoia. It improves user interaction through personalized experiences, smarter notifications, and advanced Siri capabilities. This technology marks a significant step in the evolution of AI in consumer electronics, emphasizing natural language understanding and context-aware interactions.

  • 8-2. iOS 18 [Operating System]

  • iOS 18 introduces several new features such as customized Home Screen layouts, enhanced Messages and Mail apps, security updates in the Passwords app, and improved gaming experiences through a new Game Mode. It also brings advanced accessibility features and integrates Apple Intelligence to offer a more personalized user experience.

  • 8-3. macOS 15 Sequoia [Operating System]

  • macOS 15 Sequoia comes with Apple Intelligence, iPhone Mirroring, revamped system settings, enhanced productivity tools, AirPods and Bluetooth updates, and a Welcome Screen for setup improvements. The new release focuses on integrating AI to boost performance, user interface improvements, and seamless ecosystem integration.

  • 8-4. Galaxy AI [Technology]

  • Galaxy AI is Samsung's AI technology, which competes directly with Apple Intelligence, aiming to offer sophisticated AI features to entice consumers. Samsung's approach focuses on making these features available to a broader range of users, including those with older device models, as opposed to Apple's focus on newer device models.

9. Source Documents