Apple Intelligence: Rising Demand Among Consumers Despite Investor Skepticism

Morgan Stanley’s report indicates that consumer perception of Apple Intelligence is stronger than investor sentiment. An increasing number of iPhone owners find the AI platform essential, with a marked rise in the willingness to pay for its features, pointing towards potential significant revenue growth in the future.

According to Morgan Stanley’s recent research, consumers view Apple’s AI platform more favorably than investors. The report highlighted that 80% of eligible U.S. iPhone users have engaged with Apple Intelligence in the past six months, which has garnered a net promoter score of 53. Users describe the platform as “easy to use, innovative, and something that improves their user experience.”

Despite criticisms surrounding Apple Intelligence from the public, Morgan Stanley’s survey reveals a positive perspective from iPhone owners. Since September, the percentage of users considering Apple Intelligence essential for their next iPhone has increased by 15 points to 42%. Among those planning to upgrade within a year, that figure surged 20 points to 54%.

Additionally, consumers are now more willing to pay for Apple Intelligence, with average monthly willingness rising from $8.17 in September to $9.11. This 11% uptick reflects the growing value placed on the AI support by users.

Morgan Stanley anticipates potential long-term monetization for Apple Intelligence, estimating annual revenues in the tens of billions given a global user base of 1.4 billion iPhones and increasing adoption rates. Apple introduced its AI features in June, aiming to enhance device interactions while ensuring data privacy, although the initial rollout faced challenges including user complaints about inaccuracies.

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In summary, Morgan Stanley highlights a disparity between consumer and investor perceptions of Apple Intelligence, with a notable increase in user engagement and willingness to pay. As more users recognize the benefits of Apple’s AI features, the potential market for its monetization appears promising, especially with a large global iPhone installed base. Despite some operational hiccups, Apple aims to solidify its AI offerings for an enhanced user experience.

Original Source: www.pymnts.com