Apple has now launched its ChatGPT integration with Siri — an important move that could prompt people waiting on more artificial intelligence capabilities to finally update their iPhones. The news The added Apple Intelligence features — including the infusion of the OpenAI chatbot and new image-generating and editing tools — became available to the public Wednesday in the latest version of the company’s mobile operating system, iOS 18.2. Apple provided a test version of the update to software developers back in October. What’s so exciting about the new iOS 18.2 release? It introduces a more powerful Siri, which gives users asking more complex questions the option to seamlessly get answers from ChatGPT, as well as Apple’s AI image-generating app Playground and its new Image Wand removal tool. Artificial intelligence Genmojis are also part of the update. To be sure, Apple Intelligence is only available on newer Apple devices, specifically the iPhone 15 Pro and this year’s iPhone 16 models. In recent years, people have been holding onto their devices for longer — up to four years. So, it’s about the time that users with older models, purchased during the Covid pandemic when many upgraded their devices and computer technology, could take action. AAPL 5Y mountain Apple 5 years Shares of Apple rose roughly 1% on Wednesday, following eight sessions in a row of all-time intraday highs. The stock on Tuesday posted a record-high close for the third straight day. Big picture Apple Intelligence — first introduced by CEO Tim Cook at the company’s annual Worldwide Developers Conference back in June — was expected to usher in a robust iPhone refresh cycle. While still expected, device upgrades have gotten off to a slower-than-anticipated start — largely attributed to the AI features not being available when the new iPhone 16 lineup was launched back in September. While some of the AI tools were released in October, they were lackluster. Wednesday’s rollout of the ChatGPT integration with Siri, however, was highly anticipated and could be the push to get prospective iPhone upgraders off the fence. Certain Macs and iPads will have access to the newest AI features as well. And, there’s more to come. Apple plans to release another AI update next year. It’s expected to include additional Siri upgrades, including the ability for the digital assistant to take actions inside of apps. As Jim Cramer has posited, some Wall Street analysts also think that the piecemeal release of Apple Intelligence can work to the company’s advantage. Citi on Tuesday named the megacap name a top pick for 2025. “Overall, a staggered rollout of iOS18.2/3/4 Apple Intelligence features makes [iPhone 16/17] cycle different from prior cycles,” said the Citi analysts, who reiterated their buy rating on the stock. “Rollout of iOS18.2 in December will be an important determinant for the pace of iPhone replacement in the coming quarters.” They added, “We remain optimistic about [the] iPhone 17 refresh cycle.” Bottom line Jeff Marks, director of Club portfolio analysis, said Wednesday that as more and more iPhone users upgrade and start using the Apple Intelligence features word-of-mouth should get more people to stop dragging their feet. “It seems like it’s going to be a word-of-mouth situation. As people get the phone and they show some of these new features to their friends, maybe there will be some [fear of missing out] there and that leads to the upgrade cycle,” he added. “That’s why the stock keeps going higher,” Jim said, adding that Apple shares trading at nearly 33 times forward earnings-per-share estimates will look cheap when EPS estimates need to be raised to account for the iPhone cycle heats up. Apple’s forward price-to-earnings ratio averaged 26.5 times over the past five years. It’s not just devices. AI adoption also could boost Apple’s high-margin services business if users are willing to pay monthly fees to access additional Apple Intelligence features down the line. Jim has said that “AI will be a hit” for Apple and revenue streams for the services business “could go up dramatically” because of it. (Jim Cramer’s Charitable Trust is long AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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Apple has now launched its ChatGPT integration with Siri — an important move that could prompt people waiting on more artificial intelligence capabilities to finally update their iPhones.