Reports suggest that the upcoming Apple iPhones might come with an artificial intelligence boost from tech giant Google.
According to sources, Apple is in discussions with Google to integrate Google's Gemini AI engine into the iOS system of iPhones. While no official confirmation has been made by either company, Bloomberg reported this potential collaboration on Monday.
Financial experts on Wall Street believe that this partnership could be advantageous for both Apple and Google in various ways.
"The key point to consider is that Apple could potentially benefit financially from Google for this integration, particularly if it helps Google increase its search revenue," noted analysts at Melius Research in a recent report. "As for Google, it would mark a significant achievement in the AI field, potentially overshadowing competitors like Microsoft and OpenAI following some setbacks in their AI product launches."
According to analysts at Melius Research, Apple is rumored to be focusing on enhancing Siri, improving the App Store for AI developers, and advancing edge processing on its devices for quicker and more secure user experiences.
On the other hand, Google's Gemini has faced challenges since its rebranding last month. The tech giant had to suspend the Gemini artificial intelligence chatbot from generating images due to inaccuracies in historical depictions it created. Examples included Nazi soldiers depicted as Black and Asian individuals and popes portrayed as female, leading to an apology from the company.
Dan Ives, a senior equity research analyst at Wedbush Securities, mentioned that Apple's interest in a potential deal is driven by the desire to boost iPhone sales and strengthen its AI capabilities for future releases.
"This move will provide Apple with the foundation and technology roadmap to enhance the AI features currently in development at Apple Park, setting the stage for the iPhone 16 to potentially revolutionize the market with its AI functionality," Ives explained.
