Apple (AAPL, Financial) looks ready to kick off its AI monetization era with system-wide updates at WWDC 2025, Wedbush's Daniel Ives says, setting the stage for paid AI features across the Apple ecosystem.
The keynote at 1 p.m. ET today at Apple Park will unveil “'26” upgrades for macOS, iOS and iPadOS powered by Apple Intelligence, countering Street skepticism about a slow AI rollout.
In his Monday note, Ives argued that WWDC marks the start of Apple's AI cash flow, not a mere feature demo, as the company layers new AI-driven capabilities into core OS updates.
He expects details on Siri's deeper integration with Google's Gemini and OpenAI's ChatGPT, demonstrating how Apple will embed AI across native apps to drive user engagement—and, ultimately, device upgrades when iPhone 17 ships next year.
With over 100 million iPhones in China due for an upgrade, Ives also eyes an announcement on Apple's partnership with Alibaba (BABA, Financial) to deploy AI services locally, a move he calls critical for unlocking growth in the world's largest smartphone market.
Wedbush reiterates its Outperform rating and raises its 12-month price target to $270, noting that Apple's edge isn't in building the most advanced large language model but in “toll-collecting'' on its vast hardware base.
Apple's unmatched ecosystem ensures that any third-party AI app must run through Cupertino, highlighting how AI unlocks new services revenue without upending its product strategy.
Why It Matters: WWDC's AI announcements could shift Wall Street sentiment, validating Apple's long-term AI strategy and fueling expectations for recurring software revenue beyond hardware sales.
Investors will watch for concrete details on AI feature pricing, Siri-Gemini integrations and the Alibaba tie-up during today's keynote and in the follow-up developer sessions.
