Apple Inc. stock pared earlier losses on Tuesday after news emerged that the company plans to open its artificial intelligence models to third-party developers. The move, expected to be officially announced at the Worldwide Developers Conference on June 9, signals a major strategic shift for the tech giant as it seeks to accelerate innovation and strengthen its position in the competitive generative AI sector.
Initially down nearly 1% in early trading, Apple shares recovered to close with a more modest decline of 0.4%. The change in sentiment followed reports that Apple will introduce a new software development kit (SDK) and supporting frameworks, enabling external developers to build AI-powered features and applications based on Apple’s large language models. These models currently underpin a range of iOS and macOS capabilities, such as notification summaries, text editing, and basic image creation.
By opening its AI models, Apple aims to foster a new wave of innovative apps and make its devices more attractive to both users and developers. The company’s strategy involves providing access to smaller, on-device AI models first, rather than more complex cloud-based systems. This approach is designed to encourage seamless integration of AI features within individual apps, as well as across entire applications, while prioritising user privacy and device performance.
Apple’s decision comes as it faces mounting competition from rivals like Samsung and Google, both of which have introduced advanced AI features in their flagship products. Despite launching its Apple Intelligence platform last year, Apple has encountered challenges in matching the adoption rates and capabilities of competing AI offerings. By empowering third-party developers, Apple hopes to bridge this gap and stimulate broader use of its AI technologies.
Market analysts have responded positively to the announcement, noting that the initiative could enhance the appeal of Apple’s ecosystem and drive future growth. The average one-year price target for Apple shares stands at $231.55, representing an 11% upside from current levels. Consensus among brokerage firms rates Apple as “Outperform,” reflecting confidence in the company’s long-term prospects.
As Apple prepares for its highly anticipated developer conference, investors and industry observers will be watching closely to see how the expanded AI toolkit is received and whether it can deliver the innovation and momentum needed to maintain Apple’s leadership in the technology sector.
