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Investing.com -- Apple’s iPhone 17 launch may not mark an AI breakthrough for the company, with Lynx Equity Strategies arguing that Google could emerge as the bigger beneficiary.
“After months of vacillation, we think Apple has taken the only path available – largely abandon its Siri foundational models and give in to Google AI models,” Lynx said.
While investors initially welcomed the tie-up, Lynx questioned “at what cost?”
The analysts believe Google’s Gemini platform is set to displace Apple’s internal models, giving Google increasing leverage.
“Apple’s access to Google AI services may not come for free; Apple may have to pay for it, either in $s or by sharing user data,” Lynx wrote.
If Google’s voice and search tools are rolled out across Apple’s installed base, “that sounds like a Google win.”
Lynx also flagged performance concerns, noting the iPhone 17’s A19 chip could lag behind rivals.
“A19 would be the first time Apple has made no design improvements,” the note said, adding that its NPU performance may trail Qualcomm and MediaTek.
The broader issue, according to Lynx, is strategic. “In the AI future, with Google AI models powering Apple AI, we think Apple may lose the ability to offer differentiated AI services over the Android platform. If so, what justifies iPhone’s premium pricing?”
With Apple potentially ceding AI control to Google, Lynx cautioned that “Apple stock is likely to give up its recent gains” as investors reassess the balance of power in the smartphone market.