Citigroup Bullish on Apple's Future Amid Low WWDC Expectations and AI Delays

Citigroup has issued a "buy" rating for Apple Inc. (AAPL.US), setting a target price of $240. The bank believes that investor expectations for Apple's Worldwide Developers Conference (WWDC) set to take place in June 2025 are relatively low.

The WWDC25 is scheduled to commence on June 9th with the theme "Breakthrough Updates Coming to Apple Platforms." The event is anticipated to reveal the latest software updates for iPhone, iPad, Mac, and other devices, as well as new features in Apple Intelligence.

Even though the delay of the AI-enhanced personalized Siri feature until 2026 has exerted pressure on stock prices, Citigroup is confident that Apple's full-stack approach ensures a competitive advantage in the era of personal AI service devices. Apple boasts the capability to design its own chips, seamlessly integrates hardware, software, and service ecosystems, and possesses a vast user base of 2.35 billion individuals, allowing continuous optimization of user experience.

Apple plans to rename its operating systems based on years, meaning the systems announced at WWDC 2025 will be designated iOS 26, macOS 26, iPadOS 26, etc. Beyond naming changes, multi-device user interfaces are projected to experience substantial innovations, aiming for a more uniform and simplified design, notably similar to the Vision Pro operating system. Citigroup believes these enhancements highlight Apple's ongoing commitment to creating a more consistent and integrated ecosystem while prioritizing spatial computing.

Alongside all operating system updates, Citigroup believes that the focus will continue to be on the upgrades of Apple Intelligence. With the delay of Siri's major update within the iOS 18 cycle, Apple is likely to release a deeply integrated personalized Siri within the iOS 26 cycle, though the specific release time remains uncertain. The bank predicts Apple Intelligence functions will extend to more regions and potentially involve new LLM partners besides OpenAI (such as Gemini).