Bank of America: Apple is expected to achieve huge profits through "Smart Siri"

According to a Bank of America analyst, Apple (AAPL.US)'s "smart Siri" has not officially entered the market yet, but once launched, the company may make a fortune through it.

Apple announced its generative artificial intelligence software - Apple Intelligence at the Worldwide Developers Conference (WWDC) in June. This technology is expected to help users edit and summarize emails, generate images, and make Siri smarter and more practical. Although Apple introduced the iPhone 16 at the Glowtime event on September 9, the phone did not come with generative artificial intelligence features when it was launched on September 20.

This has raised many questions on Wall Street, such as whether the demand for iPhones will improve once Apple's intelligent technology is launched. Currently, several analysts' reports indicate that the demand for the iPhone 16 is relatively weak compared to the previous year's version.

Despite the lack of many dazzling highlights in the iPhone 16, it has not affected Apple's stock price. As of the close of trading on Tuesday this week, Apple's stock price has risen by 2.9% since the Glowtime event on September 9.

Bank of America Securities analyst Wamsi Mohan not only focuses on how artificial intelligence will change the operation of Siri but also sees the potential for Apple to profit from these changes. Mohan has rated Apple's stock as "buy" with a target price of $256. In his research report on Friday, he wrote that the company will turn Siri into a virtual assistant capable of tasks such as booking rides, ordering food, or scheduling meetings for users.

Mohan wrote: "This raises a question, which services will Siri recommend or book for users? Our answer is: whoever pays the most will be prioritized by Siri."

Some companies that may pay for these recommendations include Uber (UBER.US), Lyft (LYFT.US), and DoorDash (DASH.US). Mohan explained that if a user asks Siri to book a ride from the airport, Siri will provide multiple choices of ride-sharing companies and list the company that pays the most as the top choice.

Mohan stated: "We estimate that deep integration of Siri with apps could bring in $3 billion in revenue by 2026, and this number could reach close to $50 billion within ten years."

Mohan's optimism comes at a time of uncertainty for Apple investors. Initially, Wall Street was excited about the prospects of Apple Intelligence, believing it had the potential to drive user upgrades to iPhones. However, Apple stated at the Glowtime event that the software has not been launched in the U.S. yet, and global promotion in other languages will take longer. This has led some analysts to lower their expectations on whether users will actively purchase the new iPhone this year or even next year.

On Friday, Apple's stock price rose by 0.12% to $227.79. The stock has risen by 18% year-to-date, while the S&P 500 index has risen by 20% during the same period