The first new Apple Inc (NASDAQ:AAPL, ETR:APC) iPads since late 2022 did not move the dial much for analysts, as the company refrained from teasing any real artificial intelligence offerings or services
This had been the subject of some "market chatter" in the run-up to the launch but this discussion now seems likely to be deferred until the Worldwide Developers Conference next month, said UBS, which feels the new iPad Pro could "cannibalise" sales of Mac laptops.
Bank of America said the launch of new iPad Air 6 and iPad Pro models showed off some "impressive" new hardware, with the Pro featuring an advanced Neural Engine in Apple's new M4 chip, enabling AI functionality, while the Air comes with the M2 chip.
But BofA did not change its forecasts and maintained its 'buy' rating on Apple as a "beneficiary of GenAI at the edge, with gross margins upside and momentum in services".
In addition to the two new iPads, ancillary products like a new 'Magic Keyboard' and 'Apple Pencil Pro' were also announced, as expected.
However, said UBS, the new products only incorporate "modest changes" in tech specs and design relative to prior models.
What's more "the company did not tease any offerings or services related to its AI efforts likely deferring a discussion until WWDC in mid June".
The Swiss bank felt the key 'product' update was the as-expected announcement of M4 silicon, using 3-nanometer technology in the Pro.
Including the new Magic Keyboard with a function row, the new iPad Pro 13-inch, with an ASP starting at $1,300 before the cost of the $350 keyboard and 516GB of memory "will be increasingly seen as a Mac replacement product in our view".
It noted that during the most recent earnings call, Apple guided iPad rev for the June quarter to be up double digits, following five prior quarters of iPad revenue declines.
"If iPad Pro cannibalizes Mac units given new silicon and keyboard functionality (function row and larger trackpad), the category could be stronger than expected. In that scenario, we believe the market would likely view the Mac and iPad units on a combined basis to account for the blurring of lines and changing customer preferences."