Morgan Stanley criticized the idea of Apple buying an AI search engine
By ForGeeks
Investment bank Morgan Stanley says it’s a flawed strategy for Apple to supposedly acquire an AI search company like Perplexity. The analysts emphasize: Apple has no intention of competing in the search segment directly.
Rumors of Apple’s possible purchase of an AI search-related startup have been hotly debated amid the company’s push to accelerate the development of its own AI features. However, in a new Morgan Stanley research note published July 22 (citing AppleInsider), analyst Eric Woodring calls such an idea “misguided.” He says Apple has no goal of entering the search market, despite its obvious lags in that area.
Analysts recognize that Apple should not expect any major launches within the Apple Intelligence platform in the third quarter of the calendar year (Apple’s fourth fiscal quarter). Instead, Apple will continue to develop its AI efforts as a long-term initiative.
Analytics recognize that Apple will not see any major launches in the third quarter of the calendar year (Apple’s fourth fiscal quarter).
By the backdrop of these estimates, Morgan Stanley maintains a positive outlook on Apple’s fiscal third-quarter 2025 results. The company will report on July 31, and analysts expect revenue of $90.7 billion – up 5.8% from the same period last year. The growth is being driven by strong iPhone shipments, an increase in the average price of the device, and solid demand for iPads and Macs.
Some focus on Apple’s services business, despite investor concerns following a court ruling against the App Store and the company’s refusal to release a forecast last quarter. Morgan Stanley forecast service revenue growth of 11.6 percent year-over-year.
Apple’s services business is expected to grow 11.6 percent year-over-year.
All in all, the bank maintains an “above market” rating on Apple shares and sets a target price of $235. That’s above current forecasts from HSBC ($220) and JPMorgan ($230).
The article Morgan Stanley criticizes idea of Apple buying AI search engine was first published on ITZine.ru.
