Apple iOS 18.1 adoptions double 17.1; signals interest in Apple Intelligence: Loop

Apple’s (NASDAQ:AAPL) latest update, iOS 18.1, for the iPhone, has already garnered double the adoption rate of iOS 17.1, indicating strong interest in Apple Intelligence features, according to Loop Capital.

“Apple Intelligence, which began rolling out with iOS 18.1 this past week, brings new features like advanced writing tools and an enhanced Siri,” said Loop analyst Ananda Baruah, in an investor note on Monday. “The full impact on iPhone demand and mix will become clearer as adoption continues. Notably, iOS 18.1 adoption is already double that of iOS 17.1, signaling strong interest in these new capabilities.”

While Loop reiterated its Buy rating on the stock, it also reduced its price target to $275 from $300. The $275 price target is 32x Loop’s $8.57 CY2026 earnings per share estimate.

“Apple Intelligence is a mix of on-device processing, supplemented by private cloud computing where private cloud compute takes place at AAPL data centers, and third parties,” Baruah said. “Apple data centers run solely on Apple silicon, waving the need for GPU spend.”

Apple Intelligence for the iPhone is limited to the iPhone 15 Pro and all the iPhone 16 models. It is also available on the Mac M-series and some iPad models. Apple unveiled a slate of new Macs last week, in addition to the release of iOS 18.1.

Berkshire Hathaway has sharply reduced its number of Apple shares this year, most recently slashing its holdings by 25%.

Apple dipped late last week following its latest financial results and outlook.