Bank of America says Meta’s Muse highlights a new risk for Apple’s services revenue
In a new investor note issued today, Bank of America says Meta’s new Muse AI agent highlights how third-party AI agents could increasingly bypass Apple’s ecosystem and threaten its services revenue. Here are the details. more…
Bank of America has issued a warning that Meta's new AI agent, Muse, could pose a threat to Apple's services revenue. In an investor note, Wamsi Mohan highlighted how third-party AI agents like Muse could bypass Apple's ecosystem and steal product discovery, referrals, and transactions that currently occur within Apple's platform.
Muse has gained significant traction, with over 3.4 million downloads in just ten days, surpassing ChatGPT in the US App Store. Mohan maintains a "Buy" rating on Apple shares with a price target of $370, but acknowledges the risks posed by AI agents. He argues that Apple needs to improve its services, silicon, payments, privacy, and Siri AI capabilities to compete with the "economics of user intent" offered by AI agents.
Despite the challenges, Mohan believes Apple's massive installed base and privacy reputation could be key advantages in convincing users to trust AI agents with sensitive tasks.
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