Apple (NASDAQ:AAPL) announced its M4 chip on Tuesday at its "Let Loose" event. The chip will be coming to Apple's next generation of devices, beginning with the iPad Pro.
It is said the M4 chip in the new OLED iPad Pro will help improve AI-related tasks in iPadOS. The new iPad Pro also has upgraded camera modules to take better images, as well as an adaptive flash to improve capture for document scanning tasks.
During the event, Apple shed light on the AI capabilities of the M4 chip, boasting a new neural engine that makes it "an "outrageously powerful chip for AI." Apple claims that the M4 chip can deliver the same performance as the latest PC chips, all while consuming only a quarter of the power.
At the event, Apple also announced the redesigned 11-inch and all-new 13-inch iPad Air, which is "supercharged by the M2 chip."
Apple's announcement of the iPad Pro with the M4 chip comes less than two weeks before Microsoft holds its Windows and Surface AI event on May 20th, during which it is expected to be launching new Arm-powered hardware.
Following the announcement, analysts at Investing.com said historically, the "iPad has been a testing ground for Apple products, a less scrutinized line that allows the company to experiment without the risks associated with doing the same with the iPhone or the Mac."
"Against this backdrop, analysts do not think Tim Cook's main aim here is to solve Apple's sales problem with this line specifically but rather to lay the groundwork needed for better, more innovative products in the months ahead."
Analysts say Apple can do two things with the iPad launch, "which may be just as important as direct sales right now."
Firstly, they say Apple can "test the functionalities of the new M4 chips at a less risky part of the operation. In addition, they can "create tremendous expectations for future iPhone/Mac products."
"While the remaining features may have disappointed investors who were expecting more groundbreaking innovation, analysts think this puts Apple on the right path to reconquer sales growth in the mid-term via a (finally) working application of AI hardware-to-software direct integration," they add.
The Investing.com analysts feel that alongside the recently announced buybacks and positive sales in Apple's Mac division, the latest announcement could drive investor sentiment back into the stock.
"If Tim Cook manages to show that the new chip line is finally the groundbreaking innovation for Apple products we have been waiting for years, this could mark the start of Apple's new growth cycle," they declare.