Apple Expecting Strong Holiday Season

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00:00And $140 billion is what the math reads out as of what their holiday quarter will look like,

00:05important when April is their 50th anniversary.

00:08Yeah, it's quite interesting. They normally, in the last half a decade or so since the beginning

00:12of COVID, haven't really given guidance. But for this holiday quarter, they're back to that. So

00:18they said that the quarter would grow 10 to 12 percent. That's the current quarter of the holiday

00:22period. And that comes in anywhere between around $135 to $139 billion. Typically, when they've

00:29given guidance in the past, they've been conservative. So they like to sort of smash

00:34through that. And so you can imagine that internally, they're aiming for something north

00:39of $140 billion, which obviously would be quite impressive, given where they've been the last few

00:44years. And therefore, take us where they're going in the next year or so, because PowerOn really

00:49outlines the myriad of areas they're trying to leap forward on, not just Siri, but real hardware and

00:54chip updates too.

00:56Yeah, there's a lot going on. You're going to see a series of M5-related updates to the Mac,

01:01things like the Mac Mini, the Mac Studio, the MacBook Air and the MacBook Pro across the first

01:08nine months or so of 2026. You'll see a foldable iPhone at the end of 2026, perhaps the introduction

01:17of the smart glasses at the end of 2026. The first three, four or five months of 2026 are going to be

01:24chock full of things, a push into smart home devices, that HomePod with the display, the MacBook Pro and

01:30MacBook Air I mentioned, a ton of things on the software side related to Siri. So it's going to be

01:35a pretty jam-packed year for 2026. And then you go into 2027, where you're going to see even more

01:41major leaps and bounds when it comes to hardware.

01:44And will it be the same people at the top? How do you see the talent and the focus and reworking

01:48of Apple continuing amid its 50th anniversary?

01:53You know, Apple's biggest challenge right now is retaining talent, specifically for its AI division,

01:59its machine learning folks. They're bleeding talent to places like Meta, to Anthropic, to XAI. It's been

02:08very difficult for them to hold on to people because Siri, really, it has a really bad reputation.

02:15One of the big things they're going to be doing for Siri to improve it is using a custom model

02:21developed by Google's Gemini team. It's going to run on Apple servers, but Apple's paying Google to

02:26develop it. And that's a bit of a setback for Apple's internal models team. And so they basically,

02:32for now, have split it, whereas the models that run on Apple devices themselves, the ones for Apple

02:38intelligence, those are those in-house models, which have been somewhat problematic, depending on who you

02:43ask. And then for the Siri models, they're moving to Gemini to power some of it. So it's an interesting

02:49dynamic they've created there.