00:00Ryan, it feels like a complete reversal of the narrative last year, which was Apple's behind on AI. It's a
00:06problem. It's not investing in in the in the applications of AI not keeping up. So what is this a
00:12good thing for Apple now?
00:14Yeah. Good morning. Thanks for having me. Absolutely. If you look at all the major AI concerns that are in
00:19the market right now, it's kind of amazing how much Apple has completely sidestepped them. So if you're worried about
00:25big tech CapEx, Apple isn't really spending.
00:27If you're worried about AI eating software, Apple isn't really software. If you're looking about worried about AI disruption more
00:33broadly, Apple isn't really participating in any of the areas that are being hit by these disruption fears.
00:39However, if you are optimistic about AI, Apple devices are probably going to be the major way that people access
00:45AI services.
00:47So it does seem like it isn't really part of any of the major concerns, but it could participate in
00:51any upside.
00:52And right now that has really allowed the company to decouple itself from some of the broader concerns out there.
00:58Like we saw yesterday, Apple rose pretty strongly, even as the overall market fell.
01:03How then do the concerns play in of them not keeping up with AI, of not getting there, Ryan?
01:10And I mean, surely that's still something that would weigh on shares if they haven't fully integrated into their systems.
01:16And then they become they fall behind on Google, for example, on Androids that can more easily integrate systems like
01:22Gemini.
01:23Well, a few weeks ago, they came out with a big announcement, multi-year agreement with Alphabet for Google to
01:29basically run the AI tech on Apple devices, including Siri.
01:33I know they were going to be working on their own version of Siri that was updated with AI.
01:37We just reported last week that that was potentially delayed.
01:40But the fact that they are able to work with Google the way they did for search on the iPhone,
01:45that is something that is of great comfort to people.
01:48The idea that you're able to work with all these providers, all these big LLMs are going to have apps
01:52on the iPhone that allows people to access these services, even if they're not directly from Apple.
01:57So I don't think it's the idea that everyone's going to be using AI, but it's not available on the
02:01iPhone.
02:01That's not how it's going to be. And I don't think the fact that they have their own, you know,
02:05in-house LLM is something that's going to be as big a concern if people are already able to access
02:10those services through other providers on the iPhone.
02:14Ryan, one of the other stories, Mark Gurman reporting on this exclusively late yesterday, that Apple is also looking into
02:20other AI hardware devices.
02:22I wonder how this is going to go for them, considering they put a lot of effort into their VR
02:26headset and there was some fanfare around it.
02:28But it doesn't seem to really have had a life beyond that.
02:31Yeah, what's interesting about this to me is that if you do look out over a longer term basis, talking
02:36five, ten years from now, I've seen some people talk about the idea that these kinds of VR and AR
02:42headsets and glasses, this could be sort of an iPhone killer.
02:45So if you're constantly using that as your access point for technology or however you're accessing these services instead of
02:50your phone, that's sort of be very interesting to me.
02:53What does this mean for the business longer term?
02:55Of course, it's so very early in this technology, even Meta's glasses, which I think they have partnerships with Ray
03:01-Bans and some other major providers like that.
03:03Even those aren't, you know, ubiquitous in the same way phones are.
03:06But the fact that Apple is getting into this, it does indicate that maybe the next generation of technology is
03:11going to be more glasses focused and maybe less on the phone, although that's just purely speculation.
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