00:00So, Mandeep, it seemed like the succession plan to go from Cook to Ternus was kind of telegraphed.
00:06I mean, Bloomberg reported this a few weeks ago that he seemed to be the front runner here. Were you
00:10surprised?
00:11No, I mean, look, on the hardware side, clearly this company has done very well.
00:17And, you know, having a leader internally who has led hardware makes a ton of sense.
00:23And, look, there are a lot of questions that remain around Apple's strategy with generative AI.
00:30Why are they not investing in CapEx when all of their peers are ramping up CapEx and really talking big
00:36numbers?
00:37And they have done that for over two years and Apple has missed out.
00:41So I think the challenge is there.
00:43But if there was anyone internally who I would have thought it would be someone from the hardware division.
00:49And so from that standpoint, it makes a ton of sense.
00:52It's interesting to see shares drift a little bit lower here.
00:56I'm not sure if you can make too much of a, you know, nine-tenths of a percent move lower.
01:01But I am curious what you make of it.
01:04Anyways, you know, SaaS is getting crushed.
01:07Software is in a state of limbo.
01:10So I think even from that standpoint, it could have been worse, you know, had they appointed someone who wasn't
01:18from hardware.
01:19And I am emphasizing hardware because when it comes to data centers and all the other stuff that's going on,
01:26everyone is thinking about with LLMs, what is the next hardware going to look like for Apple?
01:32And we know right now all the LLMs are run at the data center level.
01:37But at some point, it will be run on edge devices.
01:40And that's where, you know, hardware and Johnny Ive going to Apple.
01:44So there are a lot of aspects that Apple has to navigate when it comes to that next iteration of
01:50hardware.
01:51And to my mind, it could have been worse if they appointed anyone else.
01:55Well, I am curious, though, about that.
01:57I mean, you talk about sort of edge hardware being sort of the thing that sort of drives the AI
02:01revolution forward.
02:03Was there not an argument to be made of having somebody maybe in charge who was a little bit more,
02:07I guess, on the software and the engineering side?
02:10Or does that not matter?
02:11Well, I mean, look at what Apple has been doing around software.
02:15They haven't really focused on, you know, building their own LLM.
02:19They haven't invested in, you know, setting up data centers.
02:23So there isn't much other than the fact that they are partnering with Gemini.
02:28And, you know, the next version of Siri will likely be powered by Gemini.
02:32But to my mind, as long as Apple controls the distribution through hardware, they will partner with whoever has the
02:40best LLM, whether it's Gemini or Anthropic or OpenAI.
02:44And from that standpoint, they still have that lock when it comes to, you know, consumer devices and the ecosystem
02:50they have.
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