00:00The new Apple upgrade program designed to make your upgrading your device feel more like a
00:04subscription. There's Mark Gurman here with the latest power on from this weekend. It's been
00:10really interesting to see the rollout of this. What are you trying to capture in this power on?
00:14Where do you think this is headed? Yeah, the fact of the matter is, is that you're going to see
00:20a
00:20change over time from sticker prices to subscription prices. The carriers have been trying this for
00:25years. It's been extremely successful for the carriers in the U.S. internationally. Obviously,
00:31Apple has gotten on a really good schedule with its new products, obviously new iPhones and Apple
00:37watches every September. The iPad cadence has really become fall and spring. The Mac, you know,
00:43depending on which Mac you get, you're thinking fall or spring as well. And so there are upgrade
00:49cycles for consumers, right? Maybe I'm going to get a new phone every three years. Maybe I'm going to
00:53get a new computer every five years. But making it a subscription is going to get people into
00:57getting a new phone more frequently. They could give those phones then back to Apple. Apple could
01:02resell them on secondary markets. They can reuse the parts for new devices, right? Which creates a big
01:08cost savings and improved margins for them there too, as well as that secondary phone business.
01:13And then the consumer is paying on a recurring schedule. So the payments to Apple never stop.
01:18And over the long term, you're going to see Apple creating far more revenue and profit because
01:23of this program. In fact, Wall Street has been begging Apple to do this for over half a decade.
01:27And so it's a long time coming. So this weekend, I did my first Apple upgrade. I took my 2020
01:33Mac Air with an M1 chip. And I took the latest Mac Air 13 inches with an M5 chip. And
01:40I did the math.
01:40And it's a great deal. Basically, I can trade in still and still do the Klarna Apple upgrade.
01:46The thing that jumped out is I got to wait three weeks for that Mac Air. That's still an issue.
01:51Yes. So as we wrote in Power On as well this weekend, the Mac Studio and the Mac Mini, those
01:57are no longer the only Macs with extreme supply shortages. Now it's the most popular Mac, which
02:02is, of course, the MacBook Air. And new orders of the MacBook Air are not arriving at this
02:05point until early September. So you're seeing the supply chain shortage shift from niche
02:10computers to the company's most popular computer. So that's not necessarily great.
02:14And so what they're doing now in terms of their marketing online and in stores, they're pushing
02:19people towards the base level M5 MacBook Pro, the 14 inch, which they have a lot of supply
02:26of still. And they want to sort of dwindle that down because they're launching the new
02:30M6 version in just a couple of months from now.
02:33Mark, just very quickly, we have a story on the terminal about how Apple's Siri AI stacks
02:37up against the new ChatGPT. What do we need to know?
02:41Mark, Apple has a huge advantage by having Siri AI built into every iPhone now that can
02:47run iOS 27 and the latest large language models. It's competent, right? The promise of Siri has
02:53been there for 15 years. It's never really worked. Now it works. It's nowhere near as good or
02:58as capable as ChatGPT.
03:00Right.
03:01But the floor has improved tremendously.
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