Nvidia’s $750 billion surge in market value this year, driven by soaring demand for AI chips, has investors scrambling to find the next trillion-dollar AI winner. AI is widely seen as the best investment opportunity of our lifetimes, and while Apple has been relatively overlooked as an AI play, the tech giant could quickly become a force to be reckoned with in the space.
The reason for this is simple, Apple can bring AI to the consumer’s pocket by the billions, and is rumored to be sitting on one of the best AI models on the market today with comparable performance as OpenAI’s ChatGPT.
Apple’s installed active device base surpassed 2 billion in February this year, and “reached an all-time high in every geographic segment” at the end of the June quarter, according to comments from CFO Luca Maestri. The iPhone’s installed base also “grew to a new all-time high,” and is estimated to have nearly 1.5 billion active devices worldwide, after adding around 500 million active devices since 2019 – an 11.4% CAGR since then.
The opportunity for Apple to capitalize on AI arises from the combination of growth within Apple’s installed device base, along with increased engagement and adoption of paid subscriptions over time. Consumer interest in AI surged earlier in 2023 with ChatGPT garnering over 100 million active users and more than 1 billion visits monthly. Apple’s installed base offers the chance to more than 10x the number of individuals with readily available access to AI.
In Apple’s case, it has nearly three times the paid subscription base as Microsoft that it could target with an AI product, via a stand-alone service or in one of its three pre-existing service bundles. Regardless of the route that Apple chooses, there remains billions in revenue potential.
MacDailyNews Take: Apple has made significant strides in the fields of Artificial Intelligence and Machine learning over the years and its efforts are accelerating. Some of Apple’s notable achievements include:
• Core ML: Apple’s Core ML is a framework that allows developers to integrate machine learning models into their iOS apps. Core ML supports a variety of popular machine learning tools and techniques, such as neural networks and decision trees.
• Face ID: Apple’s facial recognition technology, Face ID, uses AI and machine learning to recognize a user’s face and authenticate their identity. Face ID is used on the iPhone and iPad, and is considered one of the most secure forms of biometric authentication.
• Siri: Apple’s voice-activated personal assistant, Siri, is one of the company’s most well-known AI applications. Siri uses natural language processing (NLP) and machine learning to understand and respond to spoken requests from users.
• Apple Neural Engine: Apple’s custom-designed Neural Engine is a chip that is used in some of the company’s devices, including the iPhone and iPad. The Neural Engine is designed specifically for machine learning tasks, and is used to power features like Face ID and Siri.
• Machine Learning Research: Apple also conducts research in the field of machine learning, with a particular focus on developing techniques that can be used to improve user privacy. For example, Apple has developed a technique called “differential privacy,” which allows data to be analyzed without revealing individual users’ personal information.
See also: Apple CEO Cook: ‘Of course we’re also researching generative AI’ – September 29, 2023
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I love Apple but Siri is still unforgivably bad. It’s an embarrassment. My only hope is that Apple is working on getting the hardware right to unleash a top secret AI powered Siri that will knock our socks off. One can only hope.