When it comes to Apple Intelligence, the biggest payoff for investors could be yet to come, and it’s not currently in any Wall Street spreadsheets.
Tiernan Ray for Fast Company:
Apple investors breathed a sigh of relief on June 10th when the company’s CEO, Tim Cook, and his deputies held a two-hour presentation about their intention to bring artificial intelligence to the iPhone, iPad, and Mac. Apple had been seriously lagging the giants of AI, Microsoft, and Alphabet’s Google, but they managed to turn things around sharply with a vision for AI assistants that actually offered some nice functionality.
Apple has emphasized the security aspects of its iCloud facilities for the purpose of protecting user data. That opens the door to a meaningful boost in Apple’s services revenue, its most profitable business and its fastest-growing.
Services, including sales of music and video and apps, was a fifth of Apple’s total revenue in the fiscal year that ended in September, at $85 billion, a staggering sum considering it was just $14 billion a decade ago… Services’s profit, moreover, is almost twice what it is for iPhones and iPads and Macs, at 75 percent of sales last quarter versus a profit of 37 percent for product sales.
Anything that contributes to services sales should be music to investors’ ears. AI could be a shot in the arm if Apple decides to broadly sell an AI predictions service in the cloud…
It’s conceivable Apple could offer a retail cloud computing AI service, not unlike the services offered by OpenAI, search engine Perplexity.ai, Google, and privately held Anthropic… All those services have coalesced around a price of $20 per month, which is the price for ChatGPT Plus, Perplexity.ai’s Perplexity Pro, Google’s Google One subscription, which includes its Gemini language model, and Anthropic’s Pro account.
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MacDailyNews Take: Apple currently has over a billion paying subscribers and that number continues to grow. As Ray writes in his – recommended – full article, if 10 percent of Apple’s 1+ billion paying subscribers add a privacy-focused “Apple Intelligence+” account, Apple Intelligence becomes a world leader in consumer AI virtually overnight (and its revenue gets another serious boost).
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Apple Intelligence looks like it will become the fastest, best and most secure A.I., in the end.
I call BS on this.
The iPhone is in fact the most advanced surveillance device ever made.
https://rumble.com/v1e7i8k-iphones.-explaining-advanced-surveillance-features.html
Do not need to be the first …only the best…
Apple will be neither.
Samsung troll 👆👹
My worry is that Apple can’t but help but make it woke by controlling its output. Apple wasn’t first to the streaming war but they are far from best. Current Apple TV + has 27 million subscribers and ranked 8th place. Most of the shows seemed promising at first but soon become dull and predictable. Really only severance is a true standout but I’m worried season 2 will be ruined. Remember season 1 was bought by Apple and time will tell how they influence the future of that show. Bottom line. not my opinion, the sad reality, Apple TV+ is a failure and only propped up by Apple’s deep pockets. Can Apple keep their social agenda out of AI ? If Apple is really serious about making the world a better place then maybe they could put start not bending a knee to the CCP.
Apple Intelligence will focus on dealing with your personal stuff on your iPhone or in your iCloud data. They’re outsourcing the most controversial generative AI to OpenAI and then others, which is actually a smart move. They’ll avoid criticism for both political bias and weird AI behavior until they can do their own generative AI years down the road. While I wasn’t blown away, generally speaking Apple is on the right path and they’re navigating this new paradigm much better than Google, Microsoft or Facebook so far. Apple TV+ sucks and it is leftist garbage but that’s only a fraction of their bottom line.