Gregg Thurman on Mark Gurman: Forget AI, Apple's core strength is hardware - 'Smart. In one article Gurman gets to argue both sides of a question. So, no matter which way the wind blows (ignoring the argument that was wrong) he can claim he was right. But he’s wrong, massively wrong on both sides. All software runs on hardware. The better the hardware the better the software runs. Nobody makes better hardware than Apple. Not even Nvidia. Apple designs and develops software to run on its proprietary hardware. It’s most popular hardware is mobile: laptops, cellphones, tablets, watches. In each of those categories Apple has integrated SOME AI functionality (appropriate to the device) into their respective OSs. The continuity of processor and OS core enables Apple to easily customize software to fit each device’s core jobs to do. All other AI developer’s products require massive data centers (hardware). Apple can monetize its AI “solutions” by selling AI enhanced hardware running Apple standard AI enhanced features. The competition is crippled by virtue of the fact that it can’t sell the data centers. Ergo, they can only retrieve the massive amounts spent on their data centers by renting the AI “solutions” (aka “agents”) that runs on them. How many “agents” is the average user going to need to benefit from data center powered AI? How will those costs compare to the built in AI functionality of Apple Intelligence? Let’s see, at a subscription rate of $20/month and a 4 year iPhone upgrade cycle, the user will pay $960 for functionality that most likely comes standard on the iPhone. Consider also that the only users that may subscribe to data center powered AI”agents” are those with a specific need for that “agent”, whereas Apple users, whether they have a need for AI “agents”, or not, pay for them because they are built into all Apple AI enabled software products, running on Apple AI enabled hardware. How many Android users will look at that monetization model and decide Apple.’s solution is not only better, but less expensive? Also remember that data centers will be upgraded about every 3-4 years. Gee, that’s essentially the same cycle of Apple hardware upgrades (on average). Apple gets 100% participation from a growing base of >1.8 billion users, while the (Windows/Android) competition must compete for those that need AI functionality and are willing to pay extra for it. Game, Set, Match.'
on The Verge: In antitrust, Apple is the new Microsoft - 'I call 95% bullshit. And I’m tired of the commission argument. Without Apple you’d have no market. Google, Sony, Microsoft, etc. do the same thing.'
on Mark Gurman: Forget AI, Apple's core strength is hardware - '🙂 Yup! My exact thought. I do think we need more time to see how all these AI strategies play out. (And pay out!) Agree with PED take, too.'
on Mark Gurman: Forget AI, Apple's core strength is hardware - 'Compare and contrast these two sections, and marvel at the inclusion of both of them in the same piece written by one individual: “The opportunity to turn Apple Intelligence into a moneymaker has effectively passed.” v. “A cornerstone of [Apple’s] strategy is the upcoming iOS 27 Extensions feature, which will let users install third-party AI chatbots beyond ChatGPT and run them inside Siri. This feature will have its own dedicated App Store section, effectively creating an AI App Store. It will be a marketplace of sorts for third-party AI integrations. . . . Apple can maintain sales of the iPhone and other devices while also generating revenue from AI-driven apps, via the App Store’s 30% commission.” Reading Gurman makes me so very tired.'
on Saturday Apple video: Steve Jobs introduces iMac (1998) - 'I’m curious, Gregg. What did your company do?'
on Marques Brownlee: Apple's new laptops are putting Microsoft on notice - 'FYI, every Mac laptop has a headphone jack.'
on In the big tech free-fall this week, Apple stood out - 'For many years now I have heard bear analysts argue that the iPhone, although made by a technical company, will soon become a commodity, and thus deserves a lower PE ratio.'
on Marques Brownlee: Apple's new laptops are putting Microsoft on notice - 'The best that he can say about the Microsoft OS is that it is “functional.” It’s easy to imagine how the Neo price point could overcome the emotional “sunk cost” of users who’ve put up with PCs for years–along with the irritating raves from friends about their Macs–that the dike will at long last burst.'
on Steven Levy: Apple is allergic to nostalgia - 'My favorite line: “That of course presumes that superintelligence doesn’t totally rearrange reality in the next 50 years, let alone the next millennium.”'
on Steven Levy: Apple is allergic to nostalgia - 'I completely agree with two points in this article: 1. It’s critically important that Apple leadership not be sentimental or nostalgic about its past and past products, and continue to focus on constant improvement and tracking, chasing, and pushing mid- and long-term tech revolutions and replacement; and 2. Sam Altman can definitely be replaced with an AI, mainly because the quality of his vision, decision-making, leadership, and approach to business is similar in the quality of flaws and deception inherent to the output of OpenAI’s LLM. The human factor will always be a critical necessity, when it comes to leading and overseeing any organization that it attempting to do truly significant things.'
on In the big tech free-fall this week, Apple stood out - 'CAPEX: Great in boom times. Not good in down turns. Apple wins. META created their own special hell with a business that relies on exploiting the users. AAPL, at 29 Forward PE, looks attractive. Caveat: The war and Apple entering it’s quiet period, work against the stock near term.'
on Wedbush's Street-high $350 Apple target is nearly $100 above the share price - 'Imagine for a minute the Trump economy if it weren’t for the AI trade. We would have been in recession 6 months ago. Or imagine how the economy would have hummed along if it weren’t for the tariff war (consumer tax) and now a new forever war stoking inflation. Btw- read a good analysis recently that there are finite resources to rebuild oil and gas infrastructure, and that you reach a tipping point where new damage grows repair time exponentially (months to years). We are on that precipice now.'
