Recent Comments

  • Gregg Thurman on Evercore: Apple's AI deal with Google could be a win-win - ' That’s two analysts who like the deal, if true. That’s 2 analysts that don’t understand Apple’s privacy DNA, and its desire to control the entire stack. It’s seductive to think of licensing someone else’s IP because doing so would give you a quick entry into that market (a market that no one truly understands at this time) and wouldn’t cost as much going it alone. But those are the exact reasons I think this rumor is just that: a rumor with no substance. A. Given how long the Vision Pro was in development before its announcement, it’s obvious Apple, while having an urgency to get to market, isn’t driven by that urgency, instead focusing on getting it right. B. Apple has no need to save money. It could simply allocate discretionary spending differently to achieve its long term goals. Industry high revenue coupled with expanding 40%+ gross margins gives Apple that flexibility. A slight dip in Apple’s extraordinary gross margins won’t materially impact AAPL’s valuation. Besides, Apple has been absorbing AI expense for some time. WE may not know where Apple is in its AI development timeline, but Apple management does. Importantly, what we do know is that Apple does not discuss unannounced products, and for good reason. C. Owning the stack enables Apple to create capabilities/integrations its “peers” cannot. That includes patents that prevent the competition from duplicating/copying Apple’s IP. This is just another unsubstantiated rumor that everyone will forget as soon as Apple announces. WWDC? Tim Cook quotes from February 1 conference call: “ They’re why we’re so unflinchingly dedicated to groundbreaking innovation and why we’re so focused on pushing technology to its limits as we work to enrich the lives of our users.” “In terms of generative AI, which, I’d guess, is your focus, we have a lot of work going on internally as I’ve alluded to before. Our MO, if you will, has always been to do work and then talk about work and not to get out in front of ourselves. And so, we’re going to hold that to this as well. But we’ve got some things that we are incredibly excited about that we’ll be talking about later this year”. '
  • John Butt on Evercore: Apple's AI deal with Google could be a win-win - 'I’ve been expecting to have to learn AI for data analysis. I gave up excel years ago when Numbers caught up and was considering going back to get Microsoft’ Pilot but can now see how Apple could create a “Pilot” on Numbers. Siri is not key to me.'
  • Paul Campbell on Apple and Nvidia, BFFs? - '“Apple Vision Pro is the first untethered device which allows for enterprise customers to realize their work without compromise,” Rev Lebaredian, Nvidia vice president of simulation, said in a statement.'
  • Michael Goldfeder on Apple and Nvidia, BFFs? - 'Does this mean that Apple can no longer innovate? Only collaborate? I’m awaiting the headlines by all the haters and trolls to begin with their doom and gloom for Apple after reading this headline as well as the Google AI partnership/agreement. What about modems? The demise of the Apple car? $10 Billion was wasted so now Apple is hobbled and must use partners for everything. Blue bubbles are going away faster than Apple’s growth. Does that about sum it up? If I read another China Syndrome story I’ll invite Khan, Vestager, and Eddie all out to dinner and develop alligator arms when the check arrives to put a smile on my face.'
  • Steven Philips on Evercore: Apple's AI deal with Google could be a win-win - 'I question “Siri in the cloud.” I would think it would be the other way round. With other apps accessing Google etc. AI. The whole point was to have fast and private on device AI so that would be Apple’s focus for its in house AI. How Apple would utilize outside AI is unclear to me but it would have to fit with a privacy focus.'
  • Paul Campbell on Mark Gurman pours cold water on Apple's AI efforts - 'Similar experience here in Phnom Penh. I reported to Apple that Maps had my street name wrong, and they corrected it. Google Maps is still wrong years later.'
  • Paul Campbell on Evercore: Apple's AI deal with Google could be a win-win - '“… and it is unclear what revenue will be generated directly by a potential AI deal…” Google undoubtedly has a revenue plan for its AI, and Apple will have its share of that revenue as it develops.'
  • Paul Campbell on Gene Munster believes Apple now gets it (i.e. AI) - 'I don’t expect anything impact on corporate GM. Management knows how to create the optimal GM while also investing heavily in the future.'
  • David Emery on Mark Gurman pours cold water on Apple's AI efforts - 'Speaking of Apple Maps: The street address they had for our hotel in Valencia was wrong. I filed a report, and a week later got a message “Thank you, we’ve fixed that.” (And it is now correct.)'
  • Bart Yee on Mark Gurman pours cold water on Apple's AI efforts - 'So who exactly is paying whom in this scenario? Is Apple paying Google a licensing fee to use Gemini in any way Apple feels will work? Is Google paying Apple TO USE Gemini in any way Apple feels will work? Could Apple Pay a licensing fee to Google for Gemini while negotiating a similar or even larger additional fee for Google’s default search position on iOS, thereby making it net neutral or even positive for Apple while gaining AI capability NOW? This is assuming Apple reserves the right to continue its own AI development in both hardware and software. Is Apple or Google managing the privacy aspects of any AI used in Apple products?'
  • Robert Paul Leitao on Premarket: Apple is green - 'In Monday trading Adobe Systems finished higher by $21.40 at $513.86. This was a partial recovery from last week’s post earnings selloff. The company ended Thursday trading at $570.45 and Friday trading, following the release of results, at $492.46. Pepsi ( previously mentioned today) ended the day higher by $6.50 or 4.01% at $171.26. The three major indexes ended in the green while Apple closed higher by $1.10 at $173.72.'
  • Joseph Bland on Premarket: Apple is green - 'IMO, this 4 month selloff is your basic malarky. AAPL, if it were fairly valued, would be where MSFT is right now, if not higher. Let’s see: MSFT has a valuation of 37.7. IF AAPL had the same valuation, then given its EPS of $6.44, its valuation would equal (37.7×6.44=) $242.79/share, or 40% higher than it presently is. So Apple, and any in-the-know long term investors, can actually buy AAPL right now at around a 40% discount! Nice!'
  • Joseph Bland on Premarket: Apple is green - 'Apple closed decidedly green, with a selloff “tail” at the end of the open market dropping the final price to $173.72. No real news that I can see drove that late selloff. Volume (for AAPL) was high, at 75 M by 1:18 PM PDT.'
  • Jim Moskun on Ben Thompson: Why Apple would license Google AI - 'I believe that AI will be sustaining (not disruptive) to most companies, including Apple. They have 1B+ customers that will have better products with updates that include AI features. I am sure that they will build models and do research but they are in an ideal position to purchase AI tech as the AI leaders bid for their business (Google, OpenAI & Anthropic).'
  • Bart Yee on Premarket: Apple is green - 'Joseph said: “Apple spiked this AM at $277.58. I think we’ve turned the corner, barring any more black swans.” Oh how I wish this number were true, we’d all be jumping for joy and AAPL would have a $4.25T market cap. Unfortunately, it’s only a typo. Someday, hopefully within a year or two.'
  • Gregg Thurman on Mark Gurman pours cold water on Apple's AI efforts - 'Maps has improved greatly since Apple opened a Map development center in India. It’s called ‘focus’. I think Apple has a vision of how best to fix Siri’s short comings, and licensing someone else’s technology is not part of that vision. That a successful AI solution can (and will) be used in many of Apple’s integrated ecosystem is a given. That being the case, why would Apple license someone else’s technology to make Apple’s extraordinary ecosystem better, only to rip it out when its own solution is ready? This is an unsubstantiated rumor with virtually no business logic to support it.'
  • Gregg Thurman on Mark Gurman pours cold water on Apple's AI efforts - 'Licensing AI technology isn’t the same thing as selling access to Apple’s Safari users. I don’t have immediate access to Apple’s 10Q, but if memory serves correctly Google’s Safari access payments represent a significant degree of Apple’s R&D budget. Licensing AI technology from Google would be a pure expense. Further, licensing AI technology from anybody would not give Apple full control of the stack. It would be an expensive bandaid for a problem that may not exist. Frankly, I think Apple has been developing its own AI technology and doing it for quite some time. We don’t know anything about that work (neither does Gurman and the rest of the rumor community) because Apple doesn’t discuss what it is working on. Better that Apple use that “licensing” budget to develop its own AI technology, technology that would conform to Apple’s long term strategy and give it the control over the stack that Apple holds so dear.'
  • Stephen Hodgson on Ben Thompson: Why Apple would license Google AI - 'Yep – makes sense. Again, Apple can’t be the best at everything and this is one area where Google and Softy certainly should have a big advantage. Better to use what you can from it, especially as it likely will turn into a commodity anyways.'
  • Gregg Thurman on Apple blowback from TikTok? - 'Me too!'
  • Charles A. on Saturday Apple video: Steve Jobs at D2 (2004) - 'FANTASTIC! Will check them out later tonight! '
  • Robert Paul Leitao on Premarket: Apple is green - 'During the noon hour Apple’s advance on the day has moderated. The shares are now up $2.87 at $175.49. Now leading the DJIA is Disney up $2.22 at $114.17, followed by Salesforce and Apple. Entering the leaderboard on the S&P 500 is Pepsi, up $7.21 or 4.38% at $171.87. Morgan Stanley upgraded the stock.'
  • Steven Philips on Apple blowback from TikTok? - 'We don’t want no Chinese companies (or government) spying on American citizens! (We only want good ol’ Murican companies like Google and Meta (and US government) spying on us.) I know there are complexities I can’t possibly weigh (but Congress can’t seem to either!) but my gut tells me a ban is a bad precedent. I hope it fails in the Senate.'
  • Daniel Epstein on Ben Thompson: Why Apple would license Google AI - 'Is this deal any different (if it happens?) to Apple buying modems from Qualcomm? Processors from Intel and before them Apple–IBM–Motorola alliance (Power PC). It took a long time for them to get to design their own chips which are built by TSMC. Yes AI is likely more software as a service than hardware but you get the idea. Apple routinely has partners for manufacturing and assembly for their products. And Apple usually drives a hard bargain with its partners so who benefits most from the relationship is always a question. Since we don’t yet know how this will play out in the Apple AI universe we don’t know whether Apple users will love this arrangement or dislike it. (some of both). I would be shocked if Apple wasn’t talking to other companies to provide this because that is what they do even if they put a unique spin on it. Which I do expect.'
  • Gregg Thurman on Apple blowback from TikTok? - 'PS., When I want to communicate with my friends I pick up my iPhone, iMessage or Apple 3.0. I have no use for the opinions of people I don’t know (who operate without controls).'
  • Gregg Thurman on Apple blowback from TikTok? - 'A trade war between China and the US, involving Apple will be more harmful to China, and China knows it. The Chinese will huff and puff but that’s it. In a trade war China will lose its trade surplus with the US. That will lead to a reduction in employment, something the Chinese economy can’t afford, considering the frailty of its housing market and the banking industry that helped create it.'
  • Gregg Thurman on Ben Thompson: Why Apple would license Google AI - 'Where’s the Beef? No sooner does Apple answer the question “Where is Apple’s headset?”, the rumor mongers change the question to “Where is Apple’s AI service?” No matter the technology, Apple is always behind its peers and in danger of being left behind. The price of cannabis has been going up lately. The Apple rumor mongers are smoking record amounts with this one, matched only by the consumers of those rumors. Of course, the rumor mongers can afford the higher prices, what with the increase in eyeball clicks. The rumor consumers don’t have such revenue and suffer from the higher prices. Thankfully, the rumor consumers, in their smoke filled gaze, see AAPL going to the moon on the weakest of logic, and drive AAPL upwards. I’m tempted to subsidize their smokes.'
  • David Emery on Apple blowback from TikTok? - 'Bffffttttt. TikTok or any alternative app is equally available across iOS/Android platforms.'
  • David Emery on Mark Gurman pours cold water on Apple's AI efforts - 'I’m thinking “Google Maps -> Apple Maps” as a precedent. You can be sure that Apple will make sure that Apple (and not Google) can use the data.'
  • Jerry Doyle on Mark Gurman pours cold water on Apple's AI efforts - 'I concur with Brother Michael G.’s observation regarding Google’s undisclosed payment to become the default search engine on the iOS platform, indicating the emergence of a new burgeoning partnership between these tech giants. The longstanding collaboration between Apple and Google (Alphabet) spans decades, as Michael aptly notes. Furthermore, there is considerable depth to this development, which Apple is poised to elucidate further at WWDC in June. Within Apple’s ecosystem, there exist numerous opportunities to integrate AI functionalities, where Google may offer products suitable for integration. This revelation constitutes merely a fraction of the broader Apple AI narrative. In light of these developments, I interpret this news as a positive indicator, suggesting a sustained upward trajectory in the company’s stock price throughout the year.'