Apple’s AI Moment Is Coming. It May Not Be Smooth.
Last week, Tim Cook indicated Apple would introduce an AI product “later this year,” and analysts celebrated. Deepwater Asset Management’s Gene Munster said Cook uttered “the magic letters for the first time,” adding “I’d officially welcome Apple to the generative AI freight train.” Even after mixed earnings and light guidance, Apple’s stock price has jumped 5% since.
But Apple’s generative AI rollout may be more complicated than flipping a switch and enjoying NVIDIA-like prosperity. The company will have incumbency tradeoffs to consider, including how much to change iOS to make room for AI. And its culture isn’t built to develop sweeping AI products, as evidenced by its failures with the Homepod.
Last week, Tim Cook indicated Apple would introduce an AI product “later this year,” and analysts celebrated. Deepwater Asset Management’s Gene Munster said Cook uttered “the magic letters for the first time,” adding “I’d officially welcome Apple to the generative AI freight train.” Even after mixed earnings and light guidance, Apple’s stock price has jumped 5% since.
But Apple’s generative AI rollout may be more complicated than flipping a switch and enjoying NVIDIA-like prosperity. The company will have incumbency tradeoffs to consider, including how much to change iOS to make room for AI. And its culture isn’t built to develop sweeping AI products, as evidenced by its failures with the Homepod.
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