Here's how Apple's AI story will play out in 2024
TLDRIn the transcript, Gene Munster from Deep Water Asset Management discusses Apple's potential in the AI sector. He predicts that Apple won't introduce a foundation model to compete with existing AI platforms but will instead build upon open-source models to enhance Siri and create personalized AI experiences. Munster sees this as a significant opportunity for Apple's multiple expansion, speculating that they may develop their own foundation model in the long term. He also suggests that Apple could introduce new subscription services or ad-ons and leverage generative AI in commerce, while initially focusing on providing developers with access to AI features.
Takeaways
- 🚀 Apple is expected to make significant moves in the AI sector in 2024, potentially impacting stock prices.
- 💡 Tim Cook's recent statements indicate Apple is investing heavily and responsibly in AI, despite previous quietness on the topic.
- 🌐 Apple is not anticipated to develop a foundation model to compete directly with AI models like ChatGPT or Claude from Anthropic.
- 🛠️ Apple may focus on enhancing and personalizing their existing AI services, such as Siri, using open-source models.
- 📈 The potential for multiple expansion in Apple's stock value is suggested, as the market has not yet priced in AI advancements.
- 🔮 A long-term prediction sees Apple developing their own foundation model in 3-5 years, leveraging third-party resources initially.
- 💼 Apple's financial capacity and computing power position them well to invest in and develop AI technologies.
- 🔧 The business model may involve providing developers access to generative AI tools, charging them for this service.
- 🛒 Apple sees an opportunity to integrate generative AI into commerce, possibly offering new subscription services.
- 🌟 Apple's historical success in product feature enhancement could drive further growth in the AI space.
Q & A
What is the current state of AI at Apple according to Gene Munster?
-Apple has been relatively quiet on the topic of AI, but Tim Cook has mentioned that the company is investing quite a bit and responsibly in this area. Apple's stock has not been significantly impacted by AI advancements yet, suggesting that any news on this front could potentially drive the stock higher in the future.
What was Tim Cook's statement regarding AI during the earnings call?
-Tim Cook emphasized that AI is a fundamental technology for Apple and confirmed that the company is investing in generative AI.
What is Gene Munster's prediction about Apple's approach to AI in comparison to other tech companies?
-Gene Munster believes that Apple is not going to introduce a foundation model to compete with AI models like ChatGPT or Claude from Anthropic, as they are too far behind. Instead, he suspects that Apple will build on top of an open-source model to enhance Siri and create a personalized AI experience.
How does Gene Munster foresee Apple integrating AI into its product ecosystem?
-Munster envisions Apple leveraging AI to improve Siri and offering personalized AI experiences. He also suggests that Apple will allow developers access to AI features, potentially charging them for this access, and that AI could play a role in expanding Apple's services.
What is the potential impact of AI on Apple's stock according to the discussion?
-The discussion suggests that since Apple's stock has not yet reacted to AI advancements, there is a significant opportunity for multiple expansion when more details about Apple's AI strategy are revealed, especially if they can demonstrate a competitive edge in personalized AI.
How does Gene Munster view Apple's strategy in the context of generative AI and commerce?
-Munster believes that as generative AI starts to encompass commerce, Apple has an opportunity to integrate AI into its commerce offerings, similar to what Google is doing, and this could be a significant growth area for the company.
What is the expected timeline for Apple to develop its own foundation model?
-Gene Munster predicts that it may take three to five years for Apple to develop its own foundation model, as it requires substantial time and energy. Until then, he believes Apple will leverage third-party models.
How does Apple's financial capacity influence its potential in AI development?
-Apple's financial strength is a key advantage in AI development, as it has the resources to invest in the significant computing power required for such technologies. This gives Apple a competitive edge over companies with fewer resources.
What are the potential new revenue streams for Apple with the integration of AI?
-The integration of AI could lead to new subscription services or add-on features where Apple could charge users more. Additionally, it could enhance Apple's existing services and products, driving further growth.
How does Gene Munster view the role of developers in Apple's AI strategy?
-Munster sees developers as a crucial part of Apple's AI strategy. He suggests that Apple will allow developers to leverage access to AI features, which could lead to new services and product enhancements, ultimately benefiting Apple's service growth.
What is the significance of AI in Apple's product development according to the discussion?
-The discussion highlights that AI will play a significant role in Apple's product development, particularly in enhancing existing features and creating new, personalized experiences for users. This could drive customer satisfaction and retention, as well as attract new users to Apple's ecosystem.
Outlines
🚀 Apple's AI Vision and Stock Performance in 2024
The paragraph discusses the potential for Apple's stock to increase in 2024 due to advancements in AI, specifically focusing on the company's strategy and investment in the field. It highlights a quote from Tim Cook, emphasizing that while Apple has been quiet about AI, they are investing significantly and responsibly. The expectation is that Apple will reveal more about their AI initiatives, potentially focusing on enhancing Siri and personalized AI experiences. The discussion also touches on the possibility of Apple introducing new subscription services or add-ons related to their AI advancements. The speaker predicts that Apple will initially build upon open-source models before developing their own foundation model in the long term, leveraging third-party resources for several years. The potential for Apple to incorporate generative AI into commerce and improve their product features is also mentioned, suggesting that investors should be optimistic about Apple's future in AI.
Mindmap
Keywords
💡AI
💡Vision Pro
💡Gene Munster
💡Tim Cook
💡Foundation Model
💡Open Source
💡Siri
💡Multiple Expansion
💡Third Party
💡Commerce
💡Services Growth
Highlights
RALLY WILL CONTINUE AND AI AND, THE VISION PRO WILL SEND THE, STOCK HIGHER IN 2024.
GENE MUNSTER, PARTNER AT DEEP WATER ASSET, MANAGEMENT, shares insights on the AI story at Apple.
Apple has been quiet on the topic of AI but is investing quite a bit, responsibly.
Apple's AI efforts have not yet caused a rise in stock prices, indicating a potential for growth.
Expectations for Apple to reveal more about their AI initiatives in 2024.
Apple is unlikely to introduce a foundation model to compete with ChatGPT or Claude from Anthropic due to being too far behind.
Apple may build on top of an open-source model to enhance Siri and create personalized AI.
Apple's AI strategy could lead to multiple expansion and a rise in stock prices.
Apple's long-term plan may include developing their own foundation model in three to five years.
Apple has the financial capacity to invest in AI due to their resources and computing power.
Apple may offer new subscription services or ad-ons related to generative AI.
Developers could be given access to generative AI features, potentially leading to new services and revenue streams.
Apple's opportunity in search and commerce within the context of generative AI.
Apple's time-tested strategy of building better product features could drive further success in the AI space.
Investors should look forward to more developments in AI from Apple.
Apple's potential to leverage third-party AI models for several years.
The business model for Apple's AI initiatives may involve charging developers for access to AI features.