How do we know that that is Apples thesis? Is it not possible they simply are uninterested in massive AI investment? Seems like hardware is their bread and butter.
1) Tim Cook is on the record ascribing that their AI play is the latest act of strategic patience. Your first question strikes at a deeper one though. Are executives just claiming their failures to be proactive ("lazy") as part of the plan all along? This is a question of strategic theory that political scientists, business scholars, historians all debate: does thinking in terms of "grand strategy" actually exist?
2) Let's say their failures have made them pivot into a conscious thesis of being "uninterested." That's because this current massive stage of AI investment requires heavy R&D infrastructure returning little gains for a product commoditizing (foundational models). Apple is as much a hardware company as it is a digital services company: its suite of Apple subscriptions in the past decade have driven almost 50 percent of sales growth over the past decade.
Powering the future of their digital services line will require a major AI play, even if hardware sales remain the underlying "bread and butter" of their sticky ecosystem. They also got jam on that toast.
Some lazy-sourcing below (banking on them being a publicly traded company)
How do we know that that is Apples thesis? Is it not possible they simply are uninterested in massive AI investment? Seems like hardware is their bread and butter.
Thanks for reading!
1) Tim Cook is on the record ascribing that their AI play is the latest act of strategic patience. Your first question strikes at a deeper one though. Are executives just claiming their failures to be proactive ("lazy") as part of the plan all along? This is a question of strategic theory that political scientists, business scholars, historians all debate: does thinking in terms of "grand strategy" actually exist?
2) Let's say their failures have made them pivot into a conscious thesis of being "uninterested." That's because this current massive stage of AI investment requires heavy R&D infrastructure returning little gains for a product commoditizing (foundational models). Apple is as much a hardware company as it is a digital services company: its suite of Apple subscriptions in the past decade have driven almost 50 percent of sales growth over the past decade.
Powering the future of their digital services line will require a major AI play, even if hardware sales remain the underlying "bread and butter" of their sticky ecosystem. They also got jam on that toast.
Some lazy-sourcing below (banking on them being a publicly traded company)
https://www.voronoiapp.com/technology/-Apples-Growth-Engine-Shifts-from-Hardware-to-Services-2969
https://www.trefis.com/data/companies/AAPL/no-login-required/7JGMQ7wT/Breaking-Down-Apple-s-Services-Revenue-
https://www.statista.com/chart/14629/apple-services-revenue/