Apple's Bad News Keeps Coming. Can They Still Turn It Around?
Besides pressure on Apple to make iPhones in the U.S., CEO Tim Cook "is facing off against two U.S. judges, European and worldwide regulators, state and federal lawmakers, and even a creator of the iPhone," writes the Wall Street Journal, "to say nothing of the cast of rivals outrunning Apple in artificial intelligence." Each is a threat to Apple's hefty profit margins, long the company's trademark and the reason investors drove its valuation above $3 trillion before any other company. Shareholders are still Cook's most important constituency. The stock's 25% fall from its peak shows their concern about whether he — or anyone — can navigate the choppy 2025 waters. What can be said for Apple is that the company is patient, and that has often paid off in the past. They also note OpenAI's purchase of Jony Ive's company, with Sam Altman saying internally they hope to make 100 million AI "companion" devices: It is hard to gauge the potential for a brand-new computing device from a company that has never made one. Yet the fact that it is coming from the man who led design of the iPhone and other hit Apple products means it can't be dismissed. Apple sees the threat coming: "You may not need an iPhone 10 years from now, as crazy as that sounds," an Apple executive, Eddy Cue, testified in a court case this month... The company might not need to be first in AI. It didn't make the first music player, smartphone or tablet. It waited, and then conquered each market with the best. A question is whether a strategy that has been successful in devices will work for AI. Thanks to long-time Slashdot reader fjo3 for sharing the article. Read more of this story at Slashdot.
Besides pressure on Apple to make iPhones in the U.S., CEO Tim Cook "is facing off against two U.S. judges, European and worldwide regulators, state and federal lawmakers, and even a creator of the iPhone," writes the Wall Street Journal, "to say nothing of the cast of rivals outrunning Apple in artificial intelligence."
Each is a threat to Apple's hefty profit margins, long the company's trademark and the reason investors drove its valuation above $3 trillion before any other company. Shareholders are still Cook's most important constituency. The stock's 25% fall from its peak shows their concern about whether he — or anyone — can navigate the choppy 2025 waters.
What can be said for Apple is that the company is patient, and that has often paid off in the past.
They also note OpenAI's purchase of Jony Ive's company, with Sam Altman saying internally they hope to make 100 million AI "companion" devices:
It is hard to gauge the potential for a brand-new computing device from a company that has never made one. Yet the fact that it is coming from the man who led design of the iPhone and other hit Apple products means it can't be dismissed. Apple sees the threat coming: "You may not need an iPhone 10 years from now, as crazy as that sounds," an Apple executive, Eddy Cue, testified in a court case this month...
The company might not need to be first in AI. It didn't make the first music player, smartphone or tablet. It waited, and then conquered each market with the best. A question is whether a strategy that has been successful in devices will work for AI.
Thanks to long-time Slashdot reader fjo3 for sharing the article.
Read more of this story at Slashdot.
