Apple Review…I Loved Everything
Tim Cook and Apple are so freaking good.
I feel like they had both lost a bit of their luster, and I feel like the market was going through that cycle they so often go through, where some new technology comes out, Apple isn’t the first on the scene, price slips, and then Apple shows up to improve and monetize the new technology. AI was the new technology, and now, it looks like Apple is about to take both Google's and Microsoft’s (but mostly Google’s) lunch on AI. In this column, we will talk about Google+big tech vs. Apple, monetization of the new Apple Intelligence, and finally, where this stock will go.
Apple partnering with OpenAI is a great move, and the way they designed the deal is nice. Apple Intelligence is its own service. Apple Intelligence is run by Apple and is completely private. OpenAI is outside of that ecosystem. In two, five, ten years, other AI companies will bid to be the OpenAI for Apple. Instead of just porting OpenAI onto their iPhones, and deeply integrating, Apple is in control of their own AI with OpenAI on the side. Beyond the inevitable bidding war, there is also the effect these improvements will have on iPhone sales. Recently, Apple’s iPhone reputation has been poor. The recent iPhones have been pretty stale, and there has been a lack of innovation, but all the new Apple Intelligence updates they are rolling out onto iPhones, I believe, will jumpstart an already solid market. Stuff like Siri improvements, UI touchups, and a service that lets you write any math problem in the Notes app and have Apple Intelligence solve it. Beyond the iPhone, Apple brought calculator to the iPad, rolled out a new Mac update, and seriously improved their Apple Watches, mimicking many of the features of the Whoop, an Apple Watch competitor. They also updated the Vision Pro, but that is still a few years away from a few years away.
Apple is such a great big tech company in the eyes of people. I feel like most behemoth tech companies like Amazon, Google, and Meta really struggle to not seem like evil corporations because, in Google and Meta’s case, they make money off selling as much data as possible, which is inherently opposed to consumer interests. Amazon just seems to be a corporation looking to always screw over their employees. But Apple has a great reputation in terms of a positive work culture, and if you talk to anyone, they will tell you that the culture of Apple is one of positivity and ingenuity, as opposed to Google where people seem to want to harvest as much money before they retire and seem to possess little interest in innovation beyond the top brass. Also, Apple’s focus on privacy is such a PR win. All of that “We believe privacy is a human right” is both a great thing to hear as a consumer and as an investor. My point is this, Apple avoids the negative light most tech companies find themselves in as well as fostering an excellent working environment and a privacy-focused culture that is in line with consumer feelings and opposed to the majority of tech firms. These traits make Apple both feel good to invest in and a sound investment, as they typically avoid the ire of the people and governments.
Hold the stock. Do not buy off this optimism, unless you feel super confident. This stock is going to continue to go up because their leadership is impeccable, and they have positioned themselves so well, but you do not need to pounce immediately if you have not already bought.
It is hard to understate how great this conference was. You may look at the list of new things and the 12% increase that followed their announcement and feels like the stock pop is overblown, but I am telling you that Apple brought major improvements that will be lucrative in the short-term, as well as money-making moves that will reap rewards a year or two from now. Tim Cook, you are so GOATed.
