TLDR: Apple’s potential rise in AI by 2024 with Edge AI, in-house silicon, privacy focus, and AI iPhone launch, despite a slow start and unclear AI strategy.
This article is a summary of a You Tube video “The AI dark horse: Why Apple could win the next evolution of the AI arms race” by CNBC Television
Key Takeaways:
- Apple’s Struggling Start: The year started poorly for Apple, with a significant drop in stock value, marking its worst start since 1982.
- Comparative Market Position: Apple fell behind Microsoft in market value and lagged in AI development compared to its ‘Magnificent Seven’ peers like Nvidia, Amazon, Microsoft, and Alphabet (Google).
- Lack of AI Strategy Communication: Apple has been criticized for not clearly communicating its AI strategy, unlike its competitors.
- AI Mentions in Earnings Calls: There’s a noticeable difference in AI mentions during earnings calls, with Apple barely crossing 10 mentions compared to much higher numbers by Amazon, Microsoft, and Google.
- Apple’s Edge in Edge AI: Experts predict that 2024 will be a pivotal year for Apple in Edge AI, which involves processing AI workloads on local devices like phones and computers for faster, personalized, and secure AI interactions.
- Integration of Hardware and Software: Apple’s strength lies in its vertical integration of hardware, software, silicon, and services, positioning it well for delivering AI-enabled devices.
- Advancements in Silicon Design: Apple’s shift to in-house chip design is seen as a game-changer, making its products more powerful and efficient, especially for Edge AI.
- Transition from Training to Inference in AI: Apple focuses on inference – the process of feeding trained models with new data – using its advanced chips for faster and efficient responses.
- Potential Monetization of AI: There’s anticipation of an AI-powered iPhone launch by fall 2024, which could rejuvenate the iPhone replacement cycle and drive revenue growth.
- Privacy-Centric Approach: Apple maintains a cautious strategy in AI, focusing on user privacy and data security, which could be a significant differentiator in consumer trust.
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