1 00:00:00,080 --> 00:00:02,760 Apple's highly anticipated developer conference just 2 00:00:02,760 --> 00:00:04,720 happened and they announced a lot of things. 3 00:00:05,120 --> 00:00:07,640 They, of course went over an entire feature set of different 4 00:00:07,640 --> 00:00:09,880 things they're doing with their operating system and all of 5 00:00:09,880 --> 00:00:12,240 their core apps. They had a lot of third party 6 00:00:12,240 --> 00:00:14,400 developer apps. But the biggest thing, this 7 00:00:14,400 --> 00:00:18,200 time, the most anticipated part, was of course the artificial 8 00:00:18,200 --> 00:00:21,720 intelligence, which in Apple's case they don't call artificial 9 00:00:21,720 --> 00:00:24,800 intelligence, they call it Apple intelligence. 10 00:00:25,120 --> 00:00:27,840 They officially released Apple Intelligence. 11 00:00:28,160 --> 00:00:31,080 We're going to go through in this video and try to unveil the 12 00:00:31,080 --> 00:00:32,800 truth of what this actually means. 13 00:00:32,800 --> 00:00:35,480 What is Apple Intelligence really, and how does it impact 14 00:00:35,480 --> 00:00:38,880 Apple as a company, the customers, and importantly, the 15 00:00:38,880 --> 00:00:41,120 stock? How is Apple Intelligence going 16 00:00:41,120 --> 00:00:43,520 to sell more devices or more services? 17 00:00:43,720 --> 00:00:46,160 How is it going to impact Apple's financials? 18 00:00:46,520 --> 00:00:48,440 We have a lot to get to in this video because we're going to be 19 00:00:48,440 --> 00:00:51,320 going over all of this, and I'll be giving you my take on what 20 00:00:51,320 --> 00:00:54,280 the most important features were of this developer conference. 21 00:00:54,320 --> 00:00:57,000 As we jump into this, I realized first that Apple's doing 22 00:00:57,000 --> 00:00:58,840 something that they've always done in the past. 23 00:00:59,080 --> 00:01:02,480 They like to control their destiny, and part of control is 24 00:01:02,480 --> 00:01:05,360 controlling the branding of what you're doing with your company. 25 00:01:05,640 --> 00:01:09,800 For example, every company out there aside from Apple wants to 26 00:01:09,800 --> 00:01:13,280 jump into the AI race. They want to become an AI 27 00:01:13,280 --> 00:01:15,920 company because right now, AI is good. 28 00:01:16,280 --> 00:01:18,320 AI gets the thumbs up from investors. 29 00:01:18,600 --> 00:01:23,400 So companies like NVIDIA, like Google, like Amazon, Microsoft, 30 00:01:23,440 --> 00:01:25,960 you name it, all of them are AI companies. 31 00:01:25,960 --> 00:01:28,720 And in fact, the more an AI company they can become, the 32 00:01:28,720 --> 00:01:32,360 better the most AI company in the world, which is NVIDIA, is 33 00:01:32,360 --> 00:01:34,720 quickly becoming the biggest company in the world. 34 00:01:35,000 --> 00:01:37,640 So every company has an incentive right now to become an 35 00:01:37,720 --> 00:01:41,040 AI company because again, right now AI is good. 36 00:01:41,480 --> 00:01:43,040 Well, Apple has seen the history. 37 00:01:43,040 --> 00:01:46,160 They know that sometimes terms like AI, which are good right 38 00:01:46,160 --> 00:01:48,800 now, can kind of become bad later. 39 00:01:49,160 --> 00:01:52,000 That can happen over time. Not always the case, but 40 00:01:52,000 --> 00:01:54,920 sometimes it can happen. Think about blockchain and 41 00:01:54,920 --> 00:01:57,080 crypto. Just a couple years ago, that 42 00:01:57,080 --> 00:01:59,480 was like the thing to be Everybody wanted to be a 43 00:01:59,480 --> 00:02:02,880 blockchain company and suddenly the wind shifted and now that's 44 00:02:02,880 --> 00:02:05,560 a bad thing. Apple knows this, so they never 45 00:02:05,560 --> 00:02:08,919 brand themselves a term that they don't control the ultimate 46 00:02:08,919 --> 00:02:12,320 destiny of. So by switching from AI to Apple 47 00:02:12,320 --> 00:02:15,840 Intelligence, they have now branded control over their 48 00:02:15,840 --> 00:02:18,880 artificial intelligence, and now it's a part of Apple that they 49 00:02:18,880 --> 00:02:22,000 have their own control over, not something that other companies 50 00:02:22,000 --> 00:02:23,640 and that the market has control over. 51 00:02:23,680 --> 00:02:26,280 Apple also knows that the ecosystem is the most valuable 52 00:02:26,280 --> 00:02:29,600 part of what they offer, so they've kept everything deeply 53 00:02:29,600 --> 00:02:33,640 integrated into their ecosystem. For example, there's no third 54 00:02:33,640 --> 00:02:38,040 party AI Apple Intelligence app. There's no just ominous third 55 00:02:38,040 --> 00:02:40,600 party app. Everything is built into the 56 00:02:40,600 --> 00:02:43,280 ecosystem, deeply tied with their devices. 57 00:02:43,640 --> 00:02:46,760 So they keep everything in that ecosystem to keep that Moat 58 00:02:46,760 --> 00:02:48,920 together. Now if we go through the 59 00:02:48,920 --> 00:02:53,160 specific features that they went over, they start off first with 60 00:02:53,200 --> 00:02:58,600 the the Apple Vision Pro. And this is just, I think it's a 61 00:02:58,600 --> 00:03:01,680 weak part of Apple right now. I think they're doing a good job 62 00:03:01,760 --> 00:03:03,960 with the headset. I think that they do a good job 63 00:03:03,960 --> 00:03:07,480 with the Vision Pro, but it's just not a great product and I 64 00:03:07,480 --> 00:03:09,240 don't know what else to think about it. 65 00:03:09,320 --> 00:03:11,520 I've never believed in Mark Zuckerberg's metaverse. 66 00:03:11,520 --> 00:03:13,680 I've never believed that people want to sit there with a headset 67 00:03:13,680 --> 00:03:17,880 on for hours and hours and work a full day with a headset over 68 00:03:17,880 --> 00:03:20,800 their face. So I'm just not buying it, both 69 00:03:20,800 --> 00:03:24,080 figuratively and literally. I'm not buying the Vision Pro. 70 00:03:24,240 --> 00:03:26,560 I think it's ultimately a niche product that will appeal to a 71 00:03:26,560 --> 00:03:29,560 small group of people, but I don't see it as popular as the 72 00:03:29,560 --> 00:03:32,800 Watch or the iPhone or the Airpods or anything else. 73 00:03:33,080 --> 00:03:35,000 I think it's going to be a far more niche product. 74 00:03:35,000 --> 00:03:37,320 Now, after talking about the Vision Pro for a minute, Apple 75 00:03:37,320 --> 00:03:40,400 went through a whole list of changes improvement specifically 76 00:03:40,400 --> 00:03:42,160 to the software of their core apps. 77 00:03:42,160 --> 00:03:44,480 So these are a lot of small changes. 78 00:03:44,480 --> 00:03:46,440 I wrote down the ones that I thought were the biggest ones, 79 00:03:46,760 --> 00:03:49,080 things like further personalization and 80 00:03:49,080 --> 00:03:52,000 customization of basically every part of the iPhone. 81 00:03:52,280 --> 00:03:54,800 They had app icons. You could further customize them 82 00:03:54,800 --> 00:03:57,920 and have dark modes and almost like different colour tones. 83 00:03:58,440 --> 00:04:00,000 That was something that was like, meh. 84 00:04:00,160 --> 00:04:03,360 I, I mean, this is, this is stuff Android does, right? 85 00:04:03,360 --> 00:04:06,240 It's not that impressive. And this is a point where I 86 00:04:06,240 --> 00:04:08,480 thought that this was a very weak start to the meeting. 87 00:04:08,480 --> 00:04:11,160 So I, I think that this was just getting things going. 88 00:04:11,480 --> 00:04:14,240 But you had customization of icons, you had a new Control 89 00:04:14,240 --> 00:04:17,800 Center with a new Control Center API, you can do things like 90 00:04:17,800 --> 00:04:21,360 change out the flashlight or the, the camera at the bottom of 91 00:04:21,360 --> 00:04:23,760 the lock screen. Apple's now making it so that 92 00:04:23,760 --> 00:04:27,280 you can hide apps on the iPhone even after the iphone's 93 00:04:27,280 --> 00:04:30,120 unlocked, so you can have an additional layer of security 94 00:04:30,120 --> 00:04:32,280 that even if someone has the iPhone unlocked and they're 95 00:04:32,280 --> 00:04:35,080 using it, they can still not see this app unless it's 96 00:04:35,080 --> 00:04:37,720 specifically unlocked. So this is good for those 97 00:04:37,720 --> 00:04:40,440 situations, I guess, where you have something really personal 98 00:04:40,640 --> 00:04:42,600 like an app that's kind of embarrassing that you want to 99 00:04:42,600 --> 00:04:45,240 keep to yourself and you don't want people to see it even if 100 00:04:45,240 --> 00:04:47,480 they have access to your phone. We've all been in those 101 00:04:47,480 --> 00:04:50,480 situations where you you have a photo, you want to show someone 102 00:04:50,480 --> 00:04:53,240 something interesting and then they want to take the phone to 103 00:04:53,240 --> 00:04:55,440 look at it. That's no fun because then they 104 00:04:55,440 --> 00:04:57,880 have your phone, then they can see your messages, they can see 105 00:04:57,880 --> 00:05:00,000 all the apps on your phone right until they give it back. 106 00:05:00,240 --> 00:05:03,840 So this is kind of a way for Apple to be extra sneaky and 107 00:05:03,840 --> 00:05:07,160 hide apps even after you've unlocked the lock screen. 108 00:05:07,240 --> 00:05:10,200 They also introduced the feature of scheduled imessages. 109 00:05:10,480 --> 00:05:12,840 They give the example of not missing someone's birthday. 110 00:05:12,840 --> 00:05:15,840 You can auto send them an iMessage, which I think is kind 111 00:05:15,840 --> 00:05:17,080 of lame. If it's someone's birthday, you 112 00:05:17,080 --> 00:05:19,640 should probably call them, but there's a lot of other 113 00:05:19,640 --> 00:05:22,240 applications for that. So scheduled imessages I think 114 00:05:22,240 --> 00:05:25,760 is cool, Bold, italic and underline in imessages. 115 00:05:25,760 --> 00:05:27,920 So further customization to sending messages. 116 00:05:28,200 --> 00:05:30,400 You can now add text effects to imessages. 117 00:05:30,560 --> 00:05:33,240 They've also added in the ability to message and text 118 00:05:33,240 --> 00:05:35,840 through satellite, so if you lose reception, you can still 119 00:05:35,840 --> 00:05:38,720 send out messages and text. They've improved Apple's Mail 120 00:05:38,720 --> 00:05:41,480 app, where it's becoming a lot closer to the Gmail app where 121 00:05:41,480 --> 00:05:43,920 you can categorize emails and filter different things. 122 00:05:44,240 --> 00:05:47,560 A lot of people think Apple will never catch up to Google and 123 00:05:47,560 --> 00:05:50,920 Gmail, but remember there was a time when people said that about 124 00:05:50,920 --> 00:05:53,240 Apple Maps. Apple Maps was a complete 125 00:05:53,240 --> 00:05:55,320 disaster. It was ugly, incorrect, 126 00:05:55,520 --> 00:05:58,960 completely inaccurate all the time, and now it's pretty good. 127 00:05:58,960 --> 00:06:01,360 It's right there with with Google Maps. 128 00:06:01,400 --> 00:06:03,120 Apple TV Plus got a few upgrades. 129 00:06:03,120 --> 00:06:06,920 They're basically copying X-ray from Amazon Prime Video, which 130 00:06:06,920 --> 00:06:09,680 is the feature where if you pause at a specific part, it 131 00:06:09,680 --> 00:06:12,520 tells you all the actors on the screen and it tells you what's 132 00:06:12,520 --> 00:06:14,720 going on. Apple's doing the same thing, 133 00:06:14,720 --> 00:06:16,720 but they're calling this insight. 134 00:06:16,920 --> 00:06:20,560 It's literally the same thing as X-ray to Apple is just inside. 135 00:06:20,640 --> 00:06:23,120 The enhanced dialogue is especially helpful in TV shows 136 00:06:23,120 --> 00:06:25,520 or movies where you can't understand what people are 137 00:06:25,520 --> 00:06:27,640 saying. That's so frustrating in some TV 138 00:06:27,640 --> 00:06:30,840 shows, especially with a lot of sound systems people have where 139 00:06:30,840 --> 00:06:33,320 they have the center channel. That's just a big sound bar. 140 00:06:33,440 --> 00:06:36,440 You can't turn up the dialogue independently with those sound 141 00:06:36,440 --> 00:06:38,360 bars. So Apple's trying to make it so 142 00:06:38,360 --> 00:06:40,320 you can understand what people are saying better. 143 00:06:40,800 --> 00:06:43,400 Now they move on to the Watch OS, and this is where I actually 144 00:06:43,400 --> 00:06:45,760 think some of the upgrades here get really impressive. 145 00:06:46,080 --> 00:06:49,480 They have something called the effort rating, which I think is 146 00:06:49,480 --> 00:06:52,160 a direct copy from a product called Whoop. 147 00:06:52,360 --> 00:06:55,400 Whoop is a competitor to the Apple Watch and it tracks 148 00:06:55,400 --> 00:06:58,840 different metrics, like you're sleeping and they have something 149 00:06:58,840 --> 00:07:01,160 called, they have something called your sleep performance 150 00:07:01,160 --> 00:07:03,360 where they rate your sleep. And they have another thing here 151 00:07:03,360 --> 00:07:05,880 called your strain, and it's a measurement, a rating of how 152 00:07:05,880 --> 00:07:07,680 much you strained during a workout. 153 00:07:08,080 --> 00:07:11,000 That sounds awfully familiar to your effort level. 154 00:07:11,080 --> 00:07:13,240 Apple's copying the same features of Whoop and 155 00:07:13,240 --> 00:07:15,000 integrating it into the Apple Watch. 156 00:07:15,080 --> 00:07:17,800 So Apple's doing the same type of thing where they look at what 157 00:07:17,800 --> 00:07:20,720 other various companies have done really well, and they try 158 00:07:20,720 --> 00:07:23,360 to build that into the Apple ecosystem. 159 00:07:23,560 --> 00:07:26,320 And I see them doing that both in health care with things like 160 00:07:26,320 --> 00:07:29,720 blood pressure monitoring, heart rate, and with more active 161 00:07:29,720 --> 00:07:32,000 stuff. Measuring your effort level is a 162 00:07:32,000 --> 00:07:35,440 direct copy of Whoop. Then they moved on to the iPad 163 00:07:35,440 --> 00:07:37,000 and this is where things got interesting. 164 00:07:37,320 --> 00:07:41,200 This is the first area that we saw Apple introduce some real AI 165 00:07:41,200 --> 00:07:43,360 features, some really magical things. 166 00:07:43,680 --> 00:07:46,240 Now started off with some very small things like organizing 167 00:07:46,240 --> 00:07:49,960 your desktop or a small UI change like a floating tab bar. 168 00:07:50,320 --> 00:07:53,600 So nice little UI upgrades, but again, not that impressive. 169 00:07:53,840 --> 00:07:56,480 Where it got interesting was with the calculator app. 170 00:07:56,880 --> 00:07:59,560 Now the calculator app in and of itself, there's a million 171 00:07:59,560 --> 00:08:03,240 calculator apps, but they integrated it into the Notes app 172 00:08:03,560 --> 00:08:06,600 and this was really magical. They showed examples of you 173 00:08:06,600 --> 00:08:10,120 being able to draw out different math problems and after the 174 00:08:10,120 --> 00:08:13,000 equal sign it would automatically put in the answer. 175 00:08:13,400 --> 00:08:17,000 It's like you could be writing out a a complex math equation 176 00:08:17,400 --> 00:08:20,800 and the AI would understand your written language and then auto 177 00:08:20,800 --> 00:08:23,880 fill in the answer after the equal sign and update it as you 178 00:08:23,880 --> 00:08:26,040 make changes. That was the first impressive 179 00:08:26,040 --> 00:08:28,760 example of Apple integrating artificial intelligence into the 180 00:08:28,760 --> 00:08:31,200 ecosystem. It was with the Notes app and 181 00:08:31,200 --> 00:08:34,000 specifically with math. So the Notes app was pretty 182 00:08:34,000 --> 00:08:35,760 cool. But again, up until this point 183 00:08:35,760 --> 00:08:38,799 there is no big AI strategy. This just seemed like a 184 00:08:38,799 --> 00:08:42,000 run-of-the-mill update with a lot of little OS improvements 185 00:08:42,360 --> 00:08:44,960 until we got to this part. They finally did it. 186 00:08:44,960 --> 00:08:48,560 Apple finally introduced themselves into the AI game with 187 00:08:48,600 --> 00:08:51,240 Apple Intelligence. They rebranded it Apple 188 00:08:51,240 --> 00:08:53,720 Intelligence because they control Apple Intelligence. 189 00:08:53,960 --> 00:08:56,200 They don't control artificial intelligence. 190 00:08:56,440 --> 00:08:58,440 The branding's an important aspect of this. 191 00:08:58,800 --> 00:09:01,720 Now, Tim Cook talks about how Apple Intelligence is going to 192 00:09:01,720 --> 00:09:03,240 be centered around 5 different things. 193 00:09:03,600 --> 00:09:07,080 They have powerful, intuitive, integrated, personalized, and 194 00:09:07,080 --> 00:09:09,200 private. The most important one being 195 00:09:09,200 --> 00:09:11,160 private for a couple reasons we'll get to. 196 00:09:11,160 --> 00:09:13,600 Now when I look over all the features of Apple Intelligence, 197 00:09:13,600 --> 00:09:16,560 I list them out and I try to summarize what is Apple 198 00:09:16,560 --> 00:09:18,760 Intelligence like? What does it actually mean? 199 00:09:19,120 --> 00:09:21,920 It's basically an on device large language model. 200 00:09:22,200 --> 00:09:26,560 So it's like having a ChatGPT on your iPhone, but it has specific 201 00:09:26,560 --> 00:09:29,280 training and knowledge that's deeply integrated with all of 202 00:09:29,280 --> 00:09:31,400 your apps. So think of it as like an 203 00:09:31,400 --> 00:09:35,240 assistant that knows a lot about your notes app and photos app 204 00:09:35,240 --> 00:09:37,480 and messenger app. And it can kind of help you out 205 00:09:37,480 --> 00:09:40,160 with any of that. Again, it's like a super 206 00:09:40,160 --> 00:09:43,760 advanced Siri, but it's not quite Siri because the Apple 207 00:09:43,760 --> 00:09:45,720 intelligence goes even beyond Siri. 208 00:09:45,720 --> 00:09:48,280 Apple Intelligence has a lot of the tools we've seen before, 209 00:09:48,280 --> 00:09:51,280 like the writing tools of proofreading, summarizing text. 210 00:09:51,560 --> 00:09:54,920 It'll create generative images for friends, birthdays, and it 211 00:09:54,920 --> 00:09:57,840 will do it in multiple styles. So you have generative images 212 00:09:57,840 --> 00:10:00,760 built into Apple's ecosystem. Now, it also has the power to 213 00:10:00,760 --> 00:10:03,560 translate any type of plain commands to do anything across 214 00:10:03,560 --> 00:10:06,600 the ecosystem. For example, if you say I want 215 00:10:06,600 --> 00:10:10,120 to find a picture of my driver's license, the AI will look at 216 00:10:10,120 --> 00:10:12,560 that and it will search across everything, your notes, your 217 00:10:12,560 --> 00:10:16,240 messages, anywhere for a picture of your driver's license, and it 218 00:10:16,240 --> 00:10:19,760 will recall it if it finds it. So it's a really powerful thing 219 00:10:19,760 --> 00:10:22,880 to have your entire ecosystem and one assistant that helps 220 00:10:22,880 --> 00:10:24,520 with it. Now, after showing a lot of 221 00:10:24,520 --> 00:10:27,600 features of the different AI integrations, they moved on to 222 00:10:27,600 --> 00:10:29,640 privacy. And Apple spends a lot of time 223 00:10:29,640 --> 00:10:31,840 on privacy for two different reasons. 224 00:10:32,080 --> 00:10:35,080 The first one, I believe is a nod to regulators. 225 00:10:35,280 --> 00:10:38,320 They want to get regulators off of their back and they're using 226 00:10:38,320 --> 00:10:41,520 privacy as an excuse to do this. For example, one of the things 227 00:10:41,520 --> 00:10:44,840 that Apple said, and this is a direct quote, privacy is only 228 00:10:44,840 --> 00:10:48,120 possible through our integration of hardware and software. 229 00:10:48,440 --> 00:10:51,760 See what they said? Their privacy is only possible 230 00:10:52,040 --> 00:10:55,320 through our integration of software and hardware, meaning 231 00:10:55,320 --> 00:10:58,840 hay regulators, you can't break up our software and hardware 232 00:10:58,840 --> 00:11:02,040 integration unless you want to sacrifice the privacy of our 233 00:11:02,040 --> 00:11:04,160 customers. So they're kind of linking the 234 00:11:04,160 --> 00:11:08,000 privacy of the customer to the integrated ecosystem of Apple, 235 00:11:08,280 --> 00:11:11,280 therefore protecting their Moat, which is their ecosystem. 236 00:11:11,600 --> 00:11:13,840 If the regulators come for Apple and they want to break 237 00:11:13,840 --> 00:11:16,960 everything apart and separate all the apps, Apple can say 238 00:11:17,320 --> 00:11:20,840 you're exposing our customers to less private ways of doing 239 00:11:20,840 --> 00:11:22,800 business. So I think part of the strategy 240 00:11:22,800 --> 00:11:26,360 here from Apple is linking privacy to the deeply integrated 241 00:11:26,440 --> 00:11:30,520 ecosystem, making it therefore more difficult for regulators to 242 00:11:30,520 --> 00:11:33,240 break up that ecosystem. The next thing, of course, is 243 00:11:33,240 --> 00:11:34,880 just a selling point for customers. 244 00:11:35,200 --> 00:11:38,120 Customers love having their data private, and Apple mentioned 245 00:11:38,120 --> 00:11:42,080 that they have now a private cloud compute by Apple naming 246 00:11:42,080 --> 00:11:45,040 there's private cloud compute. It immediately makes all the 247 00:11:45,040 --> 00:11:48,200 other ones feel less private, like Apple just named there's 248 00:11:48,200 --> 00:11:50,640 private cloud compute. So if you have just a normal 249 00:11:50,640 --> 00:11:53,440 cloud computing business, all of a sudden yours feels like it's 250 00:11:53,440 --> 00:11:55,920 not private because you don't have that little, that little 251 00:11:55,920 --> 00:11:58,760 qualifier in front of it. Apple's private cloud compute is 252 00:11:58,760 --> 00:12:00,680 built to where it doesn't save user data. 253 00:12:00,840 --> 00:12:03,400 Now they continue on with Apple Intelligence, their rebranding 254 00:12:03,400 --> 00:12:07,040 of artificial intelligence with a complete overhaul of Siri. 255 00:12:07,320 --> 00:12:10,360 The Siri icon's different. The Siri animation looks 256 00:12:10,360 --> 00:12:12,680 completely different and no longer fills up the center of 257 00:12:12,680 --> 00:12:15,400 the screen. It maintains conversational 258 00:12:15,400 --> 00:12:16,960 context. So now it's a little bit more 259 00:12:16,960 --> 00:12:19,800 like ChatGPT. You can talk back and forth to 260 00:12:19,800 --> 00:12:22,440 Siri and it will remember what you just previously said. 261 00:12:22,440 --> 00:12:25,880 Siri also has the ability to do things like editing photos. 262 00:12:26,040 --> 00:12:29,520 You can bring up a photo and say, hey, Siri, make it pop, and 263 00:12:29,520 --> 00:12:31,600 Siri will make the photo just look better. 264 00:12:31,800 --> 00:12:34,760 Now every time I look at these new features like photo editing 265 00:12:34,760 --> 00:12:38,680 from Siri, making photos pop right in your iPhone, I look at 266 00:12:38,680 --> 00:12:41,520 Adobe stock price and it didn't react that much. 267 00:12:41,520 --> 00:12:44,240 So investors aren't too concerned, but every time I look 268 00:12:44,240 --> 00:12:47,280 at it, and I think it's not a great thing for Adobe, all these 269 00:12:47,280 --> 00:12:50,680 photo editing tools and AII just believe is more of a negative 270 00:12:50,680 --> 00:12:53,200 for Adobe than a positive. Now there's a lot more generic 271 00:12:53,320 --> 00:12:55,720 AI features, not specifically with Siri, but these are 272 00:12:55,720 --> 00:12:58,400 important features. Ones like notification summaries 273 00:12:58,400 --> 00:13:01,520 where they surface the most important text messages out of a 274 00:13:01,520 --> 00:13:03,560 big stack. The most important one will be 275 00:13:03,560 --> 00:13:06,760 surface to the very top. They also have Gen. 276 00:13:06,760 --> 00:13:08,960 Moji, which is generating emojis. 277 00:13:08,960 --> 00:13:11,680 So you have Gen. Moji now and AI generation 278 00:13:11,720 --> 00:13:14,200 emojis. You have Image Playground where 279 00:13:14,200 --> 00:13:17,280 you can just create new images. So they're taking a little bit 280 00:13:17,280 --> 00:13:20,760 of risk here because we've seen from Google people can abuse 281 00:13:20,760 --> 00:13:23,640 these tools and create really bad images with them. 282 00:13:24,040 --> 00:13:27,040 Apple's probably locked this down pretty good, but they're 283 00:13:27,040 --> 00:13:30,560 still taking some risk here. With image generation, you can 284 00:13:30,560 --> 00:13:32,560 generate the images you want, and then you have something 285 00:13:32,560 --> 00:13:36,000 called Image Wand, which improves sketches in real time. 286 00:13:36,360 --> 00:13:39,400 So like, if you Draw Something in the Notes app and you circle 287 00:13:39,400 --> 00:13:42,440 it, the image wand will make it better and more real. 288 00:13:42,480 --> 00:13:44,760 And then Apple's photo app's getting a huge upgrade where it 289 00:13:44,760 --> 00:13:47,360 will take a lot of various photos and videos from a 290 00:13:47,360 --> 00:13:50,760 vacation or a trip, and it will automatically create a photo 291 00:13:50,760 --> 00:13:53,280 book from it with music. And it's getting better at 292 00:13:53,280 --> 00:13:56,560 making these better and better. So that's another cool thing 293 00:13:56,560 --> 00:13:58,680 that's built into it. But Apple's doing what I 294 00:13:58,680 --> 00:14:00,480 expected. They're integrating all of these 295 00:14:00,480 --> 00:14:02,640 features closely into their ecosystem. 296 00:14:03,120 --> 00:14:05,880 Now finally, and I think surprisingly, after going 297 00:14:05,880 --> 00:14:09,280 through all the Siri upgrades, they also mention that they're 298 00:14:09,280 --> 00:14:13,200 integrating Chat GT with IRI, but not in the way that you may 299 00:14:13,200 --> 00:14:15,440 think. It's not like IRI's suddenly 300 00:14:15,440 --> 00:14:19,080 becoming Chat GT. Rather, what they're doing is 301 00:14:19,080 --> 00:14:22,080 IRI can hand off a question to Chat GT. 302 00:14:22,560 --> 00:14:24,360 So it's a little bit more of a transition. 303 00:14:24,360 --> 00:14:28,640 They hand you off to ChatGPT rather than it becoming ChatGPT. 304 00:14:28,800 --> 00:14:31,200 And they mentioned that they're open to having other integrated 305 00:14:31,200 --> 00:14:33,440 LLM's. So you have all of these Apple 306 00:14:33,440 --> 00:14:36,200 Intelligence features, the things like the Gen. 307 00:14:36,200 --> 00:14:40,240 Moji, the advanced Siri, the photo book creation tool, All of 308 00:14:40,240 --> 00:14:42,680 this stuff is Apple Intelligence. 309 00:14:42,680 --> 00:14:45,960 They're AI rebranding. It's important to note that this 310 00:14:45,960 --> 00:14:50,320 stuff is only available for the iPhone 15 Plus or later, meaning 311 00:14:50,320 --> 00:14:53,840 that you had to have the latest Apple iPhone to have access to 312 00:14:53,840 --> 00:14:56,600 any of these features. Everyone else won't have them, 313 00:14:56,840 --> 00:14:59,160 but they gave some users the latest features. 314 00:14:59,640 --> 00:15:01,920 The thing I think they're doing here is creating a strong 315 00:15:01,920 --> 00:15:05,240 incentive to upgrade from the previous iPhones to the newer 316 00:15:05,240 --> 00:15:08,240 ones. Now, a lot of people that buy 317 00:15:08,240 --> 00:15:10,840 iPhones are not watching this developer conference. 318 00:15:10,880 --> 00:15:14,240 In fact, I'd say 99% of people that buy iPhones are not 319 00:15:14,240 --> 00:15:15,680 watching this developer conference. 320 00:15:16,040 --> 00:15:19,000 So it's not like they're sitting here looking at the new features 321 00:15:19,000 --> 00:15:20,920 and trying to be sold on the iPhone. 322 00:15:21,200 --> 00:15:23,240 That's not how Apple sells iPhones. 323 00:15:23,600 --> 00:15:25,760 The way that they're going to get people to upgrade to the 324 00:15:25,760 --> 00:15:29,040 latest version of the iPhone is by people who already have the 325 00:15:29,040 --> 00:15:31,480 latest version of the iPhone using these features. 326 00:15:31,800 --> 00:15:35,400 Once other users see them using these features, that's when it 327 00:15:35,400 --> 00:15:37,320 creates FOMO. That's when it creates people 328 00:15:37,320 --> 00:15:40,560 wanting the latest. When your iPhone can send Gen. 329 00:15:40,560 --> 00:15:44,360 emojis and different scheduled text messages and has advanced 330 00:15:44,360 --> 00:15:47,400 Siri and someone else is looking at that and their iPhone doesn't 331 00:15:47,400 --> 00:15:51,280 have it creates a little bit of jealousy, creates a little FOMO 332 00:15:51,280 --> 00:15:53,120 inside of you. Even if you're reluctant to do 333 00:15:53,120 --> 00:15:56,200 it at first, if more and more people are using all these cool 334 00:15:56,200 --> 00:15:58,840 features and you don't have access to them, you're going to 335 00:15:58,840 --> 00:16:02,080 feel left out. So Apple is creating a strong 336 00:16:02,080 --> 00:16:05,280 incentive with Apple Intelligence to upgrade your 337 00:16:05,280 --> 00:16:06,800 phones. And I think that's one of the 338 00:16:06,800 --> 00:16:10,160 biggest thing they did here. They created a further incentive 339 00:16:10,240 --> 00:16:12,880 for a new iPhone cycle. Now, it's difficult to say how 340 00:16:12,880 --> 00:16:15,520 many people really upgrade because of Apple Intelligence. 341 00:16:15,760 --> 00:16:18,960 You may scoff at it and say it's not that impressive, but all it 342 00:16:18,960 --> 00:16:22,040 takes is one good feature for someone to upgrade, just 343 00:16:22,040 --> 00:16:24,480 something to justify upgrading their phone. 344 00:16:24,800 --> 00:16:26,920 If your phone's already a few years old and you've been 345 00:16:26,920 --> 00:16:29,800 looking for an excuse to upgrade, Apple just gave you 346 00:16:29,800 --> 00:16:32,200 that excuse. So I'll admit Apple didn't do 347 00:16:32,200 --> 00:16:34,400 anything revolutionary, anything cutting edge. 348 00:16:34,400 --> 00:16:36,920 They didn't invent anything new, but they don't need to. 349 00:16:37,200 --> 00:16:39,920 They already own the market. All they have to do is create an 350 00:16:39,920 --> 00:16:43,680 incentive for people to upgrade, and they gave many motives for 351 00:16:43,680 --> 00:16:46,400 people to upgrade. A lot of people underestimate 352 00:16:46,400 --> 00:16:49,640 the power of a little fun feature in the iPhone. 353 00:16:49,920 --> 00:16:52,400 All it takes is one of those to encourage people to upgrade if 354 00:16:52,400 --> 00:16:54,880 they see something they really want, some feature. 355 00:16:55,040 --> 00:16:57,480 There's a lot of social pressure with the iPhone. 356 00:16:57,800 --> 00:17:00,640 Apple understands this and they are encouraging people and 357 00:17:00,640 --> 00:17:03,120 motivating people to upgrade their iPhone to get Apple 358 00:17:03,120 --> 00:17:05,640 Intelligence. Now, of course, the stock is 359 00:17:05,640 --> 00:17:08,960 down a little bit after this meeting, it's down 2%. 360 00:17:09,599 --> 00:17:11,960 This is nothing new. I've been following Apple for 361 00:17:11,960 --> 00:17:14,520 years and years and years, and it's difficult for me to 362 00:17:14,520 --> 00:17:17,839 remember a time that Apple has had a developer conference where 363 00:17:17,839 --> 00:17:20,040 the stock price went up during the conference. 364 00:17:20,400 --> 00:17:24,240 It almost never happens. Apple always trades down during 365 00:17:24,240 --> 00:17:27,240 developer conferences, but the stock price usually recovers 366 00:17:27,240 --> 00:17:28,400 within the following three months. 367 00:17:28,400 --> 00:17:31,960 So I see nothing unusual here. So overall, my biggest take away 368 00:17:31,960 --> 00:17:35,440 is that Apple is leaning into privacy once again and they're 369 00:17:35,440 --> 00:17:39,200 using privacy as a shield, an excuse to protect their 370 00:17:39,240 --> 00:17:41,480 ecosystem. And I think that's a pretty good 371 00:17:41,480 --> 00:17:44,000 excuse. They can further protect their 372 00:17:44,000 --> 00:17:47,280 users data with a close integration of software and 373 00:17:47,280 --> 00:17:49,080 hardware. If the government comes in and 374 00:17:49,080 --> 00:17:52,360 tries to break that up, it gives them more of an excuse to keep 375 00:17:52,360 --> 00:17:54,440 it together. So I think that's a protection 376 00:17:54,440 --> 00:17:56,720 against regulation. And then the next thing they're 377 00:17:56,720 --> 00:17:59,760 doing is creating a strong motive to upgrade, which I think 378 00:17:59,760 --> 00:18:02,200 they've done successfully. I think there's enough little 379 00:18:02,200 --> 00:18:05,120 Easter eggs here, enough little cool features to encourage 380 00:18:05,120 --> 00:18:08,320 people to upgrade their iPhone. So overall, even though the 381 00:18:08,320 --> 00:18:11,600 stock is trading down, I view this as a positive development 382 00:18:11,600 --> 00:18:14,000 with Apple. I think that this met what they 383 00:18:14,000 --> 00:18:17,200 needed to meet and I think it also was executed really well. 384 00:18:17,520 --> 00:18:19,080 So I'm excited about this development. 385 00:18:19,080 --> 00:18:21,080 Let me know what you think. See you in the next one.