I think what the question for me in many ways is why the market is loving it so much. When initially we thought there's no wow factor here. Hi, Caroline. Thanks for having me. You know, you're so right, because I've been, like, absorbing all this information, as I'm sure everyone else here. I think what was really big is, you know, yesterday there might have been a lackluster response because, like you said, there wasn't any brand new feature or use case that we haven't seen yet. Right. From the other platforms or the other players in the market. But what to me really stood out and I think what's catching on, you know, the wave here is this is a big, big move. It's a bold step forward for Apple. They yes, sure, they were, you know, behind the curve a little bit. But I think the way they've come out right now, they've told, you know what Apple does best, Right?

They've told a really compelling consumer story. Most consumers aren't really aware about, you know, what's generated and what it can do. What I think Apple did that, you know, was I guess genius on their part is the way the integrated it into the user experience, which is of course central to Apple's you know, history and how it's always been about the user experience and it's about how bringing an eye on device with with everything that we do right in everyday apps that we have without having to go somewhere click on a different approach not what is just everything is integrated. And then of course, there's strong message on, you know, if you do it with Apple intelligence, it's going to be private and secure. But that privacy and security issue. Do you think that that's in any way going to be questioned by what Musk is currently saying? Do you think it might put off people going for the iPhone 60? You know, you know, Elon Musk will be

Elon Musk, right.
Like you just said in the earlier segment, that there's definitely going
to be a lot of talk that it's going to be around this.
But I think Apple's messaging was clear, right, that if you using AI the way they
have shown this and everything that they've shown yesterday was it's going
to give you a personalized, customized experience.
It's going to keep most of the things on device.
It's only when you because that's where they're not using.
I think there's a lot of confusion and I was looking into this myself earlier
this morning. We have our team on ground at Apple Park
to verify, you know, what is it the models that are being used in all of
Apple intelligence and all the features that we saw.
Right. What the different with those gen
models, whether it's their summarization, transcription, search,
everything that's on device, it's based on Apple's own A.I.
models.

It's only the GBG and Openai comes in,
when you're trying to prompt Siri for a question that's you can't use the
information that's on your device to answer or Apple's only AI model, and
that's the opt-in feature, which you're going to give your user or Siri access
to or, you know, give you permission to access chat.
So I think the way they have messaged it is pretty clear that everything that you
do on the Apple device will be secure. And even when Apple or the device can't
use its own, you know, on-device aim, it's going to use Apple's secure cloud
to, you know, personalized fast to be able to run those more complicated A.I.
models. But I think it was it was very is
segmented in a different way that only you know use during Siri prompts.
And what's interesting is this is a global company with a lot of focus on
China.

And I'm interested as to longer term. We know that they're going to perhaps be more agnostic about which large language model they use, adopt, or indeed build their own. But can they go live in China? Will it stimulate demand in China? So the key, you know, again, like we were talking to our China team this morning because Chad, Djibouti isn't available in China right now with this iteration. You know, it's not going to benefit the upgrade cycle in China with the device this year. However, the fact that Apple's in Asia, the fact that Apple is doing these things, it's going to benefit the consumer perception, which was taking a negative turn, especially in China, because consumers are, you know, placing AI as a driving factor in their devices in terms of purchasing. So I think this year, the upgrade cycle will probably be more impacted because, as they said, it's going to be

available in the fall and only supported
the English language. So countries like U.S., U.K.,
or any consumers that are primarily English driven, it's going to drive
because there's plenty of, you know, users out there with iPhone 11 and
iPhone 12, because the average refresh cycle, we're still looking at about 3 to
4 years. So, you know, those users that will want
these new devices, even if it's just English support, you know, I'm an
English-speaking user.

Apple Unveils ‘AI for the Rest of Us’ Plan

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