When we've discussed some third-party data, it's usually been negative. And then Apple, with actual data in the earnings context, has proven it wrong. This is counterpoint research data. That is a surprise, and it's a positive surprise. What does it tell us about iPhone six in that market? Barely think it tells us anything new. I think it tells us that the first three weeks of iPhone sales, as they usually are, were pretty hot. Right. The issue was never the opening month of the device. The issue was over the long term. Right. Three, six, nine months to 12 months or the full cycle of that device. I think some analysts have been a little irrational or irresponsible in their commentary on the iPhone 16 over the last several months. Some analysts have gone as far as claiming that this is going to create a supercycle, something we haven't seen since the iPhone first launched on China.

mobile with bigger screens a decade ago. Right. They've been saying that Apple intelligence is something that is going to drive a supercycle, despite the fact that Apple intelligence is not available in China. Right. So you can't necessarily have it both ways. You can't say that it's going to create a supercycle in China. Well, A.I. is not available in China, right? I'm not entirely surprised. The iPhone 16 is doing well in the region. There's a lot of pent-up demand. There's a lot of people in China who didn't upgrade prior two years, the iPhone 14 Pro and the iPhone 15 Pro. The iPhone 16 has some nice improvements, right? I think the camera control interface is excellent. Right. I think the speed improvements in the battery life improvements are really nice touches. I've enjoyed those personally. So I think it's a good upgrade for people who haven't bought a new iPhone.

in the past few years. So I'm not entirely surprised. And typically, even when the data is negative, right, I typically come on here and say, We're not going to know the truth until Apple earnings, right. That's the case even when it's positive. And so, at the end of this month, we'll get a better idea of how accurate this information is. Mark, next time we are bringing you and Dan, I've supercycle man on together for some fighting talk. We love it today, but more broadly, what do you think that there is not bits to love with an iPhone six. The bit that I'm just so questioning is the key element. You've told this story again and again on your own X platform in particular. Why? Who are they going to partner with in China? How are they going to really reap the benefits of the artificial intelligence? Yeah. So there's two components really to the API push in the iPhone, right? There's the in-house large language

models and generative A.I. features. Those are using an Apple model. Those are running on Apple servers. And then there's the third-party component that's integrated into Siri and other parts of the operating system in the U.S. They're using so far chat shipped starting in December, and they're also planning to integrate Google Gemini and to open it up to other LMS in the future. So you have an array of choices in China. Most of those providers in the U.S. are not available, so they're going to have to partner with local entities. Baidu being one option. Obviously, you have Tencent, obviously you have different bespoke labs in the region. But the other component is how is Apple going to get approval from the Chinese government to use their server infrastructure to power their in-house generative A.I. models, which are in fact the bigger deal, right, for Apple intelligence notification summaries, writing tools,

image Generation Z emojis to create your own emojis, right? At least for iCloud, they have to use a partner right in China with government affiliation. And so they may end up having to do something similar if they want to get Apple intelligence working in China, right? And China is one of two major markets, the other being the European Union, where the AI features are not available on the iPhone, and there's no clear release date for when that will happen. And I don't anticipate that happening for at least a year.

iPhone Demand Surges in China

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iPhone Demand Surges in China

iPhone Demand Surges in China

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