In aggregate, what was there to be excited about across the product portfolio? Maribel. I think in many ways we saw exactly the predictable hardware innovations that you would always see with a smartphone launch. We talked about a better camera, we talked about less bezel, so a bigger screen. With the watch, we talked about thinner, lighter. I think for consumers that are coming into these new phones that need to do upgrades, the concept of having the camera button in the visual intelligence was really interesting. Really what sells phones with consumers continues to be the visual aspects. How is the camera? What can we do with photos? What can we do with videos? And we saw a strong showing on that. I think some of the surprises were around things like the health features that they added with sleep apnea and hearing aids. So it was actually in some ways predictable with a few surprises that really focus on usability. I think that health focus is an

interesting one, Maribel, but give us your take on artificial intelligence and Apple intelligence. Is that going to be a winning formula if it's not actually here to use right yet? Well, first of all, I think the concept that it's not here until December or Q1 of next year being a big deal is really overplayed. In general, most consumers are not going out and saying what I really want right now is artificial intelligence. What they want is they want things to be easier to use. They want to be able to capture better visuals, do better sharing, express themselves in different ways. And I think that Apple took a very tempered approach to what artificial intelligence means and really tried to tie it to those things that they thought consumers would find important. So not just artificial intelligence for artificial intelligence sake, but something that's going to make your life better. They talked about personalization and context and how to create videos easier

and how to do emoji. So I think these are things that resonate with consumers. And the timing of that. It'll come to them. They'll use it. But, you know, they're not knocking the doors down for it right now. What they want is they want a phone or watch that's going to be able to run whatever comes next from Apple. Ambient air is how our guest put it yesterday. Just naturally doing it all in the background, Maribel. Go back then to the watches on the AirPods. It did have quite an impact on certain stocks, certainly hearing aid makers at one point in the trade. How much are people going to be spurred to buy this on a health-focused. So I don't know if they're necessarily going to buy it on the health focus. What I think is really going to happen and what the real win is for Apple is the concept of the continuous upgrade cycle.

Once I get that airport in, I figure out that I have a hearing issue or that I can have better quality hearing with this. I think that's a game changer in terms of continual use and constant upgrades. I do think it's an issue for the hearing aid manufacturers. I mean, one of the things that we've always had an issue with is do people want to feel like they're wearing health devices? These are just AirPods, right? Nobody knows if it's a hearing aid or not. So I think there's a lot of opportunity for that. I also just find the usability. Think about not needing to change a battery. As an elderly person, you just have easy charging capability. I think it could be a huge win for people that need to have better hearing. Maribel, It was interesting that inside the Steve Jobs theater, the most audible sort of gasps and excitement was around. Watch and AirPods, in part specifically

sleep apnea and hearing AIDS. We talk about wearables as kind of the jumping-in point because actually the hardware costs less than the smartphone and lowers the barrier to entry. How do you model that for the success of Apple's ecosystem? So when I think about Apple, it is a portfolio approach, right? You have a phone, you have a smart device. But I think the real win for Apple, what they are very good at, is that all these things work together. And the more of you you have, the better your life becomes. And I think they really tried to auger in on we can help you with your health. We can help you with fitness. We can help you with problems that you didn't even know you had. And all of that's attached to the personalization of you and kind of taking what we talked about is that A.I. and really trying to make that relevant in someone's life. So I think moving forward, we're going to continue to see that the health

market is going to be one of the drivers for Apple revenue moving forward. A lot of this was about the what's inside of the Apple iPhone because it hasn't changed that much, ostensibly from the outside. What has changed on the outside is what's going on in China. Huawei, we see a tri-fold phone. How much are we seeing innovation from a hardware perspective coming from China? We actually see quite a bit of innovation coming from China. What I think is very interesting is that Apple continues to have the perspective that the foldable phone is not something that they need to participate in. Clearly, a tri-fold phone is an innovation. The timing of the Huawei launch was really important to try to create some of that fear and uncertainty in Apple's presence in China. And I actually think it accomplished that. But the reality of the situation is foldable devices are very expensive. It's been a limited market for some time.

Samsung has been pushing that rock up the hill for quite a while, and it has also not made that break. So, it makes perfect sense to me if you're looking at a mainstream market, that foldable isn't going to be where it's at. But if you want to talk tech factor, cool foldability is absolutely up.

Apple's Big Bet on AI

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