Apple CEO Tim Cook appears to be baffled with concerns that advances in AI could overthrow the iPhone's advantage.
In a revenue call on Thursday, Bank of America analyst Wamsi Moen asked Cook directly how Apple is preparing for a world where Apple's reliance on screen-based devices “significantly reduced” thanks to advances in AI.
Cook doesn't seem to see any imminent threats to Apple's hero products.
“It's hard to see a world where your iPhone doesn't live when you're thinking about everything the iPhone can do, from connecting people to using your app and gaming experience, taking photos and videos, to helping users explore the world, explore their financial lives, and paying for things,” Cook said.
“And that doesn't mean we're not thinking about anything else either,” Cook added.
It didn't seem that Cook wasn't worried about advances in AI disrupting Tech Giant's business, but Apple is slow to release new Apple Intelligence features, and analysts have different opinions about its competitiveness.
“While AI Arms Race could put pressure on Apple's bold moves, including potential acquisitions, a disciplined approach to product quality should help maintain a competitive advantage in the premium market, subject to the required R&D investment in AI.”
Wedbush analyst Dan Ives said in a research note after calling the company's revenue beat “a big step in the right direction” after the call, saying, “Now it's time to deal with the elephants in the room… AI strategy is absent while the rest of the tech world focuses on the AI revolution at Warp Speed.”
