Apple had a massive quarter with gigantic revenue beat, China recovery, and $85B iPhone quarter, but faces existential AI strategy question.
Host 1
Asks how Apple navigated memory chip price concerns without margin impact.
Host 2
Mark Gurman
Apple buys components quarters to years in advance with locked-in pricing, giving them extensive pricing power over competitors.
Notes AI strategy and succession are off table due to blowout quarter, questions long-term viability without AI.
Host 3
Mark Gurman
At some point Apple will need to fulfill AI desires and figure it out.
Apple working with Google for AI models instead of big internal spend - asks if smart strategy.
Host 3
Mark Gurman
Apple has no choice but to partner with Google - they have nothing internal, couldn't work with Anthropic or OpenAI.
Asks how Apple beat China expectations again.
Host 2
Mark Gurman
New iPhone design drove sales - first new design in half a decade brings in new customers.
Asks about Apple buying Israeli AI startup for facial movement interpretation.
Host 3
Mark Gurman
Startup will enable features for AirPods and headsets but isn't fundamental to overall AI strategy.