Apple might surprise everyone in the AI competition, and here’s the reason why.

Apple is like that quiet kid in the back of the class who ends up acing the exam. While everyone else is talking about AI, Apple is quietly integrating it into their devices. Forget chatbots, Apple is bringing AI directly to your iPhone. The real game changer is in 2024, when Apple’s Edge AI opportunity kicks in. They may not shout about it like other tech giants, but don’t underestimate Apple’s ability to shake things up. 🍏🤫

Apple’s AI Strategy 🤖

Shares of Apple are experiencing their worst start since 1982, but 2024 could be the year that Apple takes center stage in the AI race. Apple’s CEO, Tim Cook, has focused on integrating AI into its ecosystem of devices and services, envisioning AI as something seamlessly embedded into the user experience. Unlike competitors, Apple sees AI as an integral part of its devices, rather than requiring a change in user behavior. This approach positions Apple as a dark horse in the AI race, with the potential to revolutionize the industry.

The Edge AI Opportunity 📈

2024 is anticipated to be the year when Apple’s Edge AI opportunity comes to fruition, catalyzing a new upgrade cycle and boosting services spending per user. This refers to the concept of large language models running on smartphones instead of the cloud, leveraging Apple’s two-billion-plus installed base and the mlx framework. This strategy allows developers to build models on Apple’s powerful in-house silicon, creating a unique advantage based on device-level AI processing.

Unique Marketing Strategy 📱

Apple’s marketing strategy for AI is notably distinct from its competitors. While other tech giants lavish attention on AI, Apple has been relatively reserved, preferring the term "machine learning," which is a more technical yet accurate description. This understated approach has led to some challenges in the market, contributing to early weakness in sales of iPhones and Mac computers. However, Apple’s measured approach to new technologies, historically avoiding a reliance on first-mover advantages, suggests a carefully planned entry into the AI space.

Strategic Product Launches 🚀

An upcoming launch, the Vision Pro, could play a crucial role in Apple’s AI ecosystem. The device is set to be released in less than a month and holds the potential to underpin Apple’s AI strategy. As Apple’s plans unfold and their AI status becomes clearer, it is essential to stay tuned to related podcasts and announcements for further insights.

For more in-depth analysis, tune in to the Tech Check podcast for a comprehensive breakdown of Apple’s under-the-radar AI status later today.