AI more important to investors than a headset, claims Ming-Chi Kuo
Investors are less interested in Apple's headset than they are about AI, analyst Ming-Chi Kuo claims ahead of Monday's packed WWDC keynote.
Siri, Apple's main public-facing machine learning feature
The WWDC keynote is expected to chiefly focus on the Apple VR and AR headset, but that's only one part of the sprawling empire investors are interested in. According to TF Securities analyst Ming-Chi Kuo, investors are more keen to know about its AI-related efforts.
In a Sunday tweet, Kuo offers some notes from "recent discussions with investors" talking about WWDC. On the headset, it is believed that if the announcement is successful, it could "immensely impact 3D interaction design and 3D computer graphics," such as ChatGPT has on AI and AI-generated content (AIGC).
If the announcement can beat market expectations, Kuo feels the headset can "still benefit Apple and key supplier stocks."
However, the bulk of Kuo's post revolves around the aforementioned AI and AIGC, as investors have "recently been more interested in when Apple will launch ChatGPT-like services" than the headset. In fact, the long-term success of the headset apparently hinges on whether it can "integrate highly with AI/AIGC."
Part of this is due to the lack of potential "substantial revenue and profit" for suppliers over the next two years compared to the apparent promise of AI. Kuo cites Nvidia's "marked better-than-expected Q2 guidance" as evidence of this shift in focus.
Kuo does offer that there is a chance for AI or AIGC services to appear in WWDC, with such an announcement able to "help continue the current AI investment sentiment."
If Apple's requirements for AIGC entail higher hardware specifications, Kuo adds it could lead to a "hardware replacement demand" increase.
While Apple is certainly working on building up its machine learning efforts, it may be a case of other developers taking advantage of similar services first. One April survey determined that 80% of Mac developers intended to integrate ChatGPT into their apps.
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under Siri Suggestions & Privacy
I want a new damn iMac to replace my 5K!
For further consideration: ‘I've got you by the motherboard’…0.16
So far Siri itself is just too weak to do that right, but together with a ChatGPT like ability to follow a dialog that would make extreme sense.
Last but not least: We all know Apple will not talk about these kind of thing until it is deemed ready for consumption. But, current AI implementations (as impressive as they already are) are still not fully there yet.
Nobody knows what will stick and be the next gold mine so they are splashing cash.
It's investor FOMO out there.
Part of the roadmap necessarily involves first generation hardware which doesn't need to meet any 'market expectations' except for Apple’s.
Early adopters will have to be very aware of what isn't said at any presentation. Probably more than with what is said.
In fact, the entire industry has been moving to the same overall goals for years now.
Will AI be a key part of it? Of course it will - at some point.
That's part of industry goals too but AI isn't limited to the CE environment. In fact, CE is not where AI will see its major advances.
Things converge. It's how technology moves forward.
From a purely product centered viewpoint, I think it's wrong to speak of 'doom' or 'failure' when the ultimate goal of the product today is not to resolve all the known issues in one go.
It can't, and we know it can't. That applies to an Apple device and any other XR device currently on the market or coming to market.
Industry wants to move the 'screen' to a more immersive position. That means taking it out of your hand and getting it onto your head/eyes.
That makes a lot of sense.
Phones and tablets won't go away but, long term, XR will carve out an ever increasing niche for itself (along with other' sensorial' aspects which, for some reason, no one is talking about).
Apple is dependent on investors but XR won't have any real impact for a few years so whatever gets announced shouldn't impact that side of things.
Market expectations should be the least of anyone's worries.
Now the LLM AI neuro-networks is an incredible feat. Its problem is the LLM GPT-4, just makes stuff up. Convincingly. A carnival barker extraordinaire. That is what is driving investors to AI.