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do you have a device or an angle for Apple to go after if they were truly ambitious or maybe they are and it's
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just in stealth what do you think you think it's the goggles the glasses you think it's a pendant you think it's
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Optimus what do you think i don't think they have any chance of anything great love it i would take the exact opposite
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of what Freebrook says look at this chart and I'll tell you why okay here we go this chart is not This chart is not a
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strategy so this is a chart of Apple's revenue and what you see is iPhone has completely stalled out and so to
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Thomas's point where do you make money you make money in other hardware this is not a strategy of success this is a
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strategy of inefficiency i lost my AirPods i need to buy a new pair oh the cables changed i need to buy
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a bunch of those this and that and a this and that strategy is not a strategy it's a tactical play for revenue
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optimization in the short term a company that focuses on this kind of revenue growth is not capable of creating
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something that's exceptionally unexpected that will come from a new company who has no ties to the past has
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nostalgia on the fact that we're going to swap out the connector type and you know book
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another billion dollars the what Thomas said is an indictment actually about their ability to do it when your AirPods
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business is two or three times bigger than Open AI what there is internally when you try to have a strategy meeting
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about what to do is derision about Open AI because you're like that's small and even our AirPods business is three times
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big that's what some smartass MBA will say in that meeting and it'll shut the meeting down
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so how do you expect that culture to then all of a sudden get their act together i think it's exceptionally hard
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and here's the clip on Q play the clip Nick it's a great point here's the clip i'm Apple nostalgic me too bring Steve
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Jobs back watch this lunacy you probably saw that Johnny IV has linked up with Open AI to create some sort of future AI
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device yeah I don't know what that is i don't either yeah is this a space that Apple's
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looking at is this a space that goes beyond what you have in the current lineup of devices something that is more
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personal maybe you wear it glasses i I think I mean I think we have some extremely personal wearable devices if
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you want something that's uh aware of your environment with with audio I think you're you're wearing one right now on
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on your wrist um if you want something that you can capture the environment with and see and also receive visual
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content you might just have one in your pocket right now um are there other form
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factors that can make sense to AI uh sure but uh pretty hard to beat something that's uh with you all the
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time and glancable or you know provides a nice screen that you can interact with
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um so uh yeah I I don't know what they're working on what do you think Jimoth again I think I want to be very
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clear about what I'm saying that is a very competent Craig Federi very very competent executive
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and whoever the person beside him is that guy's I'm going to assume competent as well they're competent at making
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money the way that they've made money for the last 17 years with no meaningful disturbance
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and I think it's just something to appreciate that after 17 years of unmitigated linear success it's very
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difficult to retool yourself it's like asking Michael Jordan to go and all of a sudden become an all-star baseball it
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doesn't work and so I think I I think it's okay though this is my point it's okay guys to have creative destruction
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of companies like there was probably a version of us blathering on about HP and being nostalgic about the transistor
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radio that they made and the you know HP12B calculator that they made and oh my god why can't they figure their
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out and where are we today hp doesn't even exist it's okay i mean just Thomas the fact that they launched Siri they
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bought that company and Siri can't do anything other than like an alarm can barely play a song it barely can do
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directions i I I mean literally we're in year like 27 of Siri and it can't do anything and then I have the the Google
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and Gro voice and when I turn that on it does whatever I want it will load on my
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Pixel it loads other applications fires it off does specific tasks in it it's absolutely discretzia on your on your
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Pixel I have a Pixel when I when I flip open my Pixel I have to I have the Pixel 9 Chimath it's the
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Anaconda of smartphones pixel 9 foldable got it it's the greatest assistant ever
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it's what Siri It's what Steve Jobs showed Siri i had you at nine you had me at Anaconda yeah I had you at 9 in and
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we can all aspire maybe get Roman extra get that extra inch thomas go ahead chimath I would argue to you that I
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think this management team has done it once and it's in the transition of their gross profit base which doesn't show in
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the chart that you just highlighted but was something that I kind of lived as an
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analyst covering the stock for a long time where if you remember over a decade ago 90 plus% of their gross profit was a
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onetime hardware sale on the iPhone and no one thought that they would ever be able to get away from the drug of
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selling that one iPhone unit right and cut to you know over a decade later it's 40% right and I don't think they get
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enough credit for actually transitioning from hardware to a recurring gross profit base but look you might argue
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that that was an easier pivot and challenge than what they're going to face and so let's see whether they can
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do it the other thing guys I wonder about um let's I know we want to talk about IPOs
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but I do wonder whether Zuck buying scale for 15 billion gives air cover for other companies to really start being
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aggressive right and and to me as we think about circle and coreweave two companies that have gone IPO recently
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it's it's kind of amazing kind of numerically that the charts are almost identical even you know on a dollar
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basis on a share price right because to me what it says we were talking about the dispersion of the Mac 7 before right
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which are going to do well which are not i expect we're going to have a lot of opinions on this over the next few years
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and frankly they may change we you know we may think Apple one way today it may change in a month right but I do think
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the market is starting to realize that there is dispersion that AI might create some all winners or some winners and
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then some losers right and is starting to think about okay how do I want to be positioned for the next five years what
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are big open-ended growth opportunities and here comes two companies one lever to crypto right and the other lever to
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AI so I don't think it's a surprise to me these things are intertwined you're 100% on because here's the thing the
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average profit margin of the S&P 493 is drum roll please 12% the average growth of the S&P 493 is drum roll please
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single digits so to your point why would you belong any of these 493 companies that may turn around and one day just
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get decapitated by something you don't even know that's getting cooked up by a couple kids in a garage using OpenAI or
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Grock or what have you it just makes a lot more sense when you find investable companies in the big themes of the
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future to at a minimum hedge right be less long the past and frankly make some bets about the future and I think that
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that's where you're seeing these IPOs just absolutely rip what is a better comparison in my opinion are the
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companies that are truly levered to the future themes of AI and crypto versus any of these IPOs that have happened of
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companies that are not and I think what you see is there's a dispersion there as
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well and they are being treated almost as similarly Jason as the S&P 493 it's like yeah it's good yeah
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it's fine they get some reasonable gains but if you're lever to any of those two
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two trends you're off to the races because it's just so disruptive people don't want to be bag holding these old
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legacy companies