WWDC 2023, Apple's event for its developers in which it revealed the Vision Pro, left a curiosity: the company did not once utter 'Artificial Intelligence' despite it being the technological hype train.

In the quarterly results that he published last week, the curious thing was that he said it twenty times. It is no coincidence in a company that studies and controls its story as much as Apple.

Because it is important. Apple has been presenting results for several quarters that reveal an uncomfortable truth: it is increasingly difficult to keep the revenue generated by the iPhone growing. It is normal after seventeen generations. The problem is that despite recent diversification, the iPhone still accounts for 50% of the company's income.

Not Apple Watch or AirPods or iPad. Apple's biggest diversifying success has been boosting the Services division, which includes revenue from the App Store, iCloud, Apple Music, Apple Pay, TV+, etc. And now AI is looming on the horizon, emerging as Apple's next big focus.

The clue to your strategy. After the results there is always a public call with investors and analysts in which CEO Tim Cook and CFO Luca Maestri answer their questions. Goldman Sachs' Mike Ng asked a smart question: He asked whether a tilt toward generative AI could alter the momentum of CapEx (a company's investment in improving its fixed assets).

Maestri responded that Apple has a hybrid model: it makes investments in infrastructure, but also uses suppliers. And he also made it clear that they plan to continue with that same model.

Between lines. That response from Maestri suggests that we can expect generative AI at Apple to come driven by deals with partners like the rumored OpenAI and Google. That is to say: outsource part of the work, at least for a time, seeking a balance between internal innovation and external strategic partnerships.

If Apple does not plan to develop LLMs exclusively under its own servers, it will not be an unprecedented move for the company. In everything related to the cloud, Apple combines the use of its servers with those of third parties such as Amazon.

The perspective. Zuckerberg said a few days ago that Meta's investment in AI would take years to pay off. This means asking investors for patience, promising a return even if it is late, and clarifying that this bet is not immediate.

If Apple, which has more than $160 billion in cash and a habit of reducing its dependence on third parties, is deciding to go for the hybrid model, it may have a lot to do with its image in the eyes of investors: not triggering its CapEx without a clear return in the medium term, but rather reduce your bill in the short term and build a future based on AI.

https://www.xataka.com/robotica-e-ia/apple-pronuncia-inteligencia-artificial-asoma-como-estrategia-post-iphone-mano-otros-socios