WEBVTT - ICYMI: Apple’s AI Push to Hinge on Robots, Security, Lifelike Siri

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News. You're listening to Bloomberg

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<v Speaker 1>Business Week with Carol Masser and Tim Stenoveek on Bloomberg Radio.

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<v Speaker 2>We want to get to Apple headline crossing just a

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<v Speaker 2>moment ago, Apple plotting. It's AI come back, artificial intelligence

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<v Speaker 2>with an ambitious late of new devices, including robots and

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<v Speaker 2>a lifelike version of Siri. There's a lot more. Let's

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<v Speaker 2>just get to the guy who knows this company and

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<v Speaker 2>put out this story. Here's our own Mark German, and

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<v Speaker 2>he's Bloomberg News Managing editor for Global Consumer Tech. He's

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<v Speaker 2>out there on the West coast. All right, walk us

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<v Speaker 2>through your exclusive What did you learn about what AI?

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<v Speaker 2>Apple is up to when it comes to AI?

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<v Speaker 3>Mark, So, the conventional wisdom is that Apple is lagging

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<v Speaker 3>right now. It has no future, The product pipeline is

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<v Speaker 3>very limited. They're struggling in AI. The world is ending,

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<v Speaker 3>and Tim Cook should be fired as CEO. I think

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<v Speaker 3>I came on here a few weeks ago tell you

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<v Speaker 3>that there's no way Tim Cook is going anywhere. And

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<v Speaker 3>it is true that they are struggling terribly in AI.

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<v Speaker 3>But at the end of the day, Apple is a

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<v Speaker 3>hardware company, and they have been planning this big new

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<v Speaker 3>hardware pipeline. At the center of it is robotics, a

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<v Speaker 3>push into smart home and home security, multiple new versions

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<v Speaker 3>of Siri, and a slew of other devices from smart

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<v Speaker 3>glasses to headsets to foldables. The centerpiece of the renewed

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<v Speaker 3>AI hardware strategy is a tabletop robot that's coming in

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<v Speaker 3>twenty twenty seven sometime around then. This is a device

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<v Speaker 3>that would sit on your desk, sit in your kitchen,

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<v Speaker 3>sit in your living room. It would have an iPad

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<v Speaker 3>like display with sensors and a robotic arm, and the

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<v Speaker 3>arm would be able to push the display around the

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<v Speaker 3>room to follow people, to look at you, to summon

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<v Speaker 3>you or be summoned by you, help you get work

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<v Speaker 3>done throughout the day. The idea is to bring artificial

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<v Speaker 3>intelligence to life in a way that hardware companies have

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<v Speaker 3>not done so before, blending the AI with hardware manipulation

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<v Speaker 3>and robotics. The companies also working on a home pod

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<v Speaker 3>with a screen for next year.

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<v Speaker 4>This is a variation of that robotic device.

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<v Speaker 3>This would not have the robotic arm, but would have

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<v Speaker 3>a similar display and functionality. There's also several new versions

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<v Speaker 3>of Siri in the works. There's a redesigned Sery visually

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<v Speaker 3>for the iPhone, the iPad of the Mac. There's new

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<v Speaker 3>underpinnings to that Sery we've talked about that. Apple has

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<v Speaker 3>signaled that this is a revamped to Sery coming in

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<v Speaker 3>the spring. There's also a new visual version of SIY

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<v Speaker 3>for home devices. It uses something similar to Microsoft Clippy

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<v Speaker 3>from twenty thirty years ago, remember that virtual assistant yep.

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<v Speaker 3>And then you also, I know there's a lot. I

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<v Speaker 3>have a push it to home security with a new

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<v Speaker 3>home security camera system taps into a home door bell

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<v Speaker 3>as well. This would compete with Ring and Nest and

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<v Speaker 3>ADT and other companies, and also is the sensors at

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<v Speaker 3>the center of a home automation strategy.

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<v Speaker 1>So, Mark, you gave us a lot to think about.

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<v Speaker 1>We have a couple of minutes left with you. We

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<v Speaker 1>don't have a Crystal Ball, but we have Mark German,

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<v Speaker 1>which is the next best thing. If there is sort

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<v Speaker 1>of a single device in here that's iPhone like in

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<v Speaker 1>the sense of it being the center of the universe

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<v Speaker 1>for Apple, does one of them stick out to you

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<v Speaker 1>as that I.

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<v Speaker 3>Don't think the iPhone in the next five to ten

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<v Speaker 3>years is going to go away as the center of

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<v Speaker 3>the universe.

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<v Speaker 4>What I do think is going to happen.

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<v Speaker 3>Is the next generation of ecosystems. You know, instead of

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<v Speaker 3>being built around the phone and the cloud, it's going

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<v Speaker 3>to be built around AI.

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<v Speaker 4>So all the devices right including.

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<v Speaker 3>The phone, are going to get demoted a bit and

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<v Speaker 3>AI is going to become the center of the universe.

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<v Speaker 4>And so you're going to have your phone, your home.

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<v Speaker 3>Devices, your earbuds, your glasses, your watch, your computer, et cetera,

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<v Speaker 3>and those are all going to be built around AI

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<v Speaker 3>as the center, moving away from the phone and the

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<v Speaker 3>cloud as the center.

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<v Speaker 2>So the prototypes all ready to go. H oh, they're

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<v Speaker 2>getting up the assembly lines and they're going to hit

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<v Speaker 2>the stores, right, they're all ready to go, or not yet.

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<v Speaker 3>In terms of these devices, everything that I'm talking about today,

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<v Speaker 3>those are mostly forward looking. We're talking about things coming

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<v Speaker 3>out twenty six, twenty seven. There's a mention in the

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<v Speaker 3>story of a robotic arm for retail stores and manufacturing

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<v Speaker 3>that's probably five seven to seven years away, so we're

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<v Speaker 3>talking twenty thirties.

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<v Speaker 4>There. I mentioned the.

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<v Speaker 3>Foldable iPad MAC device that's going to be at the

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<v Speaker 3>end of this decade. The foldable iPhone is going to

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<v Speaker 3>be at the end of next year. This year, in September,

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<v Speaker 3>a little less than a month from now, Apple's going

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<v Speaker 3>to introduce its first redesigned iPhone in several years. This

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<v Speaker 3>is the iPhone seventeen line, also the slim down iPhone,

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<v Speaker 3>new AirPods, and new Apple Watch Ultra with a slightly

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<v Speaker 3>larger display and satellite connectivity for hikers. So in the

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<v Speaker 3>near term, some good stuff. In the long term, some

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<v Speaker 3>much cooler stuff.

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<v Speaker 1>You know, the hardware that you've highlighted is nothing without

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<v Speaker 1>the software mark, and you've documented the struggles that Apple

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<v Speaker 1>has had when it comes to its own work with

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<v Speaker 1>AI software talking about potential acquisitions. Can Apple pull off

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<v Speaker 1>this hardware with the way the software is now?

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<v Speaker 4>Yes.

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<v Speaker 3>So, as I mentioned in the story, they're looking at

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<v Speaker 3>two directions for revamping the underpinnings of Siri.

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<v Speaker 4>One is called Linwood and one is called Glenwood.

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<v Speaker 3>Linwood is using upgraded versions of the company's own internal

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<v Speaker 3>foundation models. That's the team that Meta has been poaching

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<v Speaker 3>a bunch of people from, including the head of the team.

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<v Speaker 3>We talked about this a few weeks ago. Glenwood is

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<v Speaker 3>using a third party provider to rebuild Siri, so building

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<v Speaker 3>Sirie around models from a third party, and obviously third

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<v Speaker 3>parties like Anthropic, like open Aiye, like Google, they've proven

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<v Speaker 3>out their models, they work extraordinarily well. And so Apple's

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<v Speaker 3>backup plan essentially is to go external so they're able

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<v Speaker 3>to get their internal models up to snuff. And honestly

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<v Speaker 3>that makes a lot of sense, all.

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<v Speaker 2>Right, kind to leave it there, Mark, thank you so much,

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<v Speaker 2>of course. Bloomer's Mark German joining us with the latest

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<v Speaker 2>on his exclusive on Apple. Mark is Bloomberg News Managing

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<v Speaker 2>editor for Global Consumer Tech. He's out there on the

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<v Speaker 2>West Coast. Shares of Apple have been as high as

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<v Speaker 2>two point three percent interday high rising on Mark's story.

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<v Speaker 2>The stock still up, but now only again of about

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<v Speaker 2>one point four percent. But we have seen Apple shares

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<v Speaker 2>popping since August fifth, so we have seen a move

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<v Speaker 2>in a big way to the website for Apple over

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<v Speaker 2>the last week or so. So interesting reporter. Check it out.

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<v Speaker 2>It's on the Bloomberg and at Bloomberg dot com.