Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Questions over Apple's AI
Speaker 1: strategy will hover over the earnings call and for more
Speaker 1: on what exactly the company is doing and how it's
Speaker 1: all shaking out. We want to bring in someone with
Speaker 1: a deep, deep understanding of the company, it's culture, and
Speaker 1: its innovation, and that is Steve Wozniak. He co founded
Speaker 1: Apple alongside Steve Jobs decades ago. Steve, such a pleasure
Speaker 1: to speak with you. Thank you so much. You are
Speaker 1: a former Apple insider, you're current devoted Apple user.
Speaker 2: We know that.
Speaker 1: And the initial version of Apple Intelligence was made available
Speaker 1: through an iOS update to iPhone sixteen and iPhone fifteen
Speaker 1: pro users. I know you've praised the demos. Have you
Speaker 1: got a chance to test out the new software and
Speaker 1: if so, what do you think of it?
Speaker 2: Yeah?
Speaker 3: I just installed along with everyone else when it wasn't
Speaker 3: beta the iPhone update, and I tried a few little
Speaker 3: like Siri searches, Siri questions to look for data. I
Speaker 3: made them a little more complicated in my wording than
Speaker 3: sirring normally gets and they work fine, So maybe it
Speaker 3: was better.
Speaker 2: I couldn't tell you for sure.
Speaker 3: I like to use things for a long time before
Speaker 3: I really comment on are they good?
Speaker 2: Are they worthwhile? This? And that?
Speaker 3: I mean once in a while I can tell right away,
Speaker 3: but not yet here, Not yet here.
Speaker 1: Okay, So there's still a lot that you're going to
Speaker 1: play around with. How does that compare with how you
Speaker 1: use Apple or Apple tools or any AI tools right
Speaker 1: now in your daily life. I'm just trying to get
Speaker 1: a sense of how you anticipate using Apple AI tools
Speaker 1: to enhance what you need to do right now.
Speaker 3: I pretty much avoid large language models because I want
Speaker 3: things to be really that I know it's accurate, like
Speaker 3: something works rather than it didn't work.
Speaker 2: And I don't like to be surprised.
Speaker 3: I want to think about everything that I read or
Speaker 3: hear and really think it out and that I understand
Speaker 3: it and can express it my own words. That's AI
Speaker 3: actual intelligence.
Speaker 4: Well, that's just it's not everybody body is, you know,
Speaker 4: jumping on board the AI bandwagon. Is Apple going to
Speaker 4: cater to those people that don't care about AI, almost
Speaker 4: would turn it off if it was on their phones,
Speaker 4: to ensure that they will continue to upgrade each cycle.
Speaker 3: Oh, I think most of us are on an AI
Speaker 3: bandwagon and appreciate it very much, but of lightweight stuff.
Speaker 2: I mean, like we've had.
Speaker 3: AI for quite a while, the highest intelligence of how
Speaker 3: computers can think out and predict what you're going to
Speaker 3: want in your life, kind of like our old Knowledge
Speaker 3: Navigator going back, you know, thirty forty years. It was
Speaker 3: like a little demo we made up of what computers
Speaker 3: could do if they could really think.
Speaker 2: And we're moving closer towards that. But the inaccuracies.
Speaker 3: Does it really help you? If it doesn't create, it
Speaker 3: just repeats things. So it's a very good search engine
Speaker 3: for me. It finds things on the web. I wish
Speaker 3: it had citations that you could click on any item
Speaker 3: that came back to you from AI and say or
Speaker 3: just question it verbally and say where did this come from?
Speaker 3: And let it tell you, just like all the citations
Speaker 3: in scientific journals that are advance our knowledge.
Speaker 4: So, as you know, Steve Apple has always been very first.
Speaker 4: It hasn't been the very first of certain things, but
Speaker 4: it usually ends up being the best at something. What
Speaker 4: would you advise, you know, the current team to do
Speaker 4: in order to be the best AI?
Speaker 3: I don't know how the best testing you can Apple
Speaker 3: already shows that it cares so much about the employees
Speaker 3: and the users and you know, diversification and you know,
Speaker 3: and also not tracking you being a little more private
Speaker 3: than the others. So I think that's a good sign
Speaker 3: that Apple is going to pay attention to you know,
Speaker 3: not taking advantage of you with AI, and largely though
Speaker 3: it's up to the user, I think a lot of
Speaker 3: user education should come along with this.
Speaker 1: Yeah, Apple has definitely made privacy one of its differentiating
Speaker 1: points when it comes to its innovation, especially when it
Speaker 1: comes AI. Do you think overall, just taking a step
Speaker 1: back as we talk about these earnings from these big
Speaker 1: tech companies, that investors and financial markets overall are impatient
Speaker 1: when they punish companies for spending too much on AI
Speaker 1: and not having enough to show for it in terms of,
Speaker 1: you know, a monetization or some kind of tangible return.
Speaker 3: Well, what comes in the form of AI and how
Speaker 3: good it is is really created by the upper executives
Speaker 3: in a company. But the trouble is, the upper executives
Speaker 3: in a company don't exactly own it.
Speaker 2: It's all the.
Speaker 3: Little shareholders like you and I and others and investors
Speaker 3: and so and so they're watching every little report and
Speaker 3: everything and turn.
Speaker 2: The stock up and down.
Speaker 3: Apple is a little bit, and I do recognize the
Speaker 3: problem of iPhone being kind of the major product. We
Speaker 3: are sort of closer to a one product company. There
Speaker 3: were times with the Apple too, we were one product company.
Speaker 3: There were times with the Macintosh and even a fortune
Speaker 3: you know, five hundred company way up on the list,
Speaker 3: like Fortune twenty. Our stock would drop by a third
Speaker 3: in one day sometimes and you didn't have a backup
Speaker 3: of a lot of other products, you know, like the
Speaker 3: Apple Services and Apple Pay and all that to kind
Speaker 3: of balance things out a bit. So that is a concern.
Speaker 2: That I do agree with. You got to keep your
Speaker 2: eye on it. But Apples still doing a good job
Speaker 2: for the Apple.
Speaker 4: Community well exactly, and for investors, Steve, I wonder what
Speaker 4: kind of a job you think Apple is doing. You've
Speaker 4: been around, you know, the financial world a long time.
Speaker 4: Is the price at two twenty five there are thirty
Speaker 4: nine buys and you know many of those price targets
Speaker 4: are higher. Is it trading at a good valuation in
Speaker 4: your estimation?
Speaker 2: Yikes?
Speaker 3: I'm a user type person, not an investor. I have
Speaker 3: never used Apples stock. App when I was eighteen to
Speaker 3: twenty years old. I came up with a formula that
Speaker 3: a I'd never be political and never vote, but also
Speaker 3: that I would be I wanted to be happy in life,
Speaker 3: and that meant smiles minus rounds. If you're constantly watching
Speaker 3: something to go up and down stock or valuation of
Speaker 3: this and that, you're you're not going to be that happy,
Speaker 3: you know. So I just like to let my head
Speaker 3: run nice and smooth.
Speaker 2: That's just me.
Speaker 3: And I like to observe things and be an observer
Speaker 3: and obviously be affected by things. But I'm just I
Speaker 3: just can't get into that.
Speaker 1: That's one's enserves in a different way, right exactly, Steve,
Speaker 1: you're joining us.
Speaker 2: One is frowns, and I like to avoid frowns.
Speaker 1: Okay, sounds good, Steve. We'll leave you to it. Steve
Speaker 1: Wozniak is co founder of Apple