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Apple's net margin has been between 20% and 27% for the last 14 years. This isn't exorbitant profits by my standard.
As of the second quarter of 2024, Apple’s gross margin amounted to around 42.27 percent. Gross margin is a financial metric that takes the difference between a company’s revenue and its cost of goods sold and then expresses this number as a percentage of total revenue. More simply expressed: in the second quarter of 2024 Apple sold its products with an overall markup of 42.27 percent over their total cost.
 
Well that will be anything relating to Home Kit then. Because I'm pretty sure local devices don't run turning your lights on and off when you ask Siri.
Asking Siri may require cloud use, but Home Kit sends the commands over your local network.
 
Hardware doesn’t mean a thing if Tim can’t squeeze a subscription out of it. The new Apple normal. Maybe some camera features will need a subscription in the future?
 
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Talks about not using Meta because of privacy but then in talks with CHINESE companies. The irony.
They will be required to use a Chinese AI partner for any chatbot that they use in China. China already has rules that require Apple to share more with it than other governments, do.
 
I remember a company that used to say: Think different

The non-profit phase of Apple was ended by Steve Jobs.

The Think different campaign come about because Jobs was desperate. It was wholly created by an ad agency and initially Steve Jobs hated the script for the commercial.

But come on, it's 27 years ago and Apple stopped using any of it at least 20 years ago.
 
Apple really missed the boat with AI. Having to rely this heavily on ChatGPT did look pretty cheap during the iOS 18 reveal, not something I had expected from one of the biggest companies in the world.
In what way do they have to rely in ChatGPT?

Apple is providing dozens of AI driven features in their apps and using AI to enhance photos and Siri and automation in ways that are actually useful for their customers. That is all using Apple’s AI.

They are only providing a link to ChatGPT to answer web questions, similar to how web search works.
 
Wait... I thought rent-seeking meant "the act of growing one's existing wealth by manipulating the social or political environment without creating new wealth"?

Is there a new definition of rent-seeking that I am not aware of?
More recently, it seems to mean “charging money for services”.
 
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They will be required to use a Chinese AI partner for any chatbot that they use in China. China already has rules that require Apple to share more with it than other governments, do.
Otherwise China would stop manufacturing Apple devices.
 
Talks about not using Meta because of privacy but then in talks with CHINESE companies. The irony.
It’s not ironic. Its logical. China is a huge but retroactive market for them. So of course they need to find a partner accepted by china.

The irony would be refusing Meta In the us while working with a Chinese partner.
 
It’s amusing anyone is trying to justify this.

It's how society should work.

Products and services offered by private companies should cost money reflecting their values to people. It's almost essential for an effective, capitalistic society.
 
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They'll probably subtly ruin the experience unless you get onboard and pay up

This is not a product company anymore

It's a services company
They already made it much harder for me to upgrade because they pulled financing options for people who don't have one of the major carriers-- Ive been looking to update since last year and womp womp, it's a no go. They might as well just put out a sub par phone service to go along with all this subscription garbage
 
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All these comments saying they won't use it because of the price… Why?
Because you're concerned it will be a good feature/service but then you'll feel obliged to pay for it to retain access?
“I really don’t know what he said at the end of that sentence. I don’t think he knows what he said either,”
 
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As much as you don’t like AI… I hope you can disable it in system settings for you.

Other than the AI possibilities, iPhone 16 won’t have any compelling reason to upgrade if rumors are true.

Let’s be honest… if MacRumors already is comparing the iPhone 13 with the upcoming iPhone 16 to make the iPhone 16 look more compelling 😅. I’m holding my breath (and wallet).

As for AI… it’s here and soon it will be everywhere. Better accept and make good use of it or buy a Nokia instead.
Nah, Im already looking at the OnePlus phone to replace my craptastic iPhone 12. I don't 'accept' ai garbage lol.
 
Apple will charge a premium price for Apple Intelligence which will essentially be a rebranding of ChatGPT with Apple specific features. And that is Apple Innovation …..😂
You might want to read up a little on Apple Intelligence.

All of that is done using Apple’s AI models. No rebranding of anyone else’s AI.

The only exception is the arms-length ability to query ChapGTP for “world knowledge” type questions. Even that is done is a way that protects your privacy and prevents OpenAI from using your data.
 
It's how society should work.

Products and services offered by private companies should cost money reflecting their values to people. It's almost essential for an effective, capitalistic society.
Correct. They have to either charge for it as a subscription, or raise the price of the hardware $X00 to pay for the development and server/electricity costs. For those of us that upgrade more often, it’s actually better for us that they charge as a subscription so we’re not paying every time we get a new device
 
What are they supposed to add that would get people excited about new products? iPhones have been “good enough” for most people’s purposes for 5+ years now

Most “new” features would make it more Android- or desktop-like, and may not align with their overall goals for iOS

Whether we like it or not AI seems to be the future. We don’t want Apple being left behind, they’re the most ethical of the big tech corporations
Id love to see them fix the overheating problem I get constantly while charging my phone with the apple-supplied charger. It's pretty ridiculous.
 
Nah, Im already looking at the OnePlus phone to replace my craptastic iPhone 12. I don't 'accept' ai garbage lol.
Check the news….

“OnePlus has announced that it will begin rolling out a number of AI features to its smartphones under the umbrella of OnePlus AI. While we don't know a lot about how the full set of features will look, the company is letting us know that all AI functionality is built and based on "genuine user needs."
 
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As of the second quarter of 2024, Apple’s gross margin amounted to around 42.27 percent. Gross margin is a financial metric that takes the difference between a company’s revenue and its cost of goods sold and then expresses this number as a percentage of total revenue. More simply expressed: in the second quarter of 2024 Apple sold its products with an overall markup of 42.27 percent over their total cost.
You are talking about Gross Margin of 42% without also talking about the Net Margin of 26%. Gross is just a subtotal.
 
You might want to read up a little on Apple Intelligence.

All of that is done using Apple’s AI models. No rebranding of anyone else’s AI.

The only exception is the arms-length ability to query ChapGTP for “world knowledge” type questions. Even that is done is a way that protects your privacy and prevents OpenAI from using your data.
It’s weird how many people here, on a tech forum, don’t understand the very topic they’re ******** on Apple for.

Like dozens of comments about Apple relying on other AI companies…when that is literally not how the ChatGPT integration works at all.

I would bet that the AI features Apple has introduced on device and with PCC will cover 90%+ of all the use cases a normal person would need, and that’s precisely because Apple’s approach to AI is that *your* context is the starting point. Every other AI company seems hellbent on scraping together information, but none of it has anything to do with your day to day life.

One of these approaches is going to win the day (I know which I think it is), but neither approach should be viewed as a *business model* unto themselves. That’s why Apple is viewing it as a feature set of their ecosystem. I sincerely doubt we’re going to see a subscription service that remotely resembles anything like ChatGPT, Gemini, etc…
 
Oh yeah? Then why since day one has Apple been portraying itself as doing something positive for the world?

Businesses making profits are GOOD for the world.

Companies loosing money tends to stop creating and maintaining (great) products and services.
 
Id love to see them fix the overheating problem I get constantly while charging my phone with the apple-supplied charger. It's pretty ridiculous.
You may want to take it in to have someone look at that. There is no reason you should be seeing actual overheating while charging, particularly with the cable.
 
If they put Apple Intelligence behind a paywall and people do not adopt the new features. doesn't diminish the brand just a little?
 
If they put Apple Intelligence behind a paywall and people do not adopt the new features. doesn't diminish the brand just a little?
That’s not what they’re doing at all. They were explicit at WWDC. Everything they showed was free if your device is supported…because they are a hardware company.
 
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