Apple Looks To AI For Post iPhone Era

In many ways, Apple is on top of the business world because of the iPhone. Technology and foresight allowed Apple to become one of the top three global companies by market cap thanks to the iPhone. Fourth quarter 2018 numbers showed $62.9 billion in revenues and the shipment of Apple’s 2 billionth iOS device, “with the strongest revenue and earnings in Apple’s history”.

So far, so very very good.

But, iPhone sales are slowing for the first time ever – and Apple is not waiting until the cash cow stops giving milk.

As we reported in December, Apple hired John Giannandrea from Google in the summer of 2018 as their new SVP of Machine Learning and AI, and a few months later promoted him to the executive team in a sign of things to come.

“Machine learning and AI are important to Apple’s future as they are fundamentally changing the way people interact with technology, and already helping our customers live better lives. We’re fortunate to have John, a leader in the AI industry, driving our efforts in this critical area”, said Tim Cook, Apple’s CEO, at the time.

The WSJ today talked more about the leadership shakeup surrounding John’s promotion, as the company focuses its future strategy on services and AI: HR, retail and Siri executives have left the company recently, with engineering staff being redirected to AI and services, to compete with Google, Amazon, Netflix and others. The journal reports $14.25 billion on R&D by Apple, almost a quarter higher than a year before.

Tim Cook decided to stop reporting iPhone sales numbers and to point towards the growth of the App Store, music, video, and digital payments instead.

If Apple at record revenue and profit numbers decides to make a complete pivot towards AI and ML, asset managers should pay close attention, as financial services will be next – either the next leaders and innovators or the next BlackBerry or MySpace.

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Written by

Daniel Enskat

Daniel has written over a dozen books on the global asset management industry and has lectured at universities around the world alongside speakers such as Secretary of State John Kerry, Dr. Mark Mobius, ex-Fed Chairman Alan Greenspan, Professor KC Chan and former Prime Minister Gerhard Schroeder.

He is widely sought after for presentations, discussions and his perspective on the global asset management industry, and in the last two decades has advised hundreds of investment management CEOs on strategy and global expansion.