Apple AI Is A Win for OpenAI and NVIDIA, But Not for Apple
Apple (AAPL) will incorporate OpenAI’s LLMs into its next gen OS, which means revenue and cache to OpenAI, revenue to NVIDIA (NVDA), but I do not believe that Apple will win marketshare for the iPhone as a result.
I believe that GenAI will be table stakes for phones and mobile devices - especially as it relates to AI assistants which will power everything from online shopping to scheduling meetings to placing phone/video calls and texts to ordering prescription meds (all of the stuff Google foreshadowed with its Google Assistant back in 2018).
Apple had no choice but to partner with OpenAI or Google for GenAI, which hopefully will help Apple maintain share and pricing if you are an AAPL investor.