Ed Ludlow

Apple intelligence isn't available there.

I mean, for what it's worth, no one's really raved about it, of course, Richard.

But what does this actually tell us about the need for a consumer to buy generative AI products?

Apple has still owned this particular season, even though Android, the Google phones, Samsung phones were far ahead in terms of the generative AI offerings.

Absolutely.

And look, people are not going to rush out and say, I want the new device because it has Gen AI capabilities.

They're going to say, I'm locked into the Apple ecosystem for the last 10 years.

All of my other products are Apple and I'm going to keep buying Apple.

The question I asked on the call, which I think is the key one, is why has Apple been a fast follower in AI?

Because they knew it would take time for people to get used to the services.

And right now they only have about 450 or 500 million of their 1.3 billion installed base of iPhones with AI-capable devices, so the 15 Pro or later.

And Apple is now reaching that point where half or more of their base can be the addressable market for a new Siri or AI services.

And I think over time they'll monetize it by getting people to buy better devices, but also adding five bucks to the Apple One bundle for some advanced Siri features.

Richard Kramer, fascinating.

Thanks for being with us today.

I wrote research.

Let's talk about JP Morgan.

It's among the banks that have begun selling down a highly anticipated $20 billion debt financing, backing the acquisition of Electronic Arts.

Now, the biggest leverage buyer on record, remember?

Sources are saying Middle Eastern, Asian, smaller European banks are piling into a term loan A of as much as $3 billion for the video game maker.