Mark Gurman

The App Store is a legacy platform.

The iPhone operating system is a legacy operating system.

They need to accelerate the shift to artificial intelligence, the shift to agents everywhere, the shift away from jumping in and out of applications to something entirely new.

They need a shift to a stream of different AI hardware devices.

You know, Apple has been operating the last few years on we're not going to overspend on AI.

We're not going to overhire an AI.

This is a bubble.

It's going to burst.

All these models are going to become commoditized.

And maybe there will be some commoditization on the models.

And obviously you're seeing that with their ability to partner with Gemini here to fix some of their problems.

But AI is not going away.

AI is not a bubble.

It's bigger than the internet was 25 years ago.

And so they really need to shift into this new direction.

And when everything is working so well in terms of sales, it's really hard to do so.

It's hard to operate the current business

and operate the future business.

Operating on two timelines is very difficult.

It's like a sports team that's winning championships.