Apple’s AI absence may be its advantage

Quiet mode. All tech world seems to talk about is artificial intelligence. Except, that is, at Apple. Microsoft Chief Executive Satya Nella mentioned AI three dozen times in his introductory remarks during software firm’s quarterly results on Tuesday. $2.9 trillion Apple’s earnings release on Thursday didn't even mention it once. Quiet restraint makes smartphone giant a refreshing contrarian bet.

True, companies making large AI pushes have been rewarded by market. Microsoft and Google owner Alphabet’s stock have given investors a total return of 62% and 42% respectively over past year, compared with Apple’s 29%. Alphabet increased its capital investment at an annual rate of 70% in latest quarter. Meta Platforms said on Thursday its capital expenditure might be up to $9 billion higher this year than in 2023, driven in large part by AI infrastructure. Its shares popped 12%. At Apple, meanwhile, investment spending fell year-on-year in quarter ending Dec. 30.

Boss Tim Cook has said Apple’s AI work happens behind scenes. focus is to enhance products, so that image search is more accurate, and iPhones retain ir charge longer. Apple also doesn’t like to talk about products until y are rey. Apple’s work in generative AI for its Siri voice assistant and Messages are hardly secrets, but what will be released and when remain mysteries. Cook promised to share more details on Apple’s AI efforts, but not until later this year. hesitation could mean a missed opportunity: H Apple’s stock kept up with Microsoft's over last year, company would be worth $700 billion more than today.

Apple will benefit from ors’ AI spending indirectly. If technologies take hold, users will spend more time in virtual worlds. That probably means more sales of devices such as Apple’s new heset. Moreover, hefty investment carries no guarantees. If y disappoint, or an upstart crashes party in way Apple did with cellphone business, Cook’s restraint will look even wiser. As ors serve AI hype by bucketful, Apple may be less on-trend than usual. Investors ought to be gl of it.