In these days, nothing is sure of the technological market or of the world in general. Even the apparently anti -professional stock of Nvidia made a hammer on Monday, enduring a drop in market capitalization of $ 589 billion after Deepseek based in China raised questions for investors on more efficient artificial intelligence models.
But Apple’s actions remained constant before his report on the profits of the first quarter, which is set for the closing bell on Thursday. Although it had a slight success while Deepseek has become the speech of the technological world, Apple’s shares are almost immediately bounced by 7%. This may be necessary for the perception that the company draws rivals such as Google and Microsoft in investments in AI. The fortunes of the company are not closely linked to the successes and failures of the generative.
Certainly, his new Tenpole technologies have submitted, in particular Apple Intelligence, the offer of the Internal Generative of Apple, introduced last summer. The approach of the small model is clearly contrasting with the games of Openai and Google. Conventional wisdom in space claims that it is better. Therefore, many of the best known models are trained on each piece of information that developers can put their hands, regardless of whether or not it could have a direct impact on users’ questions.
However, the massive black box approach makes it difficult-o impossible-determining because a certain data set is subject to hallucinations and it is easy to have an insufficient model, due to a set of too small data. As demonstrated by the recent Rollback of the summaries of Apple Intelligence news, simply adopting a hyper-focal approach on the training of the model is not a magical bullet.
In the case of Apple, iOS 18 provided imprecise summary of the news apps of news apps. (The news industry is already in difficulty, without a further level of disinformation.) Apple has done the right thing by pauseing the function to return to the drawing table. But the problems of the first day can shake the trust of investors when a function is an essential piece of the future strategy of a company.
Those challenges come in a difficult time for Apple. During the holidays, Apple saw a 18% drop in iphone sales in China, due to the growing competition from local brands such as Oppo, Vivo, Honor and Xiaomi. After being put aside by the restrictions handed down by the first administration of Trump, Huawei saw its huge rebound in China while the development continues on its internal harmonics.
It does not help that Apple Vision Pro – which is based on AI and automatic learning models to allow the mapping of the rooms, among other characteristics, is also submitted from the point of view of sales.
But here is the point: if category AI proves to be the bubble that many analysts expect, the different Apple portfolio should strengthen the company’s fortunes. Since most of that wallet is linked to the company’s hardware ecosystem, a key piece of the Apple’s small model’s approach is the desire to perform as much as possible on the device.
Apple has also invested a lot in servers designed to manage the remote artificial intelligence calculations in the form of the calculation service of the private cloud that was launched together with Apple Intelligence. This is an important short -term solution, at least. In the meantime, the Deepseek approach – has released “distilled” versions of its AI R1 model, including one small enough to run on a laptop – lent credibility to a future in which models are performed to accurate generative locally on consumption electronics staff. This would be a great victory for the iPhone producer.
The immediate question for the shareholders who listen to Thursday’s call will be what is around the corner for Apple.
Tracting other companies regarding the development of generative artificial intelligence has led Apple to explore partnerships. At the June WWDC, he announced an agreement with Openai to integrate chatgpt on the platform. The company also remained open to future partnerships, also leaving its plans to slide to collaborate with Google’s Gemini.
It is obvious that any generative artificial intelligence platform would happily collaborate with an Apple stature brand, but it is too early to say what could mean for some future partnership deepseek/Apple. U.S. Deepseek’s ambitions are linked to US relations/in China and is not completely clear how it will end up in the coming months and years.
President Trump launched alarm on Deepsek shortly after his debut, saying to the media: “The release of Deepseek Ai of a Chinese company should be an alarm bell for our industries that we must be focused on the laser on the competition”. The White House has also explored what Deepseek could mean for national security.
There are many speculations on what the current administration will mean for Apple’s China ambitions, even if Apple is not sitting on his hands. Despite the clashes of past culture, the TIM Cook CEO has announced a personal donation of $ 1 million to the inaugural committee of the then elected president. The move came when the technology administration companions embraced the re -election of a president Wall Street considers exceptionally business.
Further issues that further complicate the historically contradictory relationships of the Administration with Big Tech, which Vice President JD Vance has recently described as “too much power”.
Apple sailed with the volatility of the week better than others. But when reporting the earnings of the first quarter after Thursday bell, Apple must present a cohesive strategy for the IA, the sales of iPhone in China and what the future seems widely under the new administration. For the first time for a long time, that future is uncertain.
