Richard Bastar
221 posts










i interviewed marketers about their ai-obsessed bosses






Tim Cook is one of the greatest CEOs of all time and the cope from the haters this cycle has been frankly a sight to behold. When he took over Apple in 2011, it was a $350B consumer hardware company that was selling the iPhone 4 lol. Now it’s a $4T+ free cash flow machine where Services alone is a $100B+ ARR business & AirPods is a bigger standalone business than most Fortune 500 companies. Going from a Phone OEM to a company with monster recurring revenue without breaking the core product is not easy to pull off. Now people will see this master stroke and then be like oh but they are falling behind in the AI race. The problem with that line of thinking is that people think "AI strategy" means setting $100B on fire to rent H100s and become a low-margin neocloud. They want Apple to just blow all of their money instead of building a real differentiated product. Apple probably looked at the inference market early on and correctly decided not to play a game where the winner gets 20% gross margins and a terrible balance sheet and let everybody else fight it out. Nvidia did the same thing. Neoclouds look more like industrials why the fuck would you destroy your 75% margins for that? The actual Apple AI strategy is a lot more smarter than haters give credit to. They own the silicon, own the OS, and can run inference on the device better than anyone. M5 ships with neural accelerators in every GPU core, 153 GB/s unified memory bandwidth and if you believe flash has room to run… much more. Your data never leaves the phone, your AI never goes down because AWS had a bad day, and you don't get billed by the token. No competitor has the silicon plus OS plus distribution to replicate that and I truly believe on device inference for trillion parameter models is coming in next 5 years. The fact that Ternus is succeeding Tim Cook is very bullish for that. They didn't pick a finance guy or a services guy. They picked the head of hardware engineering because the board knows this is the future for Apple. The people dunking on Cook have never built a free cash flow business in their lives. You actually need to be successful first to understand why a business needs to defend a margin profile, allocate capex against a portfolio, or make a decision that looks slow now but obvious for 10 years. You can't expect the junior varsity players to understand the decisions a pro would make.





























