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562: Let's Break the Law

 

00:00:00 ◼   ► from relay this is upgrade episode 562 for may 5th 2025 today's show is brought to you by oracle

00:00:17 ◼   ► squarespace and delete me my name is mike hurley i'm joined by jason snow hi jason hi mike it's good

00:00:25 ◼   ► to be back good to be back with you and uh happy happy may oh thank you it's gonna be may i'm very

00:00:32 ◼   ► excited for today's episode i've been looking forward to it uh for reasons that i assume most

00:00:37 ◼   ► listeners will understand and we'll get to it a little later on in the show but we don't have

00:00:40 ◼   ► time for that right now because we have a snell talk question comes in from adam who has to say

00:00:46 ◼   ► jason as an e-ink connoisseur would you ever consider an e-ink monitor and i have a link here

00:00:52 ◼   ► jason to the books your friends over at books the books books yeah mirror pro color e-ink

00:01:01 ◼   ► desktop monitor yeah what do you think of this or do what do you think of the idea of

00:01:09 ◼   ► an e-ink monitor in general okay so let's back up sorry to adam but i'm not an e-ink connoisseur

00:01:20 ◼   ► i'm just not you are i'm not this is how the world labels you sometimes when the connoisseurship is

00:01:26 ◼   ► hoisted upon you you must take it i'm not i just want to be clear i just like to read books and e-readers

00:01:31 ◼   ► i have i have people people all the time send me notes saying hey jason i know you review e-readers

00:01:37 ◼   ► what are you going to read review this giant thing that you use a pen to take notes with and it's like

00:01:42 ◼   ► i don't care i i when i get a an e-reader that has a pen option i don't get it when i get sent a review

00:01:49 ◼   ► unit that includes the pen i don't use the pen i'm not interested i'm not i'm only interested in

00:01:54 ◼   ► basically reading books on e-ink uh readers that's it that's where it goes jason with great love of e-readers

00:02:02 ◼   ► comes great responsibility to listen to people talk about e-ink everything that's i think that's what's

00:02:08 ◼   ► going on yep not interested not interested so would i consider an e-ink monitor no um uh no not only are

00:02:16 ◼   ► they expensive and are their frame rates not great and not only are their color reproductions not great

00:02:21 ◼   ► and their contrast not great but uh this this very credulous overly credulous uh verge article that you

00:02:28 ◼   ► put in our show notes that says oh it's got lighting like on a on a kindle so it'll be fine it's like

00:02:33 ◼   ► you know okay they don't have backlight so what lighting is going on here across 25 inches can

00:02:40 ◼   ► that even reach that's that's a very bright front light i don't really want to have to sit in a room

00:02:47 ◼   ► where the where i'm brightly lit from behind in a way that allows me to see my screen because it's

00:02:54 ◼   ► a reflective screen i don't really know what this is for right like i don't know i'll tell you what

00:03:01 ◼   ► it's for i'll tell you what it's for e-ink made a a panel this big and it's that it's that typical

00:03:07 ◼   ► thing i've seen it my entire career which is some manufacturer makes a thing and then there are

00:03:12 ◼   ► companies who will step up and just put it in a product right and nobody asked the question why

00:03:16 ◼   ► the only reason is because we made it so now we'll see if anyone wants to buy it maybe in the long run

00:03:22 ◼   ► this technology could be used in certain products right the idea that you could have a smartphone that

00:03:27 ◼   ► that was as good as today's smartphones in terms of refresh rate and things and resolution and things

00:03:33 ◼   ► like that but it used much less power and it it didn't have reflection issues because it was actually

00:03:39 ◼   ► most of the time being lit by the lighting around you instead of needing a backlight like okay well and

00:03:45 ◼   ► also like this panel could be used in a bunch of places but i don't know if it's a consumer product

00:03:49 ◼   ► like you could write for signage like in in london now all of the bus stops uh a lot of the bus stops

00:03:56 ◼   ► that i've seen recently the newer ones they have an e-ink display showing you the bus times it's like

00:04:02 ◼   ► that's perfect right great that says let's do it and also you can tap through like i have like physical

00:04:08 ◼   ► buttons that you can tap through to see the schedules it's like that is a perfect use of an e-ink display

00:04:13 ◼   ► it's just sitting there it's not drawing any power until somebody needs it i have i have that terminal

00:04:19 ◼   ► that's on my you know on my microwave right now and then before that i had the other e-ink kind of

00:04:24 ◼   ► experiment but again the point there was more it's an ambient device that has that is an interesting

00:04:29 ◼   ► application yeah um and that's a personal not commercial and it's a hobbyist kind of thing but

00:04:34 ◼   ► like in the end it's not about the the screen it's a thing that's enabled by the screen this just seems

00:04:39 ◼   ► like nonsense to me but um you know i'm i'm sure there are i'm sure there are very specific niches

00:04:46 ◼   ► probably not personal as you said it's probably more commercial where these could be used you know

00:04:51 ◼   ► people always talk about like signs in supermarkets and stuff like that there are lots of uses for this

00:04:55 ◼   ► kind of technology that make it interesting but i just don't i just don't see it i i just i mentioned

00:05:00 ◼   ► i need to mention again the um the overly credulous verge story just because the other part of it that

00:05:06 ◼   ► made me chuckle is the conclusion which is i feel like it's okay i'm not trying to be mean here but

00:05:13 ◼   ► this it's so cliched it's like if you're a gamer photo or video editor or someone uses their desktop

00:05:17 ◼   ► monitor for watching tv and movies the mirror pro color isn't for you well that's true that is

00:05:23 ◼   ► objectively true but if you spend your days editing text writing or crunching numbers and spreadsheets

00:05:27 ◼   ► in a space with plenty of light wow okay an ink monitor might be worth considering particularly

00:05:33 ◼   ► if you find yourself frequently dealing with eye strain this is this is too much it's like this is

00:05:38 ◼   ► this is not the kind of product that is for everybody except this little narrow area for whom it is

00:05:44 ◼   ► inappropriate it really is inappropriate for almost everybody unless you have a very specific need

00:05:50 ◼   ► and the in a space with plenty of light and dealing with eye strain and like yeah yeah i'm sure that

00:05:57 ◼   ► the you know 400 people who actually want this product will find it but i also want to read a quote from

00:06:04 ◼   ► this now um this is just i just find this funny the statistics and then the price so the mirror pro

00:06:10 ◼   ► color uses a 3200 by 1800 e-ink kaleido 3 panel that can only display a limited palette of 4096 colors

00:06:19 ◼   ► its refresh capabilities can't match the best lcd or oled screens but books offers four customizable

00:06:25 ◼   ► display modes balancing image quality and performance is fast enough to watch videos

00:06:30 ◼   ► uh this monitor is 25 inches and it costs 1100 dollars so you know

00:06:38 ◼   ► follow your bliss yeah you know yeah anyway adam sorry we've we've beaten your question to death but

00:06:48 ◼   ► this is good because what adam has provided us and the upgradians with today is the knowledge that jason

00:06:53 ◼   ► likes e-readers he does not like e-ink that is important that is important yeah it's true i like i

00:07:00 ◼   ► like and i like ambient displays which is why i've got like the metric time which is not not an e-ink display

00:07:06 ◼   ► it's like i don't even know what it is it's little teeny tiny leds i think in a yeah in a matrix but

00:07:11 ◼   ► like yeah it it um i'm more into kind of e-readers and ambient uh information than i am like e-ink is a

00:07:19 ◼   ► tech it's an interesting technology but like no i i've never dreamed of having an e-ink monitor and i

00:07:26 ◼   ► don't think anybody should should yeah no don't if you would like to send in a question for us to

00:07:31 ◼   ► answer on a future episode of the show please go to upgradefeedback.com and you can send in your

00:07:37 ◼   ► snow talk question jason it's also where lots of people lots of people

00:07:41 ◼   ► sent in their recommendations for me for a thermostat um to replace my nest i was very

00:07:48 ◼   ► happy i got lots of great advice it seemed pretty split uh between the two companies that i was

00:07:53 ◼   ► expecting hive and tado uh tado edged ahead um so that is the product that i will be upgrading to but

00:08:01 ◼   ► what i did come to realize in doing a little bit more research is i have a third gen nest thermostat which

00:08:08 ◼   ► is not one of the ones that is being kind of like shut off by the app so we have a little bit more

00:08:15 ◼   ► time to make this decision so we'll still be able to use our nest um as we were but this is again the

00:08:22 ◼   ► point kind of still stands to me that we do need to upgrade because google is it there is only a set

00:08:29 ◼   ► amount of time and google's going to kill off our nest too because they have no desire to support products

00:08:34 ◼   ► in europe and a bunch of upgradians wrote him uh saying that like what's good about tado is they

00:08:40 ◼   ► actually have like a whole system and so they also make smart uh radiator valves like i have here at the

00:08:47 ◼   ► studio and so what i will do so our we have downstairs we actually have underfloor heating and then

00:08:54 ◼   ► upstairs it's all controlled by the boiler so we have radiators so the downstairs heating that's on its own

00:09:00 ◼   ► system it's not going to be connected to this at all um because unfortunately the system that we have

00:09:06 ◼   ► this is all installed by the previous owners um they went with a system that doesn't really tie into

00:09:12 ◼   ► any smart home stuff so it's like whatever it's fine it has an app though and so like we can program it

00:09:17 ◼   ► and whatever yeah i mean my my system i can't i can't replace it comes with its own controller and it's

00:09:23 ◼   ► it's very barely smart and i'm using home bridge to connect it and yeah but the upstairs you know

00:09:28 ◼   ► it's like it's two bedrooms an office and a bathroom and we now have very different temperature needs for

00:09:37 ◼   ► those rooms from now going into the future the nursery would need to be warmer than our bedroom for

00:09:42 ◼   ► example um and they also make these uh the radiator valves and it ties into the whole system together i

00:09:49 ◼   ► thought ah okay that's actually something i can do to make things better because at the moment

00:09:52 ◼   ► when we have to turn the heating on to heat up one room we heat up all the rooms which is like not ideal

00:09:59 ◼   ► um and so we'd be able to kind of balance them out a little bit across each other and do what we

00:10:03 ◼   ► need so that this that's what i'm going to do at some point and uh tato they're a german company and

00:10:09 ◼   ► this is what they do so this was actually as well the the um i found out in europe people that have a

00:10:16 ◼   ► first and second gen nest uh google worked to tato to give them 50 off one of the systems to to replace

00:10:22 ◼   ► that was who they they did that's nice thing with so you get a european option i think if you're using

00:10:27 ◼   ► european heating yes absolutely lesson absolutely because google can't be bothered anymore nope they

00:10:34 ◼   ► don't have enough money they're not big enough they're just not powerful or big enough it is sad

00:10:38 ◼   ► really i feel bad stuff hard times hard times over there so obviously we have a huge lawyer up segment

00:10:43 ◼   ► to do later on today as which means you don't really have enough time for a forward roundup but i wanted

00:10:48 ◼   ► to mention one story which is also kind of like yeah just half just a year uh there's no huh uh i

00:10:55 ◼   ► wanted to bring up the fact that the information is reporting that apple is considering splitting their

00:10:59 ◼   ► iphone lineup into two separate releases one in the fall one in the spring mike i i literally texted

00:11:06 ◼   ► you immediately when i saw this story and i was like mike it's coming true your prediction your your

00:11:11 ◼   ► your prediction is finally coming true two separate rollouts this was a prediction that i made in the

00:11:19 ◼   ► draft of the ages in episode 300 for episode 400 so it was i was very ahead of my time on this one

00:11:28 ◼   ► ahead of your time uh but they're considering this for 2026 if they do this they would do fall 26 and

00:11:34 ◼   ► spring 27 and then fall 2026 you would get the iphone would it be 19 pro yeah pro night night right

00:11:44 ◼   ► what are we on now 16 so be 18 18 18 so you'd get the 18 pro the 18 pro max the 18 air and let's say

00:11:53 ◼   ► the 18 fold right whatever they would call that in fall of 2026 if that's what they have and then

00:12:00 ◼   ► the iphone 18 and the iphone let's just call it the 18e would be in spring of 2027 right apple want to do

00:12:08 ◼   ► this for the obvious reason of the logistical work becomes much easier uh if you're not releasing six

00:12:15 ◼   ► phones at once like six distinct phone models at once um but i've i think they should do this for the

00:12:22 ◼   ► reason i've been saying this you do it for a long time uh i think you get it's it's cleaner to spread

00:12:27 ◼   ► it out you get two distinct kind of like uh marketing beats at different points of the year

00:12:33 ◼   ► why have one iphone event when you could have two exactly exactly i mean you know apple over the years

00:12:40 ◼   ► has done stuff like they might release an se or they might release a color of an iphone but no let's

00:12:46 ◼   ► just actually make it that there will be one in say march and there will be one in september and you

00:12:52 ◼   ► just rely on that samsung has done this for ages ages right like for ages this is when i when i when

00:12:59 ◼   ► i saw samsung were doing this over time is what made me think about it it's like they they release

00:13:04 ◼   ► their like expensive big phones and their foldable phones at one point and then they're like flagship

00:13:09 ◼   ► kind of this is the fun that everybody buys at another time like a different time of the year

00:13:15 ◼   ► they actually do the i think they do the more expensive ones at the beginning and then the kind

00:13:20 ◼   ► of more mainstream ones towards the end of the year but like whatever it doesn't matter um and when i was

00:13:25 ◼   ► thinking about this today about like you know should they do this now would it make sense to i kind

00:13:31 ◼   ► of realized they do not do this to any other product line they don't release like all of the max

00:13:36 ◼   ► at once they spread it out a bit because yeah it makes sense to do that because just logistically

00:13:42 ◼   ► marketing wise product development wise there is a sense to kind of stretching this out a little bit

00:13:48 ◼   ► where you can so i think this makes a lot of sense to do especially if there are six devices they won't

00:13:55 ◼   ► be able to talk about them all in one event anymore like i can't and really give them a fair shake

00:14:02 ◼   ► imagine how much easier it is to make iphones if you have separate production ramps so we just saw this

00:14:12 ◼   ► with the 16e but going even further separate production ramp up required separate finalization

00:14:19 ◼   ► all the steps are off a little bit you're using a lot of the same base technology but you don't have

00:14:25 ◼   ► to ship them all at once it is like you said it is like not shipping every m4 mac on day one

00:14:30 ◼   ► because that would be really really hard for lots of reasons for engineering reasons for marketing

00:14:36 ◼   ► reasons for for factory reasons for part reasons there's so many reasons it would be hard so you

00:14:42 ◼   ► spread it out into two you're giving yourself breathing room as a every aspect of your company

00:14:48 ◼   ► you're getting breathing room and like i said i don't think it makes the iphone message weaker in

00:14:51 ◼   ► fact i think it makes it stronger because you get two punches at an iphone event and the iphone event

00:14:56 ◼   ► is by far the most uh watched apple event so if they do two iphone events i think that benefits

00:15:03 ◼   ► them i think if there's a net benefit there uh on marketing plus literally everything else yep

00:15:09 ◼   ► all right let's take our first break now and then we'll get into this this big chunky segment

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00:16:26 ◼   ► this show and all of relay it's time to lawyer up clunk clunk clunk indeed all right so

00:16:35 ◼   ► uh there's some context around this one we're going to get into it and we're going to talk about all of

00:16:41 ◼   ► this stuff but i think that there are some some table there's table setting to be done so last

00:16:46 ◼   ► wednesday uh in the kind of next event in apple's epic five-year legal dispute apple and epic epic five-year

00:16:54 ◼   ► legal dispute uh judge yvonne gizales rogers made a huge ruling over apple's ability to collect purchases

00:17:02 ◼   ► made outside of applications that are on the app store so in 2021 the judge gave an injunction ordered

00:17:10 ◼   ► an injunction that resulted in apple creating the ability for developers to have one text link to an

00:17:16 ◼   ► external page for purchases that contained no tracking information would display the scare screen

00:17:23 ◼   ► to them what did you call those screens so like this app may kill you this app may kill you this app will

00:17:28 ◼   ► kill you right like danger this app could kill you uh that was a long time ago but scare screens is so

00:17:34 ◼   ► perfect it's just perfect after all of that they would still demand 20 of any subsequent purchases

00:17:39 ◼   ► and you as the developer had to do all of the accounting to work that out for a i think it's

00:17:44 ◼   ► a seven-day period of any purchase that could occur even though you couldn't have any tracking on them

00:17:48 ◼   ► epic went back to the judge and argued that this does not meet with what the judge ordered and

00:17:54 ◼   ► effectively results in no change for apple which we all knew was the case the judge subsequently ordered

00:18:00 ◼   ► further hearings these went incredibly poorly for apple and has resulted in a fiery 80 page opinion

00:18:07 ◼   ► that rules that apple can no longer impose any commission or any fee on purchases that consumers

00:18:14 ◼   ► make outside of an app they cannot place any restrictions on how a link or a button looks to

00:18:20 ◼   ► start a purchase via the web from inside an app and they cannot present any screens or dialogues to

00:18:26 ◼   ► users to discourage and leaving out leaving outside of something that says a user is going to a third

00:18:32 ◼   ► party website essentially the result of this injunction is that now from now from last week but it's

00:18:39 ◼   ► happening now a developer can choose to forego apple's in-app purchase system and the 30 fee

00:18:47 ◼   ► completely all they have to do and i say all but all they have to do is the work to enable a web-based

00:18:53 ◼   ► purchasing system which frankly most large companies have anyway because they don't exist in just one

00:18:59 ◼   ► place but you could be any developer and have this set up with accounts and such and are happy with their

00:19:05 ◼   ► customer leaving app to complete it so me and jason make an app uh we want to charge say like so we

00:19:11 ◼   ► made an app for upgrade plus and we want to charge for it in the previous system even if we collected

00:19:17 ◼   ► payments outside on our own it was fine if we had an ios app we would have to do this via in-app purchase

00:19:23 ◼   ► to be on the app store that no longer needs to be there um and you can't do the purchase inside of the app

00:19:30 ◼   ► but you can have a button that just takes you to a website and you complete the purchase and you're

00:19:36 ◼   ► all done yeah and those urls can't the you you didn't mention it in your bulleted list but the urls

00:19:42 ◼   ► that apple said okay we're gonna we'll let you do it you can link to one url and it has to be static

00:19:48 ◼   ► which is the worst right because what you want to do as a developer is link to the particular

00:19:53 ◼   ► membership plan that they're on or the particular item that they want to purchase or whatever

00:19:59 ◼   ► and none of that was allowed before and in this ruling the judge said you know you can let them

00:20:05 ◼   ► link to whatever they want yep this is pretty huge this is yeah this is pretty huge and just to be clear

00:20:13 ◼   ► um the judge the judge's take here is i gave you apple the opportunity to implement

00:20:23 ◼   ► my ruling in order to be non you know not be anti-competitive anymore that was her ruling was

00:20:32 ◼   ► yeah was and so and so i don't want to hear it i this is an important point i don't want to hear it

00:20:39 ◼   ► from the people who say oh it's so outrageous judges and regulators and the legal system are all making

00:20:46 ◼   ► free enterprise follow their rules and build products that that that you know that they should

00:20:53 ◼   ► be building and the others they should the judges shouldn't be building it that's outrageous the judge

00:20:59 ◼   ► here let apple implement something that was in line with the with the rules she said this is anti-competitive

00:21:08 ◼   ► here are the reasons why you need to make it competitive she didn't say let me design a system

00:21:14 ◼   ► for you this was three years ago and then it went through the the the court of appeals the circuit court

00:21:21 ◼   ► uh and then it went up to the supreme court and then and and in neither case did those courts say

00:21:28 ◼   ► apple is right about this so they they i mean there were like little details that she gets to into the

00:21:33 ◼   ► ruling but basically all the way through the supreme court they said yep and the day after the supreme

00:21:40 ◼   ► court denied cert which is basically said we're not gonna even take this case right like no it's fine

00:21:45 ◼   ► this is the ruling is fine uh apple had to implement this thing and this is the important point which is

00:21:54 ◼   ► she gave apple the ball and all she said was you design your own system here is what i'm looking for

00:22:01 ◼   ► in terms of being uh not being anti-competitive and and what we know because she details it because there

00:22:08 ◼   ► was more discovery of memos at apple is apple was well aware of what was being asked of them

00:22:15 ◼   ► apple had internal debates about what they wanted to do to implement her ruling

00:22:23 ◼   ► many senior apple executives said this means we need to do things like allow people to link out and you

00:22:34 ◼   ► know and not have an enormous commission and all of these things and phil schiller in particular and

00:22:40 ◼   ► we'll probably get to that and and they were overruled by other executives inside apple who said no what we

00:22:47 ◼   ► need to do is maximize our revenue in a way and our anti-competitive behavior in a way that has a fig leaf

00:22:56 ◼   ► it looks like it would be competitive but all of the details will be poisoned they decided to go that path

00:23:02 ◼   ► now the way the legal system works is it has come back to the judge in the case because epica said

00:23:09 ◼   ► they're not doing it it's still anti-competitive they the thing that they built 27 of credit card

00:23:17 ◼   ► purchases and a seven seven day tax on any further transactions in the store from somebody coming from

00:23:25 ◼   ► the app this is not what you asked them to do and the judge said it's absolutely not what i asked them

00:23:33 ◼   ► to do and the deal is i gave you a chance to build what i wanted you refuse to build it yep so now you don't

00:23:42 ◼   ► get to build anything and this is this she says this is not a negotiation this is not a second try i gave you

00:23:50 ◼   ► your try you chose to refuse to honor what i ordered you to do so now you don't get to build anything you

00:23:59 ◼   ► just have to turn it all off and that is what we've we've been talking about for a while now that is the

00:24:05 ◼   ► consequence of this incrementalism this malicious compliance is in this case the judge can say i you

00:24:15 ◼   ► only get one swing at it you squandered that swing at it by trying by conspiring to and cooking up fake

00:24:24 ◼   ► reasons and she's got the the the details in order to in order to maintain your your anti-competitive

00:24:31 ◼   ► behavior and so i'm just blasting all your rules away and so as of the next day all of those rules didn't go

00:24:38 ◼   ► to well what about 10 or what about 15 no it's zero and what about the urls no you just can and what

00:24:45 ◼   ► about the scare sheet no it's gone it's not like it's gone beyond a small thing because the i mean this

00:24:53 ◼   ► is the truth she gave apple a chance to comply and actually behave in a in a way of apple's choosing that

00:25:01 ◼   ► fulfilled her desire and apple refused and so they are now reaping what they sow or sowing what they

00:25:09 ◼   ► reap i don't know both there's a lot of reaping and a lot of so going on this and i think as well i think

00:25:14 ◼   ► what's important to note that i mean i don't know exactly i don't know exactly how these things go um but

00:25:21 ◼   ► there is a scenario where you know they did it they did it in a way that the judge wasn't happy and we kind

00:25:29 ◼   ► of go back around again but the difference here is she found the evidence of them trying to get around

00:25:35 ◼   ► it like that's that's the problem here it's not that like you know apple took this and they misunderstood

00:25:40 ◼   ► it and they acted in good faith and and this is what they implemented no like i'll give a quote from the

00:25:47 ◼   ► from the uh the opinion apple despite knowing its obligations there under thwarted the injunction's

00:25:52 ◼   ► goals and continued its anti-competitive conduct solely to maintain its revenue stream remarkably apple

00:25:58 ◼   ► believed that this court would not see through its obvious cover-up so for example the 27 yeah

00:26:04 ◼   ► it is exactly what we thought it was which is a bunch of apple executives said well

00:26:09 ◼   ► it's a little like arrested development like what what could a banana cost michael a hundred dollars

00:26:14 ◼   ► um it's like well what is credit card transaction three percent okay we'll just make a 27 instead of 30

00:26:23 ◼   ► and they knew what they were doing they knew that what they were doing was poisoning the entire concept

00:26:28 ◼   ► because because it was not going to save anybody any money to compete with apple's purchases and

00:26:34 ◼   ► therefore you should just stay with apple and then what happens is an app developer came to them and said

00:26:41 ◼   ► i think it was a dating app and said it's it's like it's not even three percent it's like more than four

00:26:48 ◼   ► percent so we're going to lose money if we go outside the store and apple's internal reaction

00:26:53 ◼   ► was good good it's even it's working even better than we thought but what they said to the judge was

00:27:00 ◼   ► oh no 27 is totally a scientific number that we arrived at by scientific means it just we calculate

00:27:07 ◼   ► up all our expenses and the cost of our apis and like 27 is what we have to we just have to charge that

00:27:14 ◼   ► but she's got their receipts it it that's not what it is it's they're doing i mean mike i don't know if

00:27:20 ◼   ► it struck you but as i read the entire judgment which i did i just kept shaking my head and thinking

00:27:27 ◼   ► it's exactly what we thought it was yeah exactly we knew all of this but but it's worse to see it in

00:27:34 ◼   ► black and white like it's worse that way it it is and if you're a judge you know we we can look back

00:27:40 ◼   ► with our you know with our popcorn and be like oh i knew it i knew those guys just made up that number

00:27:46 ◼   ► but if you're the judge and you're saying you need to do this thing and they're like no we don't want

00:27:52 ◼   ► to we're gonna make we're gonna i mean this is why uh she forwarded apple and one of their executives

00:27:58 ◼   ► for criminal contempt yes like it's hard not to say that apple is absolutely in contempt of this court

00:28:04 ◼   ► acting in contempt of court because they literally made a mockery of her instructions which were to

00:28:11 ◼   ► eliminate anti-competitive behavior by creating a new anti-competitive system and so is it any wonder

00:28:18 ◼   ► that at the end of the day the judge said forget about it it was it was more anti-competitive because

00:28:24 ◼   ► like in a scenario based on the fact that somebody would have to then incur all the additional costs of

00:28:29 ◼   ► the accounting like if i as a customer went to this link right and like signed up for an account but

00:28:36 ◼   ► didn't pay if i then went back on the web within three days apple wants that money then that's not how

00:28:42 ◼   ► it works in the app store like if i go to you know look at netflix and i'm like no i don't worry

00:28:49 ◼   ► about it and then three days later go you know what i do want it and go to the web browser and sign up

00:28:54 ◼   ► netflix don't have to give apple any money right and just to be clear because i'm seeing some

00:28:58 ◼   ► comments about um well apple got three years where they got to rake in more money and that's like ha

00:29:03 ◼   ► ha look what they did okay but here's the thing apple was given an opportunity to build a reasonable

00:29:11 ◼   ► proposal yes that would include more language that would scare you that would include them taking a

00:29:19 ◼   ► percentage of uh transactions outside their store maybe not the seven day auditing whatever but maybe

00:29:27 ◼   ► ten percent or something and by foregoing that they got there two or three years in the sun or whatever

00:29:34 ◼   ► but the judge now is saying you can take nothing yeah ever there was there was so was that a good move

00:29:39 ◼   ► in which you could have ten percent five percent three percent i mean this probably wouldn't work but

00:29:45 ◼   ► a world where you could be like it has to be apple pay right so you still get a little bit or like

00:29:49 ◼   ► whatever that wouldn't you know you get my point there are like lots of different things you could

00:29:52 ◼   ► have tried but now you have zero percent of nothing so you've got right all all you had to do was build

00:29:59 ◼   ► a system that was arguably competitive right so if if apple said and and it's not like i know people

00:30:06 ◼   ► have said oh well what if they did you know five percent they would feel pressure to compete it's like

00:30:10 ◼   ► yeah but they got the home field advantage they've got it's so easy you've already got your credit card at

00:30:14 ◼   ► apple all of that they could even make make it clear in their rules that the the outside link and

00:30:21 ◼   ► the in-app purchase link had to be on the same screen right they could they could make a bunch of rules

00:30:26 ◼   ► like that and then they could say you know we're gonna take ten percent or whatever and then and then

00:30:34 ◼   ► epic might complain and other companies might complain but what apple would i think apple would have

00:30:39 ◼   ► a strong argument to say look our system is really easy it's already there it's convenient it's it's

00:30:43 ◼   ► secure people trust apple for that you pay ten percent but if you don't you you're you're doing

00:30:49 ◼   ► what again we've we just heard you're you're doing what four percent five percent so and we're giving

00:30:54 ◼   ► the customer the choice right they said we're giving customers the choice and you can choose yeah

00:30:58 ◼   ► they could do 10 they could do 15 they could do 20 i mean you got to see what the judge might say

00:31:03 ◼   ► about that but like all you want to do is create an area where there's a competitive opportunity

00:31:09 ◼   ► to not use what apple forces you and see if that competitive system is more of a benefit and then

00:31:16 ◼   ► because what judge uh what the judge in this case judge rogers or guns gonzalez rogers said is

00:31:23 ◼   ► competitive make it competitive she did not say apple can't compete she said make it competitive but

00:31:32 ◼   ► apple didn't choose to build a competitive framework they chose a non-competitive framework and again

00:31:38 ◼   ► if i were her i would be furious and she's furious and i and we're not lawyers i know that ben thompson

00:31:46 ◼   ► pointed out that there's there's some you know questions about like is this takings and all of that

00:31:50 ◼   ► although i feel like apple stands apple standing is greatly decreased because they are acting in

00:31:57 ◼   ► contempt right like they got their shot at it um so it strikes me that this is going to be a rough one

00:32:03 ◼   ► for them it's not impossible they said they're going to appeal but you know even tim cook the appeal was

00:32:08 ◼   ► filed this morning yeah and and tim cook you know basically said but you never know what might happen

00:32:14 ◼   ► and and it's in effect now that's the other thing is that this first round happened with appeals but i

00:32:19 ◼   ► believe this is all just in effect they had to do it the next day because we're at the end of that

00:32:24 ◼   ► process now i mean i i would be really surprised if their appeal worked like they might be able to gain

00:32:32 ◼   ► some ground back i don't know but there is also this thing that like i mean even as i'm saying it i'm

00:32:39 ◼   ► like no but like it does it feel like the genie's out of the bottle on this one but no apple doesn't care

00:32:43 ◼   ► they would just go back we know this like we can see this here's what i'll say just a quick aside

00:32:49 ◼   ► actually about saying about seeing this i can't believe that all of this information was just written

00:32:53 ◼   ► down it is kind of amazing right haven't these executives learned by now but here's the thing i

00:32:58 ◼   ► don't know it may be that they were ordered to keep notes of the meetings involving compliance with

00:33:03 ◼   ► the orders right yeah yes i mean it's it's super damning and and you're in a you're you're literally in

00:33:11 ◼   ► meetings where you're saying how do we scheme to get around the judge and people and and people are

00:33:16 ◼   ► taking notes like what are you what are you doing yeah i just feel like at this point it it surprises

00:33:24 ◼   ► me i mean maybe they decided this was the route they wanted to go down because you know google lost its

00:33:29 ◼   ► case like lost its case and continues to lose lots of its cases because they they kind of instituted

00:33:36 ◼   ► this system of like let's not write this down and that actually came back to bite them big time so maybe

00:33:41 ◼   ► is the right call to you know actually the right call is just not to it's just don't do anything

00:33:48 ◼   ► anti-competitive like maybe that's just the right call just be competitive so speaking of that

00:33:56 ◼   ► let's talk about phil shiller yeah because phil shiller comes off pretty well in this document

00:34:01 ◼   ► not like a hundred percent like but but here's the point phil shiller first off did the work and

00:34:09 ◼   ► there's there's a very strong indication from the judge that she is not impressed by other apple

00:34:14 ◼   ► executives who have lots of opinions about her ruling but aren't but did not read it and we're not at the

00:34:20 ◼   ► trial yeah uh whereas phil shiller was at the trial and clearly she says read every word of the judgment

00:34:28 ◼   ► and and expresses awareness of what is being asked and so when all of these these jokers are saying oh

00:34:37 ◼   ► well let's just do 27 and let's avoid this and let's avoid that phil shiller rolls in and and and phil

00:34:43 ◼   ► shiller he's a true believer he's a lifer he is not some malcontent uh revolutionary inside apple he

00:34:52 ◼   ► is a made man at apple and he says this outside commission thing we can't do it we can't do it

00:35:00 ◼   ► it's it's a bad idea the judge is is clear about what she wants here we can't do it and luca maestri and

00:35:09 ◼   ► the finance team basically says to tim cook don't listen to phil just do this thing and then tim

00:35:17 ◼   ► cook says i'm going with what luca says and not the guy who was our guy at the trial who knows every

00:35:23 ◼   ► detail of it who is phil shiller apple fellow and very senior person at apple still phil shiller i'm

00:35:29 ◼   ► going to go with the money man and as the judge wrote cook chose poorly so i was reading as a john

00:35:39 ◼   ► voye's at max story used to be a lawyer right and so like you know he wrote a good piece about this

00:35:44 ◼   ► they also spoke about on app stories i really enjoyed it and something i didn't understand that john

00:35:49 ◼   ► explained is like typically a company a large company they will appoint an executive specifically to go and

00:35:57 ◼   ► listen like yes that's the point you're going and you're listening that person was phil shiller so

00:36:03 ◼   ► he was appointed as the person to go listen and then they didn't listen to him so why why why even

00:36:10 ◼   ► have him like how much money did did that cost to send phil and like you know in his time like time for

00:36:17 ◼   ► money for his time right which must be very expensive to have him go and sit in that courtroom and listen

00:36:23 ◼   ► yeah for hours and hours and hours and hours right and then he was in this situation he's like we

00:36:28 ◼   ► shouldn't do this again like someone who has effectively before now ran the app store for a decade who has

00:36:37 ◼   ► sat there and not wanted to change these fees right and has done everything possible over this last 10

00:36:44 ◼   ► years or however long to hold on to that 30 percent he is the person in theory would least be likely to

00:36:53 ◼   ► say let's get rid of this because he could have gotten rid of it at any point before now and he's like we

00:36:58 ◼   ► shouldn't do this because he knows it's now a question of following a judge's orders it's the law yes we are

00:37:08 ◼   ► saying and and i mean i'm gonna boil it down there's a meeting where the guy who went to the trial says

00:37:14 ◼   ► the law says we have to do x and then off in the corner the money men say oh let's not do x let's

00:37:23 ◼   ► let's concoct a scheme to avoid x let's break the law yes and and phil schiller says whoa whoa whoa whoa

00:37:33 ◼   ► i'm as true a believer as anyone i want us to get our money i believed in the 30 percent i i believe

00:37:39 ◼   ► it's still the 15 for the small developers we did that but the 30 it's our bread and butter we have all

00:37:45 ◼   ► this but we can't break the law this is the law so we need to find the right approach that benefits us

00:37:53 ◼   ► the most that follows the law and the money men are like i think we should break the law i think we should

00:37:59 ◼   ► concoct a scheme to break the law instead and tim cook said let's do that let's break the law

00:38:05 ◼   ► let's ignore the judge's wish let's ignore the guy we sent our expert phil who's been around longer

00:38:11 ◼   ► than anybody at this point in the senior ranks let's ignore him who's saying you need to follow the law

00:38:17 ◼   ► and let's break the law and that and that's why the judge says that was a bad decision by tim cook that

00:38:23 ◼   ► that was a that was a a bad decision you are defying a judge because and i think this is the way we have

00:38:30 ◼   ► to say this apple executives at least some of them not phil schiller apple executives think they're above

00:38:38 ◼   ► the law that's it that's the answer they think they're above the law and here's the thing that kills me

00:38:48 ◼   ► it's everything we thought they thought yeah they've behaved in the last five or ten years

00:38:53 ◼   ► like they're above the law that they have contempt for everyone including judges including regulators

00:39:01 ◼   ► and including their own third-party developers and this ruling just says yep that they are who you thought

00:39:09 ◼   ► they were and like saying about breaking the law it is now being considered that one of those people

00:39:15 ◼   ► actually also lied in court right like that they lied in court and it was a simple i mean it's very

00:39:22 ◼   ► simple like the lie was you know they the judge that's how they get you yeah asked him like you know

00:39:27 ◼   ► did you have any idea about the about the you know when did you come up with this idea of 27 and they

00:39:33 ◼   ► set a date or whatever it's like you didn't have it before then it's like nope this is the first time

00:39:37 ◼   ► time we ever spoken about it but this meeting that jason's talking about happened months before

00:39:41 ◼   ► long chain of events involving them concocting the scheme and then reverse engineering in a way you

00:39:47 ◼   ► just couldn't couldn't get that wrong like you just because you would also in theory be prepared right

00:39:53 ◼   ► like you would also have your meeting notes and and so this is why this i think the whole thing and

00:39:59 ◼   ► especially this is now being kicked up to the district attorney for north car at north north north

00:40:04 ◼   ► northern california the u.s attorney for because for criminal oh yeah yeah so it's the it's the u.s

00:40:09 ◼   ► attorney in san francisco it got kicked there to for for criminal contempt which is they'll the that

00:40:15 ◼   ► attorney will decide if they want to pursue that or not and given the current uh state of the justice

00:40:20 ◼   ► department and the trump administration and all that who knows whether they they want to uh you know

00:40:24 ◼   ► any corporate crime is worth prosecuting to them or not i don't know i'm sure that donald trump

00:40:30 ◼   ► would get a call from tim cook if they tried to prosecute one of their guys but um but still i

00:40:36 ◼   ► mean the point is made that they've been referred to the u.s attorney because the judge feels that

00:40:42 ◼   ► they've committed criminal contempt in a in a case that's not great that's not great i should also say

00:40:47 ◼   ► because i saw there was a particularly uh disturbing piece last week on a kind of a penny ante apple website

00:40:54 ◼   ► that is embarrassing and is even more embarrassing now and i'm not going to even mention it where they

00:41:00 ◼   ► said something derogatory about the judge in this case they have also in the past said that about the

00:41:06 ◼   ► regulator in the eu it's uh it's sexist but i just want to point out how do you get that job

00:41:14 ◼   ► you got to get nominated by the president of the united states and confirmed by the senate

00:41:19 ◼   ► and this judge was concerned confirmed by the senate like like 80 to 15 or something like this is not a

00:41:29 ◼   ► rando judge that rolled in off the street this is a a federal district court judge doing all of this

00:41:40 ◼   ► so i i i think it shows you what dire straits were in that a bunch of people who are who are

00:41:46 ◼   ► reflexive apple boosters and propagandists have to resort to insulting a distinguished judge because

00:41:56 ◼   ► they got nothing left they got nothing left i don't understand like obviously i love apple products and i

00:42:04 ◼   ► love in like the idea of the company and have done for 20 years or whatever um but most of all like i

00:42:12 ◼   ► care about the products but like i just i don't understand how at this point you feel the need to defend them

00:42:18 ◼   ► in this like why do you anyone why would anyone feel the need to defend apple in this scenario

00:42:26 ◼   ► beggars belief to me anytime anybody wants to come to me and say oh you shouldn't say those things

00:42:32 ◼   ► about apple they're really just making a good decision because of this and that i'm just going

00:42:36 ◼   ► to point to phil shiller do you think phil shiller is against apple phil shiller is i'm going to say it

00:42:42 ◼   ► again a true believer and a lifer an apple lifer and a true believer there is nobody more in tune with

00:42:51 ◼   ► apple and also with steve jobs and what he believed about apple than phil shiller number one guy and he's

00:42:58 ◼   ► waving his hands saying no no no no no no no don't do this and they did it anyway so like i don't want

00:43:05 ◼   ► to hear about it phil shiller was right don't break don't do crimes okay it's not hard it's not hard

00:43:13 ◼   ► and they went the other way let's talk about the developer response um as i expected this is a big

00:43:21 ◼   ► topic so do developer response and then then we'll get into what i'm labeling as the further ramifications

00:43:27 ◼   ► the aftermath for the aftermath of this uh i want to read a little bit from underscore david smith who

00:43:34 ◼   ► posted on uh mastodon about this and i think the underscore is so perfect because like in even like

00:43:40 ◼   ► even in private conversations underscore says to me the same stuff that he says here which is like

00:43:47 ◼   ► i am very happy to and have been very happy to give apple the you know to be in the apple ecosystem

00:43:55 ◼   ► to play by the rules like it doesn't bother him right but i want to read this thing from him on mastodon

00:44:01 ◼   ► here saying that reading this it is clear that the highest levels we are viewed developers we are viewed

00:44:07 ◼   ► as a resource to be extracted from not a customer to be served it feels like apple got turned around here

00:44:13 ◼   ► and stopped trying to grow satisfaction with developers because you know he's saying that

00:44:19 ◼   ► like and i'll read a little bit more to kind of put a bit more context his words over the last 17 years

00:44:24 ◼   ► i paid apple an eye-watering large sum of money for the services they provide me and i don't begrudge

00:44:28 ◼   ► them at all like because someone like underscore the life that he has is based upon the fact that apple gave

00:44:35 ◼   ► the tools that they gave right but i think that there has been um a hopeful what it was originally

00:44:44 ◼   ► an implicit understanding and a hopeful understanding as time has gone on that no matter what apple do

00:44:50 ◼   ► at their core they do still value the developer but it feels like at this point they have gotten

00:44:58 ◼   ► far enough away from that that it doesn't feel it doesn't feel like that anymore as he says they got

00:45:05 ◼   ► turned around and stopped trying to grow satisfaction with developers yeah it is um i think the i think

00:45:14 ◼   ► it's broader than developers too because there's a tendency for people to sort of say well boohoo developers

00:45:18 ◼   ► right like you chose this path and whatever and i think that's wrong but i will also say

00:45:23 ◼   ► hurts consumers yes fundamentally it's a consumer harm because we're not saying we're really not saying you

00:45:32 ◼   ► know what we need is apple to take the 30 away so that uh they can come in with alternate payments at four

00:45:40 ◼   ► or five percent six percent whatever their processing fees are and then the developers just take all the money

00:45:46 ◼   ► away that could happen but the other argument is that it makes more price competition because

00:45:54 ◼   ► you've eliminated an enormous amount of overhead and that you will now have price competition

00:46:00 ◼   ► where they could charge less maybe not all that less and they are more productive you could also say that

00:46:07 ◼   ► it makes it easier for developers to be successful at the app store but i i do think that there is a

00:46:14 ◼   ► fundamental kind of i keep using this word contempt that that parts of apple feel and i also want to

00:46:20 ◼   ► be clear i know people in the developer relations group they really there are parts of apple that

00:46:25 ◼   ► really do love and care about developers and want to do right by developers and i'm going to return now

00:46:31 ◼   ► to that image of phil schiller in a meeting saying we need to follow the law and i'm going to continue to

00:46:36 ◼   ► to call them the money men in the corner lucca maestri and his cadre of financial uh group

00:46:44 ◼   ► people who said no and why did they do that because the organization chose

00:46:58 ◼   ► money over everything else and we can talk about this more in the aftermath but like

00:47:03 ◼   ► it's not just about the money it's not and and an effective ceo needs to balance

00:47:09 ◼   ► a lot of different aspects including the money but not limited to the money and this is a case where

00:47:15 ◼   ► you know there's a shiny object out there shiny gold

00:47:22 ◼   ► and the judge says don't take that you're like well what if i do a look over there and i take it

00:47:28 ◼   ► like you just can't it's it's it's the marshmallow experiment on a except for cfos

00:47:34 ◼   ► don't take this marshmallow like nope they they took the marshmallow expensive marshmallow

00:47:40 ◼   ► so very the it's already started right so the the rules had to be changed immediately and they were

00:47:49 ◼   ► basically as immediately as they could be changed and you're already seeing a couple of key players

00:47:55 ◼   ► maybe the most aggrieved ready to go so patreon right out of the gate so this will allow again if

00:48:04 ◼   ► you're a caution mind back a few months uh apple put its uh uh thumb on patreon and insisted that patreon

00:48:13 ◼   ► take a give apple 30 of any subscription that was signed up for in the app and also demanded that

00:48:21 ◼   ► everybody had to have the ability to sign up in the app right so it wasn't even like a an individual

00:48:26 ◼   ► creator could choose whether or not someone could sign up in the patreon app it was like that one-two

00:48:30 ◼   ► punch well they're now not going to do this again so they've gone back on it again which is great

00:48:35 ◼   ► so creators will now be able to be in the patreon app and accept payments from the ios app by going

00:48:41 ◼   ► outside right so that's how it's working so it's the same for everything you select subscribe in the

00:48:46 ◼   ► app you'll tap it you'll go out to a website something i don't know but i think i know the

00:48:50 ◼   ► answer to is it doesn't you can't do this in safari view controller but it just it opens a website i

00:48:56 ◼   ► i don't know the answer to that question um i would like to well i would i would love it if

00:49:01 ◼   ► it could just open a safari view controller window right within the apps you know actually even being

00:49:06 ◼   ► kicked out to another app but ultimately i don't really think it matters i don't think customers will

00:49:10 ◼   ► care um so this will this now means that apple will no longer be forcing themselves into the

00:49:18 ◼   ► process and taking money from creators which i think is fantastic i'm so happy about this

00:49:24 ◼   ► um spotify they were they've been ready to go for like four years

00:49:29 ◼   ► and it's now shipping so this one's in the store like federico had some screenshots like you do it

00:49:36 ◼   ► right you press a button it's like an actual button unbelievably and it takes you out to it opens safari

00:49:43 ◼   ► so i think that might be the route it has to do because i'm sure spotify yes push any line they

00:49:48 ◼   ► could push yeah no you have to go out to safari right um although just come on but anyway

00:49:54 ◼   ► um i'll take what i can get at this point or by the way not me i won't take anything because

00:49:59 ◼   ► this is just in the us which i'll just quick diversion come on apple like i mean i know you

00:50:06 ◼   ► won't but just like give it up just give it up like you've just i won't step into the ramifications

00:50:13 ◼   ► point yeah we'll get there in a minute uh stripe has already published a huge set of documentation to

00:50:18 ◼   ► help developers implement payment processing of their own and epic epic have said that they want

00:50:24 ◼   ► to bring fortnite back there's been a lot of question about if they can can or cannot do that

00:50:31 ◼   ► i don't think that epic would say that unless they actually had a developer account like epic have

00:50:37 ◼   ► developer accounts outside of america um because otherwise they couldn't publish the epic game store in

00:50:45 ◼   ► europe yeah but that's because they were they were apple was forced to allow that and i don't see any sign

00:50:51 ◼   ► that that the judge in this case has forced apple to allow epic to right come back to the store in the

00:50:57 ◼   ► u.s after violating the epic says a lot of things wait but we also don't know that apple haven't said

00:51:03 ◼   ► yes you can have your account back like we don't know the answer to that like we'll have to wait and

00:51:07 ◼   ► see you know like no one's saying anything other than epic is saying we're coming back apple hasn't

00:51:13 ◼   ► said epic's not coming back so well there's some bad there's some bad story news stories that got

00:51:17 ◼   ► published that said fortnite's coming back to the app store and it's like no epic said fortnite's

00:51:21 ◼   ► coming back to the app store in the u.s we'll see but they haven't made some other stuff so they have

00:51:27 ◼   ► announced that the epic game store will come again they're making lots of announcements all we can say

00:51:32 ◼   ► is epic have said that the epic game store will be available and it will offer game developers payment

00:51:38 ◼   ► processing at no cost for the first one million dollars of revenue then it is their usual 88 to

00:51:45 ◼   ► 12 percent split for being on their store and using their infrastructure and they're also working on

00:51:51 ◼   ► something they're calling web shops for developers of non-games that will be hosted by the epic game

00:51:56 ◼   ► store so if you wanted to sell digital content or something you could epic will give you the tools to

00:52:03 ◼   ► set up a store that you know you you have all the links and your customer customer will click

00:52:07 ◼   ► it it will take them to the to the site that you know take them to the web they'll have your epic

00:52:11 ◼   ► store there they have said they haven't published it but be better rates than apple they will handle

00:52:16 ◼   ► the infrastructure and customers get kind of credit that they can then use in the epic game store for

00:52:22 ◼   ► any purchase that they make on an epic web shop so my point is this is a few of the many things that's

00:52:29 ◼   ► going to happen you know revenue cat i don't know if they're doing anything yet but you know they're going

00:52:33 ◼   ► to have stuff like every and there will also be whole new companies that are created sure to facilitate

00:52:40 ◼   ► this stuff but you're going to see i think a lot of a lot of success from stripe and and a lot of these

00:52:45 ◼   ► developers are also already using payment processing for things that happen outside so to build in a new

00:52:51 ◼   ► flow that just takes people from the app to their existing outside payment processing same makes sense

00:52:56 ◼   ► makes sense all of this though it's messy and ugly for customers so like all major companies now are

00:53:04 ◼   ► going to implement their own systems and they're going to be forcing you out to pay because you'd be

00:53:07 ◼   ► bananas not to if you're disney if you're netflix if you're amazon anyone everyone why would you give

00:53:15 ◼   ► apple 30 why would you do that if you don't have to 30 is a lot of money even the 15 that some

00:53:22 ◼   ► developers get under certain circumstances is a lot of money right that you're not going to make your

00:53:28 ◼   ► service cheaper but then you get 15 more of it like why would you not do that and the problem is now

00:53:34 ◼   ► customers are going to be thrown left and right to be signing up for accounts all over the place

00:53:39 ◼   ► this is the exact thing that apple was saying that they were trying to avoid right like they're talking

00:53:44 ◼   ► about consumer privacy and stuff which uh judge gonzalez rogers said was a lie

00:53:50 ◼   ► like right there's something along those lines of like you just you you hide behind this which again

00:53:54 ◼   ► is a thing that we've all felt i think gonzalez rogers might be an upgrade listener if you're out there

00:53:59 ◼   ► judge we appreciate you but like if apple chose to be a partner to either the developers or the legal

00:54:09 ◼   ► system not a gatekeeper they could have kept the experience at least for their customers being good because of

00:54:18 ◼   ► the experience is going to be worse now than it was before because as a customer your experience

00:54:25 ◼   ► of signing up for stuff in the apple ecosystem having all your subscriptions available in the app store

00:54:32 ◼   ► one click cancellation all of this stuff share purchase sharing all of these incredible benefits that you get

00:54:38 ◼   ► as a customer amazing but they're going to be gone now you're not going to have these because no one's going to

00:54:44 ◼   ► use this anymore even fewer people than before so if they would have actually just prioritized the customer experience

00:54:51 ◼   ► the experience of their development partners everyone could have been better off cut all customers could have been better off

00:54:57 ◼   ► apple could have been better off because they could have gotten something out of this

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00:56:57 ◼   ► so

00:57:00 ◼   ► i was saying you know i'm i'm frustrated this is us only honestly because i think

00:57:08 ◼   ► it'd be great if everybody didn't have to keep

00:57:11 ◼   ► paying this developers customers because you know i know that there are things that i pay more money for

00:57:16 ◼   ► because i choose to do them in the apple ecosystem than if i would have just got signed up

00:57:20 ◼   ► on the developers website

00:57:21 ◼   ► so i wonder

00:57:24 ◼   ► look at europe

00:57:26 ◼   ► and the dma

00:57:27 ◼   ► like are they just going to look at this and be like oh you know what actually that's

00:57:30 ◼   ► that's what we wanted

00:57:32 ◼   ► like what we wanted

00:57:33 ◼   ► was more competition

00:57:35 ◼   ► what we wanted

00:57:36 ◼   ► was

00:57:37 ◼   ► our developers to make more money

00:57:39 ◼   ► we don't

00:57:41 ◼   ► really care about these other app stores anymore

00:57:43 ◼   ► the cut is the biggest problem

00:57:45 ◼   ► it's always been the biggest problem

00:57:46 ◼   ► we'll take that

00:57:47 ◼   ► similarly like other antitrust lawsuits

00:57:50 ◼   ► right

00:57:51 ◼   ► if you kind of tie these things together

00:57:53 ◼   ► like i mean

00:57:54 ◼   ► apple still got that outstanding case of the department of justice

00:57:57 ◼   ► we now know

00:57:59 ◼   ► if you look hard enough

00:58:00 ◼   ► there's a ton of stuff available in discovery

00:58:02 ◼   ► there was so much damning evidence

00:58:04 ◼   ► that seemed somewhat readily available to judge yvonne gonzalez

00:58:08 ◼   ► rogers

00:58:09 ◼   ► and so

00:58:09 ◼   ► is there more of that sitting in there

00:58:12 ◼   ► i've got to assume

00:58:13 ◼   ► yeah

00:58:14 ◼   ► like especially in the slack

00:58:16 ◼   ► which

00:58:16 ◼   ► i think

00:58:18 ◼   ► we'll get to some of this again in a minute

00:58:19 ◼   ► but like a lot of the slack messages

00:58:21 ◼   ► is by designers

00:58:23 ◼   ► and

00:58:23 ◼   ► engineers

00:58:24 ◼   ► people who don't

00:58:26 ◼   ► care

00:58:27 ◼   ► at the same level

00:58:28 ◼   ► that the

00:58:29 ◼   ► the c-suite would

00:58:30 ◼   ► about being

00:58:30 ◼   ► about being careful

00:58:32 ◼   ► about what they're saying

00:58:33 ◼   ► you know

00:58:34 ◼   ► so like they're just

00:58:34 ◼   ► doing what they've been told to do

00:58:36 ◼   ► or doing what has been

00:58:37 ◼   ► loosely instructed to them

00:58:39 ◼   ► and they're just talking about it

00:58:40 ◼   ► but all of that stuff is available

00:58:41 ◼   ► under subpoena

00:58:43 ◼   ► so like

00:58:45 ◼   ► is this

00:58:46 ◼   ► if you're

00:58:46 ◼   ► you know

00:58:46 ◼   ► if you're a

00:58:47 ◼   ► if you're a lawmaker

00:58:49 ◼   ► you're now being like

00:58:50 ◼   ► great

00:58:51 ◼   ► it's in there

00:58:52 ◼   ► we know we can get it

00:58:53 ◼   ► i don't know

00:58:54 ◼   ► i don't know

00:58:55 ◼   ► and then you think about

00:58:57 ◼   ► games

00:58:59 ◼   ► right

00:58:59 ◼   ► i mean

00:59:00 ◼   ► games is kind of the big

00:59:01 ◼   ► thing here

00:59:03 ◼   ► this is what makes up

00:59:04 ◼   ► the majority of that

00:59:05 ◼   ► services revenue

00:59:07 ◼   ► right

00:59:07 ◼   ► is the

00:59:07 ◼   ► is the assumption

00:59:08 ◼   ► it's

00:59:09 ◼   ► it's

00:59:10 ◼   ► coins

00:59:11 ◼   ► and gems

00:59:12 ◼   ► in games

00:59:13 ◼   ► no game

00:59:14 ◼   ► is going to give apple

00:59:15 ◼   ► the 30 percent

00:59:16 ◼   ► right

00:59:17 ◼   ► none

00:59:18 ◼   ► and

00:59:19 ◼   ► well again

00:59:20 ◼   ► it depends on

00:59:21 ◼   ► the implementation

00:59:21 ◼   ► because

00:59:22 ◼   ► i think you're right

00:59:25 ◼   ► that they're going to be

00:59:26 ◼   ► extremely motivated

00:59:27 ◼   ► and probably

00:59:28 ◼   ► they'll just

00:59:29 ◼   ► there'll be a price disparity

00:59:30 ◼   ► between them

00:59:31 ◼   ► but i think

00:59:32 ◼   ► you still have to

00:59:33 ◼   ► offer

00:59:34 ◼   ► in-app purchase

00:59:35 ◼   ► as an option

00:59:36 ◼   ► maybe hidden away

00:59:38 ◼   ► but i think

00:59:38 ◼   ► that rule

00:59:39 ◼   ► is still

00:59:39 ◼   ► in effect

00:59:40 ◼   ► that apple

00:59:40 ◼   ► also needs

00:59:41 ◼   ► to be there

00:59:42 ◼   ► really

00:59:43 ◼   ► i think so

00:59:45 ◼   ► but um

00:59:46 ◼   ► it doesn't have to be

00:59:48 ◼   ► visible

00:59:49 ◼   ► right

00:59:50 ◼   ► or in your face

00:59:51 ◼   ► but what about for the things

00:59:52 ◼   ► that you

00:59:52 ◼   ► that you couldn't

00:59:54 ◼   ► because there's now stuff

00:59:55 ◼   ► that like you couldn't do

00:59:56 ◼   ► with in-app purchase

00:59:57 ◼   ► but the rules have been changed

00:59:58 ◼   ► and you can do

00:59:59 ◼   ► i don't know

01:00:00 ◼   ► i don't know

01:00:01 ◼   ► but uh

01:00:02 ◼   ► what i'm

01:00:02 ◼   ► what i'm saying here is

01:00:03 ◼   ► i think there's some

01:00:05 ◼   ► especially since that's

01:00:06 ◼   ► 100 percent profit

01:00:07 ◼   ► right i think

01:00:08 ◼   ► there's some

01:00:09 ◼   ► benefit

01:00:10 ◼   ► to giving apple's

01:00:13 ◼   ► apple its cut

01:00:14 ◼   ► and having it be

01:00:15 ◼   ► super easy

01:00:15 ◼   ► and i'm sure

01:00:17 ◼   ► these developers

01:00:18 ◼   ► will learn

01:00:18 ◼   ► if they don't know

01:00:19 ◼   ► already

01:00:19 ◼   ► the dynamics of

01:00:20 ◼   ► parental controls

01:00:22 ◼   ► and asking for approval

01:00:23 ◼   ► from parents

01:00:24 ◼   ► and

01:00:25 ◼   ► is

01:00:26 ◼   ► how much

01:00:27 ◼   ► does opening

01:00:28 ◼   ► safari

01:00:29 ◼   ► to a web page

01:00:30 ◼   ► where a kid

01:00:31 ◼   ► has to go and

01:00:32 ◼   ► tell their parents

01:00:33 ◼   ► to log in

01:00:34 ◼   ► or put in

01:00:34 ◼   ► their credit card

01:00:35 ◼   ► in order to

01:00:36 ◼   ► get

01:00:37 ◼   ► buy those gems

01:00:39 ◼   ► or even just

01:00:40 ◼   ► you as the consumer

01:00:41 ◼   ► like giving you

01:00:42 ◼   ► that second thought

01:00:43 ◼   ► before you press

01:00:43 ◼   ► buy

01:00:44 ◼   ► like there is

01:00:44 ◼   ► there are

01:00:45 ◼   ► there are

01:00:45 ◼   ► economic practices

01:00:47 ◼   ► there

01:00:47 ◼   ► that's the home

01:00:48 ◼   ► field advantage

01:00:50 ◼   ► you know

01:00:51 ◼   ► again

01:00:51 ◼   ► but that would be

01:00:52 ◼   ► you know

01:00:53 ◼   ► that would be

01:00:53 ◼   ► apple competing

01:00:54 ◼   ► so we'll see

01:00:55 ◼   ► but these things

01:00:57 ◼   ► right

01:00:57 ◼   ► the way that this

01:00:59 ◼   ► could touch

01:00:59 ◼   ► the money

01:01:00 ◼   ► in quite

01:01:00 ◼   ► significant ways

01:01:01 ◼   ► the way that

01:01:03 ◼   ► this could play

01:01:04 ◼   ► into

01:01:04 ◼   ► more

01:01:05 ◼   ► kind of

01:01:06 ◼   ► legal challenges

01:01:08 ◼   ► this decision

01:01:12 ◼   ► to me

01:01:13 ◼   ► feels pretty

01:01:14 ◼   ► existential

01:01:15 ◼   ► to apple's

01:01:17 ◼   ► business

01:01:17 ◼   ► now

01:01:19 ◼   ► because it's

01:01:20 ◼   ► services

01:01:21 ◼   ► right

01:01:21 ◼   ► so services

01:01:22 ◼   ► is the growth area

01:01:23 ◼   ► we're going to talk

01:01:23 ◼   ► about earnings

01:01:24 ◼   ► in a bit

01:01:24 ◼   ► but services

01:01:25 ◼   ► is the growth area

01:01:26 ◼   ► it has been

01:01:27 ◼   ► for years

01:01:28 ◼   ► it's what

01:01:28 ◼   ► they have

01:01:28 ◼   ► always pointed

01:01:30 ◼   ► to

01:01:31 ◼   ► for wall street

01:01:32 ◼   ► to be like

01:01:32 ◼   ► hey

01:01:33 ◼   ► look

01:01:34 ◼   ► we're still

01:01:36 ◼   ► able to do

01:01:37 ◼   ► stuff

01:01:37 ◼   ► you know

01:01:38 ◼   ► our products

01:01:39 ◼   ► might be flat

01:01:40 ◼   ► but look at

01:01:40 ◼   ► this growth

01:01:41 ◼   ► it just goes

01:01:41 ◼   ► up and up

01:01:42 ◼   ► and up

01:01:42 ◼   ► and up

01:01:42 ◼   ► forever

01:01:43 ◼   ► you couple

01:01:44 ◼   ► this decision

01:01:45 ◼   ► with the fact

01:01:46 ◼   ► that it's

01:01:46 ◼   ► looking more

01:01:47 ◼   ► and more

01:01:47 ◼   ► likely

01:01:48 ◼   ► like the

01:01:48 ◼   ► google search

01:01:49 ◼   ► deal money

01:01:49 ◼   ► is going

01:01:50 ◼   ► to be

01:01:50 ◼   ► going away

01:01:51 ◼   ► and

01:01:52 ◼   ► in a

01:01:53 ◼   ► few quarters

01:01:54 ◼   ► from now

01:01:55 ◼   ► that services

01:01:57 ◼   ► revenue

01:01:57 ◼   ► could take

01:01:58 ◼   ► a

01:01:59 ◼   ► pretty

01:02:00 ◼   ► big

01:02:00 ◼   ► decline

01:02:01 ◼   ► that

01:02:02 ◼   ► would

01:02:03 ◼   ► feel

01:02:04 ◼   ► at least

01:02:04 ◼   ► unlikely

01:02:05 ◼   ► that they

01:02:06 ◼   ► would be

01:02:06 ◼   ► able to

01:02:07 ◼   ► build up

01:02:08 ◼   ► with any

01:02:08 ◼   ► kind of

01:02:08 ◼   ► speed

01:02:09 ◼   ► so

01:02:11 ◼   ► I don't know

01:02:12 ◼   ► you take away

01:02:12 ◼   ► the services

01:02:13 ◼   ► revenue

01:02:13 ◼   ► obviously

01:02:14 ◼   ► Apple as a

01:02:15 ◼   ► company

01:02:15 ◼   ► is doing

01:02:16 ◼   ► fine

01:02:17 ◼   ► financially

01:02:17 ◼   ► it would

01:02:17 ◼   ► be a big

01:02:18 ◼   ► chunk

01:02:18 ◼   ► but not

01:02:19 ◼   ► you know

01:02:19 ◼   ► they're going

01:02:20 ◼   ► to carry

01:02:20 ◼   ► on

01:02:20 ◼   ► but the

01:02:21 ◼   ► stock market

01:02:22 ◼   ► is not

01:02:22 ◼   ► going to be

01:02:22 ◼   ► happy

01:02:22 ◼   ► right

01:02:23 ◼   ► and how

01:02:23 ◼   ► much

01:02:23 ◼   ► do they

01:02:24 ◼   ► care

01:02:24 ◼   ► I don't

01:02:24 ◼   ► know

01:02:24 ◼   ► I think

01:02:25 ◼   ► this is a

01:02:26 ◼   ► an important

01:02:26 ◼   ► point but I

01:02:27 ◼   ► also think

01:02:27 ◼   ► that it can

01:02:28 ◼   ► be over

01:02:28 ◼   ► emphasized

01:02:29 ◼   ► yes

01:02:30 ◼   ► I am

01:02:31 ◼   ► much more

01:02:33 ◼   ► skeptical it

01:02:34 ◼   ► sounds like

01:02:34 ◼   ► than you

01:02:35 ◼   ► are

01:02:35 ◼   ► of the

01:02:37 ◼   ► google search

01:02:38 ◼   ► money going

01:02:39 ◼   ► away

01:02:39 ◼   ► in part

01:02:41 ◼   ► because I

01:02:42 ◼   ► have a

01:02:42 ◼   ► hard time

01:02:43 ◼   ► imagining a

01:02:44 ◼   ► remedy

01:02:44 ◼   ► that is

01:02:46 ◼   ► in a case

01:02:46 ◼   ► against google

01:02:47 ◼   ► that allows

01:02:48 ◼   ► google to

01:02:48 ◼   ► keep money

01:02:49 ◼   ► and harms

01:02:51 ◼   ► other

01:02:52 ◼   ► people

01:02:53 ◼   ► who lose

01:02:54 ◼   ► money

01:02:54 ◼   ► seems like

01:02:55 ◼   ► a very

01:02:55 ◼   ► weird

01:02:56 ◼   ► remedy

01:02:56 ◼   ► against google

01:02:57 ◼   ► to say

01:02:57 ◼   ► google

01:02:57 ◼   ► keep your

01:02:58 ◼   ► whatever

01:02:59 ◼   ► they're spending

01:02:59 ◼   ► in total

01:03:00 ◼   ► 30 billion

01:03:00 ◼   ► dollars

01:03:00 ◼   ► just keep

01:03:01 ◼   ► that

01:03:01 ◼   ► and everybody's

01:03:03 ◼   ► going to

01:03:03 ◼   ► choose you

01:03:03 ◼   ► anyway

01:03:04 ◼   ► and now

01:03:04 ◼   ► you're not

01:03:04 ◼   ► also I

01:03:05 ◼   ► don't think

01:03:06 ◼   ► it actually

01:03:06 ◼   ► fits very

01:03:07 ◼   ► well because

01:03:07 ◼   ► it's

01:03:07 ◼   ► it's

01:03:08 ◼   ► it's

01:03:08 ◼   ► it's

01:03:09 ◼   ► referral

01:03:09 ◼   ► money

01:03:10 ◼   ► it's

01:03:10 ◼   ► affiliate

01:03:10 ◼   ► money

01:03:11 ◼   ► and I

01:03:12 ◼   ► think the

01:03:12 ◼   ► most that

01:03:13 ◼   ► will happen

01:03:13 ◼   ► is that

01:03:13 ◼   ► they won't

01:03:14 ◼   ► be allowed

01:03:14 ◼   ► to be

01:03:15 ◼   ► the default

01:03:16 ◼   ► but everybody's

01:03:17 ◼   ► going to

01:03:17 ◼   ► choose them

01:03:17 ◼   ► anyway

01:03:17 ◼   ► I think

01:03:18 ◼   ► Apple's

01:03:18 ◼   ► and by

01:03:19 ◼   ► the way

01:03:19 ◼   ► Safari

01:03:20 ◼   ► default Safari

01:03:22 ◼   ► search

01:03:22 ◼   ► is so

01:03:24 ◼   ► valuable

01:03:25 ◼   ► that

01:03:26 ◼   ► if

01:03:27 ◼   ► Apple

01:03:28 ◼   ► is not

01:03:29 ◼   ► allowed

01:03:29 ◼   ► to make

01:03:30 ◼   ► a deal

01:03:30 ◼   ► with Google

01:03:30 ◼   ► for it

01:03:31 ◼   ► Apple will

01:03:32 ◼   ► find another

01:03:33 ◼   ► way to make

01:03:33 ◼   ► money on it

01:03:34 ◼   ► they will

01:03:34 ◼   ► set up

01:03:35 ◼   ► their own

01:03:35 ◼   ► search engine

01:03:35 ◼   ► with their

01:03:36 ◼   ► own ads

01:03:36 ◼   ► they will

01:03:37 ◼   ► find a

01:03:37 ◼   ► partner

01:03:38 ◼   ► there will

01:03:39 ◼   ► be somebody

01:03:39 ◼   ► who will

01:03:40 ◼   ► pay for

01:03:40 ◼   ► Safari

01:03:41 ◼   ► it might

01:03:41 ◼   ► not be

01:03:41 ◼   ► as much

01:03:42 ◼   ► and this

01:03:42 ◼   ► is what

01:03:42 ◼   ► my point

01:03:43 ◼   ► is

01:03:43 ◼   ► I don't

01:03:44 ◼   ► think

01:03:44 ◼   ► you're

01:03:44 ◼   ► going to

01:03:44 ◼   ► talk about

01:03:45 ◼   ► 20 billion

01:03:45 ◼   ► going to

01:03:45 ◼   ► zero

01:03:46 ◼   ► but it

01:03:47 ◼   ► could take

01:03:47 ◼   ► a hit

01:03:47 ◼   ► and I

01:03:48 ◼   ► don't

01:03:48 ◼   ► think

01:03:48 ◼   ► in-app

01:03:49 ◼   ► purchase

01:03:50 ◼   ► and

01:03:50 ◼   ► app store

01:03:51 ◼   ► revenue

01:03:52 ◼   ► is going to

01:03:52 ◼   ► go from

01:03:53 ◼   ► all to

01:03:54 ◼   ► nothing

01:03:54 ◼   ► I think

01:03:55 ◼   ► it's going

01:03:55 ◼   ► to take

01:03:55 ◼   ► a hit

01:03:56 ◼   ► and that

01:03:56 ◼   ► means yes

01:03:57 ◼   ► the services

01:03:57 ◼   ► line

01:03:58 ◼   ► were probably

01:03:59 ◼   ► headed for a

01:04:00 ◼   ► moment where the

01:04:01 ◼   ► always goes up

01:04:02 ◼   ► service line

01:04:03 ◼   ► is going to have

01:04:03 ◼   ► a correction

01:04:04 ◼   ► but I will

01:04:06 ◼   ► also say

01:04:06 ◼   ► because we're

01:04:07 ◼   ► going to talk

01:04:07 ◼   ► about Apple's

01:04:08 ◼   ► results in a

01:04:09 ◼   ► little bit

01:04:09 ◼   ► that

01:04:10 ◼   ► if Wall Street

01:04:12 ◼   ► understands it

01:04:13 ◼   ► and they understand

01:04:14 ◼   ► the ramifications

01:04:14 ◼   ► and after

01:04:16 ◼   ► that is

01:04:16 ◼   ► done

01:04:17 ◼   ► it continues

01:04:18 ◼   ► to go up

01:04:19 ◼   ► from the

01:04:20 ◼   ► new lower

01:04:20 ◼   ► level

01:04:21 ◼   ► they'll probably

01:04:23 ◼   ► get over it

01:04:24 ◼   ► right

01:04:24 ◼   ► they'll get

01:04:25 ◼   ► over it

01:04:25 ◼   ► it's not

01:04:25 ◼   ► it's not

01:04:26 ◼   ► existential

01:04:27 ◼   ► because Apple's

01:04:28 ◼   ► doing fine

01:04:29 ◼   ► it really is

01:04:29 ◼   ► just

01:04:30 ◼   ► it's an area

01:04:31 ◼   ► that they've

01:04:31 ◼   ► really built

01:04:32 ◼   ► up that

01:04:32 ◼   ► they're going

01:04:33 ◼   ► to get

01:04:33 ◼   ► a black

01:04:33 ◼   ► eye in

01:04:34 ◼   ► but if

01:04:35 ◼   ► it's about

01:04:35 ◼   ► court cases

01:04:36 ◼   ► and you know

01:04:37 ◼   ► things like

01:04:37 ◼   ► that that are

01:04:38 ◼   ► that are

01:04:39 ◼   ► out there

01:04:39 ◼   ► that are

01:04:40 ◼   ► just part

01:04:40 ◼   ► of doing

01:04:40 ◼   ► business

01:04:41 ◼   ► I don't

01:04:42 ◼   ► know

01:04:42 ◼   ► whether

01:04:42 ◼   ► Wall Street

01:04:43 ◼   ► will be

01:04:43 ◼   ► too upset

01:04:44 ◼   ► about it

01:04:44 ◼   ► in the

01:04:45 ◼   ► long run

01:04:45 ◼   ► even though

01:04:46 ◼   ► it's going

01:04:46 ◼   ► to be a

01:04:47 ◼   ► hit to

01:04:47 ◼   ► them

01:04:47 ◼   ► yeah

01:04:48 ◼   ► that's

01:04:48 ◼   ► fair

01:04:48 ◼   ► so

01:04:51 ◼   ► I wanted

01:04:52 ◼   ► to talk

01:04:53 ◼   ► about Luca

01:04:53 ◼   ► Maestri for a second

01:04:54 ◼   ► okay

01:04:54 ◼   ► great

01:04:55 ◼   ► because he left

01:04:57 ◼   ► he's not the CFO

01:04:58 ◼   ► anymore

01:04:58 ◼   ► no

01:04:59 ◼   ► and one of the

01:05:00 ◼   ► stories here

01:05:00 ◼   ► is that

01:05:00 ◼   ► Luca

01:05:01 ◼   ► is prominently

01:05:03 ◼   ► named as one

01:05:03 ◼   ► of the people

01:05:04 ◼   ► and one of his

01:05:04 ◼   ► lieutenants

01:05:05 ◼   ► was personally

01:05:06 ◼   ► referred to

01:05:06 ◼   ► for criminal

01:05:07 ◼   ► contempt

01:05:07 ◼   ► he's referred

01:05:08 ◼   ► to in that

01:05:09 ◼   ► story

01:05:09 ◼   ► as Phil

01:05:10 ◼   ► Schiller

01:05:10 ◼   ► who's

01:05:11 ◼   ► paid

01:05:11 ◼   ► attention

01:05:11 ◼   ► to the

01:05:12 ◼   ► whole

01:05:12 ◼   ► trial

01:05:12 ◼   ► saying

01:05:12 ◼   ► we can't

01:05:12 ◼   ► do

01:05:12 ◼   ► this

01:05:13 ◼   ► and Luca

01:05:13 ◼   ► Maestri

01:05:14 ◼   ► says

01:05:14 ◼   ► no

01:05:14 ◼   ► let's

01:05:14 ◼   ► do

01:05:15 ◼   ► let's

01:05:15 ◼   ► concoct

01:05:15 ◼   ► a thing

01:05:16 ◼   ► and Tim

01:05:16 ◼   ► chose

01:05:16 ◼   ► poorly

01:05:17 ◼   ► and chose

01:05:17 ◼   ► to go

01:05:18 ◼   ► with Luca

01:05:18 ◼   ► I'll also

01:05:19 ◼   ► throw in

01:05:20 ◼   ► that report

01:05:20 ◼   ► from a couple

01:05:20 ◼   ► of weeks

01:05:21 ◼   ► ago

01:05:21 ◼   ► about how

01:05:22 ◼   ► Apple's

01:05:23 ◼   ► AI team

01:05:23 ◼   ► wanted to

01:05:23 ◼   ► buy

01:05:24 ◼   ► an enormous

01:05:25 ◼   ► amount

01:05:26 ◼   ► of GPUs

01:05:27 ◼   ► for AI

01:05:28 ◼   ► training

01:05:29 ◼   ► a key

01:05:29 ◼   ► area where

01:05:30 ◼   ► Apple is

01:05:30 ◼   ► behind

01:05:31 ◼   ► and the

01:05:32 ◼   ► report

01:05:32 ◼   ► was

01:05:32 ◼   ► that

01:05:33 ◼   ► Luca

01:05:33 ◼   ► said

01:05:34 ◼   ► no

01:05:34 ◼   ► and

01:05:36 ◼   ► Apple

01:05:37 ◼   ► actually

01:05:38 ◼   ► responded

01:05:38 ◼   ► to that

01:05:39 ◼   ► report

01:05:39 ◼   ► and their

01:05:40 ◼   ► response

01:05:41 ◼   ► was

01:05:41 ◼   ► weak

01:05:41 ◼   ► sauce

01:05:42 ◼   ► because

01:05:42 ◼   ► their

01:05:42 ◼   ► response

01:05:42 ◼   ► was

01:05:43 ◼   ► no

01:05:43 ◼   ► no

01:05:43 ◼   ► no

01:05:43 ◼   ► no

01:05:43 ◼   ► no

01:05:43 ◼   ► all

01:05:45 ◼   ► we

01:05:45 ◼   ► did

01:05:45 ◼   ► was

01:05:45 ◼   ► slow

01:05:46 ◼   ► down

01:05:46 ◼   ► the

01:05:46 ◼   ► amount

01:05:47 ◼   ► but they

01:05:47 ◼   ► did get

01:05:47 ◼   ► it

01:05:48 ◼   ► eventually

01:05:48 ◼   ► which to

01:05:49 ◼   ► me

01:05:50 ◼   ► I read

01:05:51 ◼   ► as being

01:05:51 ◼   ► that's

01:05:52 ◼   ► not

01:05:52 ◼   ► great

01:05:52 ◼   ► Apple's

01:05:54 ◼   ► got

01:05:54 ◼   ► its

01:05:54 ◼   ► hair

01:05:54 ◼   ► on

01:05:54 ◼   ► fire

01:05:55 ◼   ► about

01:05:55 ◼   ► AI

01:05:55 ◼   ► training

01:05:55 ◼   ► and AI

01:05:56 ◼   ► models

01:05:56 ◼   ► and all

01:05:57 ◼   ► of that

01:05:57 ◼   ► and you

01:05:58 ◼   ► go

01:05:58 ◼   ► and your

01:05:59 ◼   ► boss

01:06:00 ◼   ► the head

01:06:01 ◼   ► of AI

01:06:01 ◼   ► says we're

01:06:01 ◼   ► going to buy

01:06:02 ◼   ► this stuff

01:06:02 ◼   ► and then the

01:06:03 ◼   ► CFO rolls

01:06:04 ◼   ► in and says

01:06:04 ◼   ► well let's

01:06:05 ◼   ► not buy it

01:06:05 ◼   ► all at once

01:06:06 ◼   ► it's like

01:06:07 ◼   ► your parent

01:06:07 ◼   ► coming in

01:06:08 ◼   ► and saying

01:06:08 ◼   ► well I know

01:06:09 ◼   ► you want

01:06:11 ◼   ► this thing

01:06:11 ◼   ► but why don't

01:06:12 ◼   ► we get you

01:06:12 ◼   ► this lesser

01:06:13 ◼   ► thing

01:06:13 ◼   ► or why don't

01:06:14 ◼   ► we just do

01:06:14 ◼   ► a little

01:06:14 ◼   ► like why

01:06:15 ◼   ► don't

01:06:16 ◼   ► why don't

01:06:17 ◼   ► we rent

01:06:17 ◼   ► a surfboard

01:06:19 ◼   ► instead of

01:06:19 ◼   ► buying a

01:06:20 ◼   ► surfboard

01:06:21 ◼   ► for you

01:06:21 ◼   ► which is

01:06:21 ◼   ► great if

01:06:22 ◼   ► you're

01:06:22 ◼   ► going to

01:06:22 ◼   ► go on

01:06:23 ◼   ► to the

01:06:23 ◼   ► next

01:06:23 ◼   ► thing

01:06:23 ◼   ► but it

01:06:24 ◼   ► turns out

01:06:24 ◼   ► AI

01:06:24 ◼   ► not the

01:06:25 ◼   ► next

01:06:25 ◼   ► thing

01:06:25 ◼   ► and

01:06:26 ◼   ► I

01:06:27 ◼   ► got really

01:06:28 ◼   ► bad

01:06:29 ◼   ► scary

01:06:29 ◼   ► vibes

01:06:30 ◼   ► from the

01:06:30 ◼   ► idea

01:06:31 ◼   ► that the

01:06:32 ◼   ► CFO

01:06:32 ◼   ► was telling

01:06:33 ◼   ► the head

01:06:34 ◼   ► of machine

01:06:34 ◼   ► learning

01:06:35 ◼   ► how many

01:06:36 ◼   ► GPUs

01:06:36 ◼   ► he could

01:06:37 ◼   ► buy

01:06:37 ◼   ► and slow

01:06:39 ◼   ► played

01:06:39 ◼   ► Apple's

01:06:39 ◼   ► argument

01:06:40 ◼   ► is

01:06:40 ◼   ► essentially

01:06:40 ◼   ► well we

01:06:41 ◼   ► just slow

01:06:42 ◼   ► played

01:06:42 ◼   ► him

01:06:42 ◼   ► which is

01:06:44 ◼   ► not

01:06:44 ◼   ► I mean

01:06:44 ◼   ► that doesn't

01:06:45 ◼   ► really help

01:06:46 ◼   ► so I

01:06:47 ◼   ► have to

01:06:47 ◼   ► say

01:06:48 ◼   ► knowing

01:06:49 ◼   ► what we

01:06:49 ◼   ► know

01:06:49 ◼   ► now

01:06:50 ◼   ► one

01:06:52 ◼   ► I wonder

01:06:53 ◼   ► if this

01:06:54 ◼   ► is why

01:06:54 ◼   ► Luke is

01:06:54 ◼   ► not the

01:06:54 ◼   ► CFO

01:06:55 ◼   ► anymore

01:06:55 ◼   ► that

01:06:57 ◼   ► people

01:06:57 ◼   ► within

01:06:58 ◼   ► Apple

01:06:58 ◼   ► were

01:06:58 ◼   ► very

01:06:59 ◼   ► unhappy

01:06:59 ◼   ► with this

01:06:59 ◼   ► kind of

01:07:00 ◼   ► behavior

01:07:00 ◼   ► and they

01:07:01 ◼   ► knew

01:07:01 ◼   ► that there

01:07:01 ◼   ► were going

01:07:02 ◼   ► to be

01:07:02 ◼   ► ramifications

01:07:02 ◼   ► of it

01:07:03 ◼   ► maybe

01:07:03 ◼   ► maybe not

01:07:04 ◼   ► we'll

01:07:04 ◼   ► see

01:07:04 ◼   ► and two

01:07:06 ◼   ► I want

01:07:07 ◼   ► to point

01:07:07 ◼   ► out that

01:07:07 ◼   ► we can't

01:07:09 ◼   ► make

01:07:09 ◼   ► Luca

01:07:09 ◼   ► Maestri

01:07:09 ◼   ► the

01:07:10 ◼   ► boogeyman

01:07:10 ◼   ► because

01:07:11 ◼   ► as I

01:07:12 ◼   ► mentioned

01:07:12 ◼   ► earlier

01:07:13 ◼   ► and as I

01:07:14 ◼   ► know

01:07:14 ◼   ► from

01:07:14 ◼   ► all

01:07:15 ◼   ► through

01:07:15 ◼   ► my

01:07:16 ◼   ► career

01:07:16 ◼   ► the job

01:07:18 ◼   ► of the

01:07:18 ◼   ► CEO

01:07:18 ◼   ► the job

01:07:19 ◼   ► of the

01:07:19 ◼   ► person

01:07:20 ◼   ► at the

01:07:20 ◼   ► top

01:07:20 ◼   ► is to

01:07:21 ◼   ► balance

01:07:22 ◼   ► all the

01:07:22 ◼   ► needs

01:07:23 ◼   ► of the

01:07:23 ◼   ► organization

01:07:23 ◼   ► and have

01:07:24 ◼   ► a vision

01:07:24 ◼   ► for what

01:07:25 ◼   ► that organization

01:07:25 ◼   ► needs to

01:07:26 ◼   ► do

01:07:26 ◼   ► and their

01:07:27 ◼   ► job is not

01:07:27 ◼   ► and I hear

01:07:28 ◼   ► this a lot

01:07:28 ◼   ► in some

01:07:29 ◼   ► bad

01:07:29 ◼   ► analysis

01:07:30 ◼   ► I hear

01:07:32 ◼   ► people say

01:07:32 ◼   ► the job

01:07:33 ◼   ► of the

01:07:33 ◼   ► CEO

01:07:33 ◼   ► is to

01:07:34 ◼   ► make the

01:07:34 ◼   ► shareholders

01:07:34 ◼   ► happy

01:07:35 ◼   ► or to

01:07:36 ◼   ► maximize

01:07:36 ◼   ► revenue

01:07:37 ◼   ► or to

01:07:38 ◼   ► maximize

01:07:38 ◼   ► profit

01:07:39 ◼   ► and what

01:07:40 ◼   ► I would

01:07:40 ◼   ► say is

01:07:40 ◼   ► I

01:07:41 ◼   ► think

01:07:41 ◼   ► the

01:07:41 ◼   ► job

01:07:42 ◼   ► of the

01:07:42 ◼   ► CEO

01:07:43 ◼   ► is

01:07:43 ◼   ► of a

01:07:43 ◼   ► public

01:07:44 ◼   ► company

01:07:44 ◼   ► to

01:07:44 ◼   ► make

01:07:44 ◼   ► the

01:07:45 ◼   ► shareholders

01:07:45 ◼   ► happy

01:07:46 ◼   ► in the

01:07:46 ◼   ► long

01:07:47 ◼   ► run

01:07:48 ◼   ► in terms

01:07:49 ◼   ► of the

01:07:49 ◼   ► corporation's

01:07:50 ◼   ► value

01:07:51 ◼   ► the danger

01:07:52 ◼   ► is you

01:07:52 ◼   ► get these

01:07:53 ◼   ► short-sighted

01:07:54 ◼   ► CEOs

01:07:54 ◼   ► whose job

01:07:55 ◼   ► is to

01:07:55 ◼   ► make the

01:07:56 ◼   ► number

01:07:56 ◼   ► this quarter

01:07:56 ◼   ► and not

01:07:57 ◼   ► worry

01:07:57 ◼   ► about next

01:07:58 ◼   ► quarter

01:07:58 ◼   ► and try

01:07:58 ◼   ► to make

01:07:59 ◼   ► that

01:07:59 ◼   ► quarterly

01:07:59 ◼   ► number

01:07:59 ◼   ► as long

01:08:00 ◼   ► as they

01:08:00 ◼   ► can

01:08:00 ◼   ► and once

01:08:01 ◼   ► they

01:08:01 ◼   ► finally

01:08:01 ◼   ► don't

01:08:01 ◼   ► make

01:08:02 ◼   ► it

01:08:02 ◼   ► they

01:08:02 ◼   ► get

01:08:02 ◼   ► a

01:08:02 ◼   ► golden

01:08:03 ◼   ► parachute

01:08:03 ◼   ► and they're

01:08:03 ◼   ► gone

01:08:04 ◼   ► and they

01:08:04 ◼   ► replace it

01:08:04 ◼   ► with another

01:08:05 ◼   ► guy who

01:08:05 ◼   ► goes through

01:08:05 ◼   ► the

01:08:05 ◼   ► same

01:08:05 ◼   ► process

01:08:06 ◼   ► and

01:08:06 ◼   ► that's

01:08:06 ◼   ► how you

01:08:07 ◼   ► hollow

01:08:07 ◼   ► out

01:08:07 ◼   ► successful

01:08:08 ◼   ► businesses

01:08:08 ◼   ► and destroy

01:08:09 ◼   ► them

01:08:09 ◼   ► the job

01:08:10 ◼   ► of Tim

01:08:10 ◼   ► Cook

01:08:11 ◼   ► is not

01:08:12 ◼   ► to be

01:08:13 ◼   ► penny wise

01:08:14 ◼   ► and pound

01:08:15 ◼   ► foolish

01:08:15 ◼   ► the job

01:08:16 ◼   ► of Tim

01:08:16 ◼   ► Cook

01:08:16 ◼   ► is to

01:08:16 ◼   ► listen

01:08:17 ◼   ► to his

01:08:17 ◼   ► CFO

01:08:17 ◼   ► yes

01:08:18 ◼   ► it is

01:08:19 ◼   ► but also

01:08:20 ◼   ► to consider

01:08:21 ◼   ► the value

01:08:22 ◼   ► of the

01:08:22 ◼   ► brand

01:08:23 ◼   ► and the

01:08:23 ◼   ► long-term

01:08:24 ◼   ► relationship

01:08:24 ◼   ► with

01:08:24 ◼   ► developers

01:08:25 ◼   ► and the

01:08:26 ◼   ► possibility

01:08:27 ◼   ► that if

01:08:27 ◼   ► they lose

01:08:28 ◼   ► this

01:08:28 ◼   ► if they

01:08:29 ◼   ► displease

01:08:29 ◼   ► the judge

01:08:30 ◼   ► they're not

01:08:31 ◼   ► going to

01:08:31 ◼   ► just lose

01:08:31 ◼   ► some money

01:08:32 ◼   ► they're going

01:08:33 ◼   ► to lose

01:08:33 ◼   ► all this

01:08:34 ◼   ► money

01:08:34 ◼   ► because they're

01:08:35 ◼   ► going to

01:08:35 ◼   ► be

01:08:35 ◼   ► zeroed

01:08:36 ◼   ► out

01:08:36 ◼   ► by an

01:08:37 ◼   ► angry

01:08:37 ◼   ► judge

01:08:38 ◼   ► the job

01:08:39 ◼   ► of the

01:08:39 ◼   ► CEO

01:08:40 ◼   ► is to

01:08:40 ◼   ► consider

01:08:40 ◼   ► all of

01:08:41 ◼   ► that

01:08:41 ◼   ► and that's

01:08:43 ◼   ► the part

01:08:43 ◼   ► that troubles

01:08:43 ◼   ► me the

01:08:44 ◼   ► most about

01:08:44 ◼   ► this

01:08:45 ◼   ► is not

01:08:46 ◼   ► because I'm

01:08:47 ◼   ► not saying

01:08:47 ◼   ► don't listen

01:08:48 ◼   ► to the

01:08:48 ◼   ► money men

01:08:48 ◼   ► I'm saying

01:08:49 ◼   ► CEO's job

01:08:50 ◼   ► is to

01:08:51 ◼   ► not just

01:08:52 ◼   ► listen to

01:08:53 ◼   ► the money

01:08:53 ◼   ► men

01:08:54 ◼   ► but consider

01:08:54 ◼   ► the big

01:08:55 ◼   ► picture

01:08:55 ◼   ► the money

01:08:56 ◼   ► men have

01:08:56 ◼   ► a very

01:08:56 ◼   ► loud

01:08:57 ◼   ► voice

01:08:57 ◼   ► a good

01:08:58 ◼   ► CEO

01:08:58 ◼   ► knows

01:08:58 ◼   ► that you

01:08:59 ◼   ► can't

01:08:59 ◼   ► just

01:09:00 ◼   ► listen

01:09:00 ◼   ► to that

01:09:01 ◼   ► noise

01:09:01 ◼   ► because there

01:09:02 ◼   ► are bigger

01:09:02 ◼   ► picture

01:09:03 ◼   ► issues

01:09:04 ◼   ► and I

01:09:04 ◼   ► gotta say

01:09:05 ◼   ► this is

01:09:06 ◼   ► the most

01:09:06 ◼   ► disappointed

01:09:07 ◼   ► and I

01:09:08 ◼   ► know that

01:09:08 ◼   ► other thing

01:09:09 ◼   ► this is the

01:09:10 ◼   ► most disappointed

01:09:10 ◼   ► I've been in

01:09:12 ◼   ► Tim Cook

01:09:12 ◼   ► because this

01:09:14 ◼   ► suggests to me

01:09:15 ◼   ► something that I

01:09:16 ◼   ► didn't really

01:09:16 ◼   ► think was true

01:09:17 ◼   ► of Tim Cook

01:09:18 ◼   ► which is that

01:09:19 ◼   ► at the end

01:09:20 ◼   ► of the day

01:09:20 ◼   ► if there's an

01:09:22 ◼   ► argument between

01:09:22 ◼   ► doing a

01:09:24 ◼   ► good thing

01:09:25 ◼   ► that takes a

01:09:26 ◼   ► hit in the

01:09:27 ◼   ► short term

01:09:27 ◼   ► but is probably

01:09:28 ◼   ► better for

01:09:28 ◼   ► Apple in the

01:09:29 ◼   ► long term

01:09:30 ◼   ► and also

01:09:30 ◼   ► complies

01:09:31 ◼   ► with the

01:09:32 ◼   ► law

01:09:32 ◼   ► or just

01:09:33 ◼   ► spiting

01:09:34 ◼   ► a judge's

01:09:35 ◼   ► order

01:09:35 ◼   ► because you

01:09:36 ◼   ► want to

01:09:36 ◼   ► maximize

01:09:36 ◼   ► revenue

01:09:37 ◼   ► that he

01:09:38 ◼   ► chose

01:09:39 ◼   ► that one

01:09:40 ◼   ► that's very

01:09:41 ◼   ► disappointing

01:09:41 ◼   ► because that

01:09:42 ◼   ► is not

01:09:42 ◼   ► thinking big

01:09:43 ◼   ► picture

01:09:43 ◼   ► of a guy

01:09:44 ◼   ► who I

01:09:45 ◼   ► think

01:09:45 ◼   ► has shown

01:09:47 ◼   ► that he's

01:09:47 ◼   ► pretty good

01:09:48 ◼   ► at thinking

01:09:48 ◼   ► about the

01:09:49 ◼   ► big picture

01:09:49 ◼   ► but I

01:09:50 ◼   ► think he

01:09:50 ◼   ► got overwhelmed

01:09:51 ◼   ► by whatever

01:09:52 ◼   ► it is

01:09:52 ◼   ► that Apple

01:09:53 ◼   ► thinks it's

01:09:53 ◼   ► really entitled

01:09:54 ◼   ► to not

01:09:55 ◼   ► compete

01:09:55 ◼   ► and to

01:09:56 ◼   ► take

01:09:56 ◼   ► as much

01:09:57 ◼   ► money

01:09:57 ◼   ► as it

01:09:57 ◼   ► can

01:09:57 ◼   ► out of

01:09:58 ◼   ► the

01:09:58 ◼   ► market

01:09:58 ◼   ► I'm going

01:09:59 ◼   ► to go

01:10:00 ◼   ► one step

01:10:00 ◼   ► further than

01:10:01 ◼   ► in you

01:10:01 ◼   ► because I

01:10:02 ◼   ► agree with

01:10:02 ◼   ► you completely

01:10:03 ◼   ► so I

01:10:04 ◼   ► I find in

01:10:06 ◼   ► general it

01:10:07 ◼   ► to be

01:10:08 ◼   ► quite tiring

01:10:09 ◼   ► to hear people

01:10:10 ◼   ► try to fire

01:10:11 ◼   ► this person

01:10:11 ◼   ► fire this

01:10:12 ◼   ► person

01:10:12 ◼   ► that kind

01:10:13 ◼   ► of

01:10:13 ◼   ► where every

01:10:15 ◼   ► time you're

01:10:15 ◼   ► unhappy about

01:10:16 ◼   ► something that

01:10:16 ◼   ► Tim Cook

01:10:17 ◼   ► does

01:10:17 ◼   ► we have

01:10:18 ◼   ► friends that

01:10:19 ◼   ► have wanted

01:10:19 ◼   ► to fire

01:10:20 ◼   ► Tim Cook

01:10:20 ◼   ► for a long

01:10:20 ◼   ► time

01:10:21 ◼   ► and talk

01:10:21 ◼   ► about it

01:10:22 ◼   ► often

01:10:22 ◼   ► this is

01:10:24 ◼   ► the first

01:10:25 ◼   ► time

01:10:25 ◼   ► that I

01:10:27 ◼   ► really think

01:10:28 ◼   ► that it

01:10:29 ◼   ► could be

01:10:30 ◼   ► time to

01:10:30 ◼   ► consider a

01:10:31 ◼   ► new CEO

01:10:31 ◼   ► and the

01:10:33 ◼   ► reason for

01:10:34 ◼   ► me is

01:10:34 ◼   ► not

01:10:35 ◼   ► it's not

01:10:37 ◼   ► the Luca

01:10:38 ◼   ► thing

01:10:38 ◼   ► right

01:10:39 ◼   ► like it's

01:10:41 ◼   ► for me

01:10:41 ◼   ► it was

01:10:43 ◼   ► the fact

01:10:44 ◼   ► that there

01:10:44 ◼   ► are designers

01:10:45 ◼   ► who

01:10:47 ◼   ► were egging

01:10:49 ◼   ► each other

01:10:49 ◼   ► on to

01:10:51 ◼   ► make the

01:10:52 ◼   ► scare screens

01:10:53 ◼   ► look scarier

01:10:54 ◼   ► because it

01:10:55 ◼   ► would appease

01:10:56 ◼   ► executives

01:10:57 ◼   ► like there's

01:10:58 ◼   ► transcripts of

01:11:00 ◼   ► this from

01:11:00 ◼   ► Slack

01:11:01 ◼   ► that it

01:11:01 ◼   ► would make

01:11:02 ◼   ► the bosses

01:11:02 ◼   ► happy

01:11:03 ◼   ► if they

01:11:04 ◼   ► made it

01:11:04 ◼   ► worse

01:11:04 ◼   ► and similarly

01:11:05 ◼   ► the people

01:11:06 ◼   ► inside of

01:11:07 ◼   ► teams who

01:11:08 ◼   ► were celebrating

01:11:09 ◼   ► the fact

01:11:09 ◼   ► that this

01:11:11 ◼   ► would be

01:11:11 ◼   ► more expensive

01:11:12 ◼   ► it seems

01:11:14 ◼   ► clear to me

01:11:14 ◼   ► from seeing

01:11:15 ◼   ► this slice

01:11:16 ◼   ► of communication

01:11:18 ◼   ► that Apple's

01:11:20 ◼   ► corporate

01:11:20 ◼   ► culture

01:11:21 ◼   ► has changed

01:11:23 ◼   ► to a

01:11:26 ◼   ► degree

01:11:26 ◼   ► which I'm

01:11:28 ◼   ► unhappy

01:11:28 ◼   ► with

01:11:28 ◼   ► it's all

01:11:30 ◼   ► I've always

01:11:31 ◼   ► felt that

01:11:31 ◼   ► and the

01:11:32 ◼   ► reason that I

01:11:32 ◼   ► love Apple

01:11:33 ◼   ► products and

01:11:33 ◼   ► why I

01:11:34 ◼   ► respect the

01:11:35 ◼   ► company is it

01:11:36 ◼   ► feels like their

01:11:37 ◼   ► corporate culture

01:11:37 ◼   ► was about

01:11:38 ◼   ► producing the

01:11:38 ◼   ► best possible

01:11:39 ◼   ► work and

01:11:41 ◼   ► I know that

01:11:41 ◼   ► that is the

01:11:42 ◼   ► thing that

01:11:43 ◼   ► encourages people

01:11:44 ◼   ► to go work

01:11:45 ◼   ► there but

01:11:46 ◼   ► it seems

01:11:46 ◼   ► like there

01:11:47 ◼   ► is a level

01:11:48 ◼   ► of the

01:11:48 ◼   ► company now

01:11:49 ◼   ► a level

01:11:49 ◼   ► of the

01:11:49 ◼   ► company which

01:11:50 ◼   ► is being

01:11:50 ◼   ► listened to

01:11:51 ◼   ► by the

01:11:51 ◼   ► CEO maybe

01:11:52 ◼   ► more than

01:11:52 ◼   ► any other

01:11:53 ◼   ► level where

01:11:54 ◼   ► their most

01:11:56 ◼   ► important thing

01:11:57 ◼   ► is to

01:12:00 ◼   ► make money

01:12:01 ◼   ► at all

01:12:02 ◼   ► costs which

01:12:03 ◼   ► is what most

01:12:04 ◼   ► businesses do

01:12:05 ◼   ► but then you

01:12:07 ◼   ► lose the

01:12:08 ◼   ► customer experience

01:12:09 ◼   ► which is

01:12:10 ◼   ► Apple's whole

01:12:11 ◼   ► friggin thing

01:12:12 ◼   ► and it should

01:12:13 ◼   ► have remained

01:12:14 ◼   ► the whole thing

01:12:15 ◼   ► and I just

01:12:16 ◼   ► feel like if

01:12:16 ◼   ► you've gotten

01:12:17 ◼   ► if you are at

01:12:19 ◼   ► the point where

01:12:20 ◼   ► you've taken

01:12:22 ◼   ► Apple and

01:12:23 ◼   ► turned it into

01:12:24 ◼   ► something where

01:12:25 ◼   ► there are

01:12:25 ◼   ► designers that

01:12:27 ◼   ► are trying to

01:12:28 ◼   ► make text

01:12:29 ◼   ► read scarier

01:12:30 ◼   ► to customers

01:12:31 ◼   ► so they are

01:12:33 ◼   ► less likely to

01:12:34 ◼   ► click a button

01:12:35 ◼   ► that would save

01:12:36 ◼   ► their money

01:12:37 ◼   ► you've gone too

01:12:39 ◼   ► far it's gone

01:12:40 ◼   ► too far and I

01:12:42 ◼   ► don't know how

01:12:43 ◼   ► you untangle

01:12:45 ◼   ► that and I

01:12:46 ◼   ► don't think

01:12:47 ◼   ► this is it

01:12:48 ◼   ► because I know

01:12:49 ◼   ► those same

01:12:49 ◼   ► people and

01:12:50 ◼   ► now like that

01:12:52 ◼   ► dang judge

01:12:53 ◼   ► she doesn't

01:12:54 ◼   ► understand us

01:12:55 ◼   ► how dare she

01:12:56 ◼   ► that's our

01:12:56 ◼   ► money how

01:12:58 ◼   ► could she

01:12:58 ◼   ► and the

01:12:59 ◼   ► reason and

01:13:00 ◼   ► like that and

01:13:01 ◼   ► I am I'm very

01:13:02 ◼   ► confident that that

01:13:03 ◼   ► thinking is

01:13:04 ◼   ► encouraged which

01:13:06 ◼   ► would suggest to

01:13:07 ◼   ► me and I feel

01:13:08 ◼   ► confident in that

01:13:09 ◼   ► just from reading

01:13:09 ◼   ► what I have read

01:13:10 ◼   ► in the last few

01:13:11 ◼   ► days and so I

01:13:13 ◼   ► feel like at this

01:13:14 ◼   ► point there needs

01:13:16 ◼   ► to be some

01:13:17 ◼   ► change I don't

01:13:20 ◼   ► know if it's

01:13:20 ◼   ► Tim Cook I

01:13:21 ◼   ► don't know right

01:13:22 ◼   ► maybe it was

01:13:22 ◼   ► Luca I don't

01:13:23 ◼   ► know but they've

01:13:25 ◼   ► jumped the

01:13:25 ◼   ► shark at this

01:13:27 ◼   ► point I think

01:13:28 ◼   ► so yes I mean the

01:13:30 ◼   ► argument is that

01:13:31 ◼   ► Apple's whole

01:13:31 ◼   ► business model is

01:13:32 ◼   ► they use advanced

01:13:33 ◼   ► technology and their

01:13:34 ◼   ► own innovation to

01:13:35 ◼   ► create products that

01:13:36 ◼   ► delight customers and

01:13:37 ◼   ► the money follows and

01:13:39 ◼   ► what this is is this

01:13:40 ◼   ► is a little thing

01:13:40 ◼   ► where they got a

01:13:41 ◼   ► they got an

01:13:41 ◼   ► enormous injection

01:13:42 ◼   ► of revenue that

01:13:43 ◼   ► they didn't really

01:13:44 ◼   ► I think expect

01:13:46 ◼   ► which is app store

01:13:47 ◼   ► revenue like when

01:13:48 ◼   ► it happened and

01:13:50 ◼   ► they've become not

01:13:52 ◼   ► only have they

01:13:52 ◼   ► become kind of

01:13:54 ◼   ► reliant on it which

01:13:55 ◼   ► I don't think is

01:13:55 ◼   ► actually true but it

01:13:56 ◼   ► is a source of

01:13:57 ◼   ► growth for them

01:13:57 ◼   ► Wall Street loves

01:13:59 ◼   ► it but they become

01:14:01 ◼   ► addicted to it and

01:14:02 ◼   ► they feel they

01:14:02 ◼   ► deserve it and that

01:14:03 ◼   ► they feel that it

01:14:04 ◼   ► belongs to them and

01:14:06 ◼   ► it has it has I

01:14:09 ◼   ► don't know whatever

01:14:10 ◼   ► metaphor you want

01:14:11 ◼   ► here I mean it's

01:14:11 ◼   ► hollowed them out

01:14:12 ◼   ► it's poisoned them

01:14:14 ◼   ► it's addicted them

01:14:15 ◼   ► to something they

01:14:17 ◼   ► they feel entitled

01:14:18 ◼   ► to it and that's

01:14:20 ◼   ► what you're saying

01:14:20 ◼   ► about the culture

01:14:21 ◼   ► being broken the

01:14:22 ◼   ► priorities being

01:14:23 ◼   ► misaligned and

01:14:24 ◼   ► and you know you

01:14:25 ◼   ► can I mentioned

01:14:26 ◼   ► Luca Maestri I

01:14:27 ◼   ► don't know that's

01:14:28 ◼   ► just a weird

01:14:29 ◼   ► coincidence that these

01:14:29 ◼   ► two things happen

01:14:30 ◼   ► but I will say it

01:14:31 ◼   ► goes to in the end

01:14:32 ◼   ► to the CEO it goes

01:14:33 ◼   ► to Tim Cook Tim

01:14:35 ◼   ► Cook talks a good

01:14:35 ◼   ► game about what

01:14:36 ◼   ► Apple stands for

01:14:37 ◼   ► but when you

01:14:38 ◼   ► look at this you

01:14:38 ◼   ► see that part of

01:14:39 ◼   ► what Apple stands

01:14:40 ◼   ► for is compromising

01:14:41 ◼   ► their values in

01:14:42 ◼   ► order to prevent

01:14:44 ◼   ► competition and

01:14:45 ◼   ► maximize revenue and

01:14:46 ◼   ► again I'll make the

01:14:47 ◼   ► point the CEO's got

01:14:50 ◼   ► to think of the

01:14:50 ◼   ► bigger picture because

01:14:51 ◼   ► this is a real if

01:14:52 ◼   ► this stands this is

01:14:54 ◼   ► this is a completely

01:14:55 ◼   ► avoidable misstep that

01:14:57 ◼   ► will dramatically harm

01:14:58 ◼   ► their revenue and

01:14:59 ◼   ► dramatically harms

01:15:00 ◼   ► their image and

01:15:02 ◼   ► they've got a house

01:15:03 ◼   ► on fire when it

01:15:04 ◼   ► comes to how

01:15:04 ◼   ► developers feel about

01:15:05 ◼   ► them anyway and

01:15:07 ◼   ► so the problem

01:15:09 ◼   ► Mike is this is

01:15:11 ◼   ► happening simultaneously

01:15:12 ◼   ► with us being in

01:15:15 ◼   ► an era where Tim

01:15:17 ◼   ► Cook has culture

01:15:18 ◼   ► cultivated amazing

01:15:19 ◼   ► relationships with

01:15:20 ◼   ► key global players

01:15:22 ◼   ► politically and is

01:15:25 ◼   ► the master of supply

01:15:28 ◼   ► chain in general

01:15:29 ◼   ► Apple supply chain in

01:15:30 ◼   ► particular at a moment

01:15:31 ◼   ► where the supply chain

01:15:32 ◼   ► has to be reconfigured

01:15:34 ◼   ► rapidly based on

01:15:36 ◼   ► global events so

01:15:39 ◼   ► the problem if I'm

01:15:40 ◼   ► on the board is I

01:15:43 ◼   ► don't like what this

01:15:44 ◼   ► says about Tim Cook's

01:15:46 ◼   ► approach to these

01:15:47 ◼   ► areas but these

01:15:50 ◼   ► other areas is what

01:15:52 ◼   ► Tim Cook is great

01:15:54 ◼   ► at and that Apple

01:15:56 ◼   ► would be in a much

01:15:56 ◼   ► worse place if he

01:15:59 ◼   ► wasn't able to do

01:16:00 ◼   ► his magic there

01:16:01 ◼   ► yeah and so I

01:16:03 ◼   ► would be torn as a

01:16:04 ◼   ► board member about

01:16:05 ◼   ► that but I will say

01:16:06 ◼   ► this I'm not going to

01:16:08 ◼   ► go so far as to say

01:16:09 ◼   ► it's time to consider

01:16:10 ◼   ► a new CEO if I were

01:16:11 ◼   ► on the board what I

01:16:13 ◼   ► would say is I'm

01:16:15 ◼   ► troubled by this

01:16:16 ◼   ► report and the

01:16:17 ◼   ► suggestion that Apple

01:16:17 ◼   ► has lost its way

01:16:18 ◼   ► culturally and that

01:16:20 ◼   ► given that Tim is

01:16:22 ◼   ► not going to be

01:16:22 ◼   ► staying as the CEO

01:16:23 ◼   ► for 10 years or

01:16:25 ◼   ► whatever that I want

01:16:26 ◼   ► to accelerate a

01:16:28 ◼   ► clear succession

01:16:29 ◼   ► plan and say if

01:16:31 ◼   ► you've got a

01:16:32 ◼   ► favorite let's let's

01:16:33 ◼   ► name our favorite

01:16:33 ◼   ► who's going to take

01:16:34 ◼   ► over in three to five

01:16:35 ◼   ► years and let's get

01:16:37 ◼   ► that person up to

01:16:38 ◼   ► speed and let's make

01:16:39 ◼   ► that person more

01:16:40 ◼   ► visible and let's

01:16:41 ◼   ► explain to that

01:16:42 ◼   ► person as a board

01:16:43 ◼   ► what we think of as

01:16:45 ◼   ► the strengths and

01:16:46 ◼   ► weaknesses of this

01:16:47 ◼   ► along with the CEO

01:16:48 ◼   ► I would make my

01:16:49 ◼   ► displeasure known to

01:16:50 ◼   ► Tim but what I would

01:16:51 ◼   ► say is not you're

01:16:52 ◼   ► fired I would say

01:16:53 ◼   ► you need to you need

01:16:55 ◼   ► to also start

01:16:56 ◼   ► planning your and

01:16:57 ◼   ► maybe this has

01:16:58 ◼   ► already happened but

01:16:58 ◼   ► like you need to you

01:17:01 ◼   ► need to know when

01:17:02 ◼   ► you're going and it

01:17:03 ◼   ► needs to be in the

01:17:03 ◼   ► next three to five

01:17:04 ◼   ► years and we're not

01:17:06 ◼   ► gonna we don't want

01:17:07 ◼   ► you to stay beyond

01:17:07 ◼   ► that you need to step

01:17:09 ◼   ► off and and the new

01:17:11 ◼   ► person coming in needs

01:17:12 ◼   ► to know what we want

01:17:13 ◼   ► from you because this

01:17:14 ◼   ► is I think a you know

01:17:17 ◼   ► they shot themselves in

01:17:18 ◼   ► the foot here this is

01:17:19 ◼   ► this is unnecessary and

01:17:21 ◼   ► they they are going to

01:17:22 ◼   ► pay for it but I

01:17:24 ◼   ► don't think I could

01:17:25 ◼   ► say you got to go to

01:17:27 ◼   ► the guy who's kind of

01:17:28 ◼   ► holding it together

01:17:28 ◼   ► given everything else

01:17:30 ◼   ► if this was a calm

01:17:32 ◼   ► seas kind of moment

01:17:33 ◼   ► yeah I would say

01:17:34 ◼   ► maybe you've stayed

01:17:36 ◼   ► too long but it's

01:17:39 ◼   ► not a calm seas

01:17:39 ◼   ► moment this is why

01:17:40 ◼   ► I'm like I struggle

01:17:41 ◼   ► to be like I'm not

01:17:42 ◼   ► saying fire Tim

01:17:43 ◼   ► cook but I'm saying

01:17:44 ◼   ► something needs to

01:17:45 ◼   ► change because it

01:17:47 ◼   ► seems to me that the

01:17:49 ◼   ► culture is broken and

01:17:51 ◼   ► like what does that

01:17:51 ◼   ► need to be is it he

01:17:54 ◼   ► steps aside is it

01:17:55 ◼   ► they as you say like

01:17:56 ◼   ► they accelerate the

01:17:57 ◼   ► new CEO and like now

01:17:59 ◼   ► internally in the

01:18:00 ◼   ► company everybody sees

01:18:01 ◼   ► this person is like the

01:18:02 ◼   ► new light you know like

01:18:04 ◼   ► in the and we you know

01:18:04 ◼   ► we look towards them

01:18:05 ◼   ► and I will say as

01:18:06 ◼   ► well you know you're

01:18:07 ◼   ► saying about all Tim

01:18:08 ◼   ► cooks you know it

01:18:09 ◼   ► would be concerning

01:18:10 ◼   ► like he's built all

01:18:11 ◼   ► these relationships

01:18:12 ◼   ► Apple has the model

01:18:13 ◼   ► Tim Cook becomes

01:18:15 ◼   ► executive chairman or

01:18:16 ◼   ► chairman of the board

01:18:17 ◼   ► like Steve Jobs did

01:18:18 ◼   ► and then the new CEO

01:18:20 ◼   ► comes in like sure

01:18:21 ◼   ► that I think would be

01:18:23 ◼   ► the way they should do

01:18:24 ◼   ► this right to have

01:18:26 ◼   ► that like that

01:18:29 ◼   ► whenever Tim Cook does

01:18:30 ◼   ► retire I think that

01:18:31 ◼   ► that should be part of

01:18:32 ◼   ► the plan of like he's

01:18:33 ◼   ► still there he's still

01:18:35 ◼   ► visible he's still

01:18:36 ◼   ► someone that can be

01:18:37 ◼   ► called upon and then

01:18:39 ◼   ► they transition out that

01:18:40 ◼   ► way

01:18:40 ◼   ► but I agree with you in

01:18:43 ◼   ► the broader sense which

01:18:44 ◼   ► is this is the least

01:18:46 ◼   ► confident I've been in

01:18:47 ◼   ► Tim Cook seeing what's

01:18:48 ◼   ► in that document yes

01:18:49 ◼   ► makes me much less

01:18:50 ◼   ► confident in Tim Cook

01:18:52 ◼   ► as a CEO because he

01:18:54 ◼   ► he took bad advice for

01:18:57 ◼   ► the wrong reasons yeah

01:18:58 ◼   ► and applauded bad

01:19:00 ◼   ► decisions like the like

01:19:02 ◼   ► making the scare sheet

01:19:03 ◼   ► almost satirically

01:19:05 ◼   ► ludicrously scarier yeah

01:19:08 ◼   ► it and he specifically

01:19:10 ◼   ► applauded that as Phil

01:19:11 ◼   ► Schiller saying it's not

01:19:12 ◼   ► really allowed that's not

01:19:13 ◼   ► really the spirit didn't

01:19:14 ◼   ► matter he went all the

01:19:15 ◼   ► way in which suggests a

01:19:17 ◼   ► level of and this is the

01:19:18 ◼   ► thing that comes of course

01:19:19 ◼   ► they're going to appeal

01:19:19 ◼   ► because of course they're

01:19:20 ◼   ► going to appeal it's a

01:19:21 ◼   ► it's a judgment against

01:19:23 ◼   ► you you appeal it great

01:19:24 ◼   ► but like I do think that

01:19:26 ◼   ► that says something which

01:19:27 ◼   ► is that they just don't

01:19:30 ◼   ► believe that they're in

01:19:31 ◼   ► the wrong no and and

01:19:33 ◼   ► that's the problem is it's

01:19:36 ◼   ► very hard not to look at

01:19:38 ◼   ► that 70 page thing and say

01:19:40 ◼   ► you're in the wrong here and

01:19:43 ◼   ► maybe privately they're

01:19:44 ◼   ► saying we should have

01:19:45 ◼   ► listened to Phil I hope

01:19:47 ◼   ► that's what they're saying

01:19:48 ◼   ► they're definitely saying

01:19:49 ◼   ► that now like they are

01:19:50 ◼   ► saying that now I mean

01:19:51 ◼   ► maybe maybe I hope so I

01:19:54 ◼   ► hope so because that's the

01:19:55 ◼   ► only way you learn is to

01:19:56 ◼   ► be is to be in this case

01:19:57 ◼   ► brought low and told you

01:19:59 ◼   ► have to break all of these

01:20:01 ◼   ► rules that you set are just

01:20:02 ◼   ► gone because you screwed

01:20:04 ◼   ► this up like that's what you

01:20:06 ◼   ► need to hear and then

01:20:09 ◼   ► somebody needs to actually

01:20:10 ◼   ► believe it and try to

01:20:11 ◼   ► institute change and I'm

01:20:13 ◼   ► not convinced that Apple

01:20:14 ◼   ► is capable of that but

01:20:15 ◼   ► we'll see it's like I

01:20:17 ◼   ► don't I don't like

01:20:19 ◼   ► particularly begrudge

01:20:20 ◼   ► them for getting to the

01:20:21 ◼   ► point that they got to

01:20:23 ◼   ► with the but that led up

01:20:25 ◼   ► to everything before this

01:20:27 ◼   ► court case right where

01:20:29 ◼   ► like and I wouldn't have

01:20:30 ◼   ► said you should fire Tim

01:20:32 ◼   ► Cook because they wouldn't

01:20:33 ◼   ► get rid of 30 percent like

01:20:34 ◼   ► that just wasn't my feeling

01:20:35 ◼   ► the thing that that why I

01:20:38 ◼   ► feel like it should be

01:20:39 ◼   ► considered now that just

01:20:41 ◼   ► change should happen like

01:20:42 ◼   ► even if it's Tim needs to

01:20:44 ◼   ► change which I also would

01:20:45 ◼   ► like to see like he's you

01:20:46 ◼   ► know re kind of think about

01:20:48 ◼   ► how he's considering this is

01:20:49 ◼   ► that when forced to rethink

01:20:52 ◼   ► it from a legal perspective

01:20:54 ◼   ► they were like yeah but what

01:20:55 ◼   ► if we didn't though like that

01:20:57 ◼   ► was the the the prevailing

01:21:00 ◼   ► sentiment is yeah but what if

01:21:01 ◼   ► we didn't like what if we

01:21:02 ◼   ► didn't and we did everything

01:21:04 ◼   ► possible including either

01:21:08 ◼   ► asking to or encouraging

01:21:09 ◼   ► someone to lie on their

01:21:11 ◼   ► oath right like I don't

01:21:12 ◼   ► know why that happened but

01:21:13 ◼   ► there are two reasons why

01:21:14 ◼   ► that happened I don't know

01:21:15 ◼   ► which one of them it is that

01:21:17 ◼   ► this guy wanted to lie to

01:21:20 ◼   ► keep his money or it was

01:21:21 ◼   ► suggested who knows right

01:21:23 ◼   ► like I'm not going to say

01:21:24 ◼   ► either way but there's only

01:21:24 ◼   ► two ways that that kind of

01:21:25 ◼   ► thing happens or there's a

01:21:27 ◼   ► third one is like that they

01:21:28 ◼   ► really just don't remember

01:21:29 ◼   ► but I don't know about that

01:21:30 ◼   ► I do want to just before

01:21:33 ◼   ► we wrap up on this Jason

01:21:34 ◼   ► I do just want to read

01:21:35 ◼   ► because I've mentioned this

01:21:36 ◼   ► thing about the designers

01:21:38 ◼   ► right and like the

01:21:39 ◼   ► copywriting about the

01:21:40 ◼   ► scare screens I want to

01:21:41 ◼   ► read this passage from the

01:21:42 ◼   ► verge because I think it

01:21:43 ◼   ► is it shows what I'm

01:21:45 ◼   ► talking about and there's

01:21:46 ◼   ► also one paragraph at the

01:21:47 ◼   ► end which I think is just

01:21:48 ◼   ► just objectively hilarious

01:21:50 ◼   ► so a user experience

01:21:52 ◼   ► writing manager at Apple

01:21:53 ◼   ► instructed an employee to

01:21:55 ◼   ► add the phrase external

01:21:56 ◼   ► website to the screen

01:21:58 ◼   ► because it sounds quote

01:21:59 ◼   ► sounds scary so execs

01:22:01 ◼   ► will love it another

01:22:02 ◼   ► employee gave a suggestion

01:22:04 ◼   ► on how to make the

01:22:05 ◼   ► screen quote even worse

01:22:07 ◼   ► by using the developers

01:22:08 ◼   ► name rather than the app

01:22:09 ◼   ► name quote ooh keep

01:22:11 ◼   ► going another Apple

01:22:13 ◼   ► employee responded in

01:22:14 ◼   ► Slack so that is the

01:22:16 ◼   ► that's that just doesn't

01:22:17 ◼   ► I just don't like any of

01:22:18 ◼   ► that like it it's like

01:22:21 ◼   ► it's it's become fun to

01:22:22 ◼   ► make developers seem

01:22:24 ◼   ► untrustworthy right and

01:22:27 ◼   ► then carry on even cook

01:22:28 ◼   ► got in on the action when

01:22:29 ◼   ► he finally saw the screen

01:22:31 ◼   ► for approval he asked

01:22:32 ◼   ► that another warning be

01:22:33 ◼   ► added to state that

01:22:35 ◼   ► Apple's privacy and

01:22:36 ◼   ► security promises would

01:22:37 ◼   ► no longer apply on the

01:22:38 ◼   ► web and then this is the

01:22:40 ◼   ► part that I think is

01:22:40 ◼   ► hilarious in court Apple

01:22:41 ◼   ► tried to argue that the

01:22:42 ◼   ► term scary didn't

01:22:44 ◼   ► actually mean it wanted

01:22:45 ◼   ► the screen to scare

01:22:46 ◼   ► people scary it claimed

01:22:48 ◼   ► was quote a term of art

01:22:50 ◼   ► an industry term with

01:22:51 ◼   ► specialized meaning in

01:22:53 ◼   ► fact the company claimed

01:22:54 ◼   ► scary meant raising

01:22:55 ◼   ► awareness and caution the

01:22:57 ◼   ► court did not buy it

01:22:58 ◼   ► saying the argument

01:22:59 ◼   ► strained common sense

01:23:00 ◼   ► yeah we're all talking

01:23:01 ◼   ► about that like scary

01:23:02 ◼   ► design you know it's a

01:23:03 ◼   ► new responsive design

01:23:04 ◼   ► scary design and it just

01:23:06 ◼   ► means consumer privacy

01:23:07 ◼   ► scary design yeah it

01:23:09 ◼   ► started with the spice

01:23:10 ◼   ► girls and it's just gone

01:23:11 ◼   ► on from there consumer

01:23:12 ◼   ► consumer spice oh boy

01:23:15 ◼   ► well yeah here we are

01:23:18 ◼   ► yeah they also they also

01:23:19 ◼   ► say things are sporty

01:23:20 ◼   ► yeah or ginger I mean it's

01:23:23 ◼   ► just a thing that happens

01:23:24 ◼   ► tech I'm surprised people

01:23:25 ◼   ► more people don't know

01:23:26 ◼   ► this that most things

01:23:28 ◼   ► in tech are described by

01:23:29 ◼   ► spice girls sporty

01:23:30 ◼   ► design yeah yeah well I'm

01:23:33 ◼   ► looking forward to the to

01:23:35 ◼   ► the posh redesign and in

01:23:38 ◼   ► June yeah let's do it

01:23:39 ◼   ► this episode is brought to

01:23:42 ◼   ► you by delete me delete me

01:23:44 ◼   ► makes it easy quick and

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01:23:54 ◼   ► about people online

01:23:55 ◼   ► having your address phone

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01:23:58 ◼   ► names hanging out on the

01:23:59 ◼   ► internet can have

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01:24:21 ◼   ► the information that I

01:24:22 ◼   ► don't want to be online

01:24:23 ◼   ► and this isn't just

01:24:25 ◼   ► because I mean for me I

01:24:27 ◼   ► love it because I am a

01:24:29 ◼   ► public person who likes

01:24:32 ◼   ► some of their life to

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01:24:35 ◼   ► if I wasn't this is

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01:24:36 ◼   ► want for the reasons of

01:24:38 ◼   ► like your information can

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01:25:15 ◼   ► I'm going to read that

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01:25:31 ◼   ► are thanks to delete me

01:25:32 ◼   ► for their support of this

01:25:33 ◼   ► show and relay

01:25:35 ◼   ► Jason hit me with the

01:25:36 ◼   ► jingle

01:25:45 ◼   ► money money money money

01:25:47 ◼   ► money money who has all

01:25:49 ◼   ► the money it's apple for

01:25:54 ◼   ► now all right so it's

01:25:56 ◼   ► apple earning it's apple

01:26:00 ◼   ► earnings time awkward it

01:26:02 ◼   ► was the next day pretty

01:26:03 ◼   ► awkward all right let me

01:26:07 ◼   ► run through the top line

01:26:08 ◼   ► revenue 95.4 billion dollars

01:26:11 ◼   ► up 5% year over year this is

01:26:14 ◼   ► overall revenue mac was at

01:26:16 ◼   ► 7.9 billion up 7% ipad was

01:26:20 ◼   ► 6.4 billion up 15% the

01:26:22 ◼   ► iphone was 46.8 billion up

01:26:26 ◼   ► 2% services up 12% at 26.6

01:26:30 ◼   ► billion and wearables home

01:26:32 ◼   ► accessories it's the ugly

01:26:34 ◼   ► stepchild 7.5 billion dollars

01:26:36 ◼   ► down 5% you did a really good

01:26:41 ◼   ► article on six colors that I

01:26:43 ◼   ► enjoyed where you were like

01:26:45 ◼   ► all right thank you let's

01:26:47 ◼   ► actually look at the the

01:26:49 ◼   ► headlines here and what is

01:26:50 ◼   ► really going on I know you

01:26:52 ◼   ► sometimes on this piece on

01:26:53 ◼   ► mac world but yeah they don't

01:26:55 ◼   ► want it anymore so I write it

01:26:56 ◼   ► here now and I really liked

01:26:58 ◼   ► it I thought it I thought it

01:26:59 ◼   ► had a different kind of vibe

01:27:01 ◼   ► than the one that you

01:27:01 ◼   ► usually do and I found it

01:27:04 ◼   ► really useful I put more

01:27:05 ◼   ► jokes in it Mike I put you

01:27:06 ◼   ► know what it's probably why I

01:27:08 ◼   ► liked it it's just written more

01:27:09 ◼   ► like you right it's because

01:27:11 ◼   ► what the six colors voice is

01:27:12 ◼   ► different to the mac cord voice

01:27:13 ◼   ► as it should be because it's

01:27:16 ◼   ► not your publication right you

01:27:17 ◼   ► kind of they have a style that

01:27:19 ◼   ► you fit within when you're there

01:27:20 ◼   ► but I'm gonna there's a bunch of

01:27:24 ◼   ► things that you pointed out in

01:27:25 ◼   ► here but like essentially the

01:27:27 ◼   ► things that I found interesting

01:27:28 ◼   ► thing is that iPhone revenue has

01:27:29 ◼   ► been flat for the last three

01:27:31 ◼   ► years an iPad is up 15% and

01:27:35 ◼   ► it's four straight quarters of

01:27:37 ◼   ► growth after being down for nine

01:27:39 ◼   ► out of ten previous quarters and I

01:27:42 ◼   ► for the iPad specifically I don't

01:27:45 ◼   ► feel like I can really put my

01:27:46 ◼   ► finger on why it's so successful

01:27:49 ◼   ► right now I mean they're ship I

01:27:51 ◼   ► can they're shipping new iPads but

01:27:53 ◼   ► they've always ship new iPads no

01:27:56 ◼   ► but there was a year where they

01:27:57 ◼   ► didn't but that's that's that's

01:27:58 ◼   ► more than nine out of ten

01:27:59 ◼   ► quarters though right that's what

01:28:01 ◼   ► I mean it's like I know there

01:28:02 ◼   ► was a year where they didn't but

01:28:03 ◼   ► like I don't know it's hard it's

01:28:05 ◼   ► hard to I think my argument is

01:28:08 ◼   ► there was a pandemic high where

01:28:10 ◼   ► they sold a lot then there was a

01:28:11 ◼   ► drop-off after that because they

01:28:12 ◼   ► had they had sold a lot to the

01:28:14 ◼   ► people who were going to

01:28:15 ◼   ► probably buy one in the next

01:28:16 ◼   ► year then they didn't release an

01:28:18 ◼   ► iPad for a whole year and now

01:28:20 ◼   ► that bar is low enough that by

01:28:22 ◼   ► releasing iPads in a regular

01:28:23 ◼   ► schedule they can be higher sales

01:28:26 ◼   ► numbers than the year where they

01:28:28 ◼   ► didn't release any iPads so I

01:28:30 ◼   ► think that's actually what's going

01:28:31 ◼   ► on here but yeah the net result is

01:28:32 ◼   ► they had a really huge spike with

01:28:34 ◼   ► COVID and then they kind of like

01:28:36 ◼   ► fell off for the following couple

01:28:39 ◼   ► of years and now they have a

01:28:40 ◼   ► little bit of a resurgence which I

01:28:42 ◼   ► do think that those are the two

01:28:43 ◼   ► things going in there is there they

01:28:45 ◼   ► they had their year of no iPads and

01:28:47 ◼   ► they had the year where they were

01:28:48 ◼   ► coming off the high of of COVID and

01:28:51 ◼   ► that that's why okay that's fair

01:28:54 ◼   ► I think wearables 5% drop year over

01:28:59 ◼   ► year in line with the last seven

01:29:02 ◼   ► quarters which showed revenue drops

01:29:04 ◼   ► yeah what's and it's and it's

01:29:08 ◼   ► actually 10 of the last 12 quarters

01:29:11 ◼   ► have been down what's going on here

01:29:15 ◼   ► well I laughed out loud when Apple

01:29:20 ◼   ► said that it was a difficult compare

01:29:21 ◼   ► with last year because last year

01:29:25 ◼   ► they introduced the Vision Pro

01:29:26 ◼   ► although I have to say if you do the

01:29:31 ◼   ► math and multiply a hundred thousand

01:29:35 ◼   ► or whatever it was two hundred thousand

01:29:37 ◼   ► by thirty five hundred you can you can

01:29:41 ◼   ► get that nine hundred or four hundred

01:29:44 ◼   ► thousand four hundred million drop off

01:29:46 ◼   ► you can get it if Apple sold one hundred

01:29:47 ◼   ► and fifteen thousand more Vision Pros

01:29:50 ◼   ► last Q2 than this Q2 that would

01:29:53 ◼   ► actually account for it I'm sure it's

01:29:55 ◼   ► not all Vision Pro but like it doesn't

01:29:58 ◼   ► take that much to to account for that

01:30:00 ◼   ► drop in revenue and then the other

01:30:02 ◼   ► thing that they also I lifted my

01:30:04 ◼   ► eyebrow at was they mentioned the Ultra

01:30:06 ◼   ► 2 Apple Watch that's like okay the Ultra

01:30:09 ◼   ► 2 Apple Watch was for sale in Q2 last

01:30:12 ◼   ► year but it had been for sale for four

01:30:17 ◼   ► months prior to that and so but I

01:30:23 ◼   ► actually I actually don't doubt though

01:30:25 ◼   ► I honestly I don't doubt the fact that

01:30:27 ◼   ► there is a an aging curve of any Apple

01:30:29 ◼   ► product and that when you're in month

01:30:31 ◼   ► four versus when you're in month 16 that

01:30:35 ◼   ► month four sells more than month 16 I I

01:30:38 ◼   ► don't doubt that they sold more more

01:30:40 ◼   ► Ultra 2s last year than they would this

01:30:43 ◼   ► year when it's an old product and

01:30:46 ◼   ► there's probably an Ultra 3 coming in the

01:30:47 ◼   ► fall I don't doubt it I just find it

01:30:49 ◼   ► very funny that their difficult compare

01:30:51 ◼   ► is a four-month-old watch and the Vision

01:30:54 ◼   ► Pro but that's where wearables home and

01:30:57 ◼   ► accessories is right now which is why I

01:30:59 ◼   ► referred to it as the ugly dog in these

01:31:02 ◼   ► results it's like oh I mean I love you

01:31:05 ◼   ► but oh you don't look that great that

01:31:08 ◼   ► that's what's going on here you seem

01:31:09 ◼   ► very nice but but also you know you

01:31:11 ◼   ► wouldn't win a contest or anything right

01:31:14 ◼   ► now that's where wearables is I think

01:31:16 ◼   ► personally my theory is this category is

01:31:19 ◼   ► driven almost entirely by the iPod or by

01:31:22 ◼   ► AirPods Pro yeah and they have and they

01:31:24 ◼   ► haven't been around and they haven't been

01:31:26 ◼   ► updated in ages and that when they do a

01:31:29 ◼   ► new AirPods Pro that they'll get a big

01:31:31 ◼   ► boost in this category but also that it's

01:31:33 ◼   ► just kind of flat to down and that's

01:31:34 ◼   ► just where they are right now I can't

01:31:36 ◼   ► I can't get I cannot get my head around

01:31:38 ◼   ► the Apple Watch Ultra 2 being brought up

01:31:40 ◼   ► I thought right how much of a Mike how

01:31:43 ◼   ► much though like what you're saying

01:31:46 ◼   ► people don't like the black one is that

01:31:48 ◼   ► what you're saying because there's a new

01:31:49 ◼   ► black one I think they looked at the

01:31:53 ◼   ► four hundred thousand dollar or sorry

01:31:57 ◼   ► four hundred million dollar difference

01:31:58 ◼   ► between Q2 last time it was seven point

01:32:01 ◼   ► nine billion out of seven point five

01:32:03 ◼   ► billion so four hundred million dollars

01:32:05 ◼   ► and they looked at well why is that why

01:32:08 ◼   ► we need an excuse and they looked and

01:32:11 ◼   ► they said well actually if you add Vision

01:32:12 ◼   ► Pro and Ultra 2 you got all of it and

01:32:17 ◼   ► somebody with like a green eye shade in a

01:32:19 ◼   ► back room somewhere back behind where

01:32:20 ◼   ► Luca and his senior executives were all

01:32:23 ◼   ► conspiring is it green because of money

01:32:27 ◼   ► is that why he's just got like a little

01:32:29 ◼   ► adding machine and a green eye shade and

01:32:31 ◼   ► he's doing long division and all that

01:32:32 ◼   ► somebody in the back room when you said

01:32:34 ◼   ► I think you meant makeup no no no not

01:32:38 ◼   ► eyeshadow when I say you got to have the

01:32:40 ◼   ► green eye shade because it makes

01:32:41 ◼   ► everything look like money it tints

01:32:43 ◼   ► everything green like money get it I get

01:32:45 ◼   ► it and he's back there counting pennies

01:32:47 ◼   ► and doing whatever click click click on

01:32:50 ◼   ► the adding machine and all that and goes

01:32:51 ◼   ► ah I got it if you add these two things

01:32:53 ◼   ► together it makes it a difficult compare

01:32:55 ◼   ► and and the Kevin Parick the new CFO is

01:32:59 ◼   ► like great that's what I'll say and so

01:33:00 ◼   ► that's what they said is well boy it was

01:33:04 ◼   ► tough this year no vision no new Vision

01:33:06 ◼   ► Pro no new Apple Watch Ultra really

01:33:09 ◼   ► saddled that category down I'm like okay

01:33:11 ◼   ► I mean I think it's technically true but

01:33:13 ◼   ► what a weird case to make but it just

01:33:15 ◼   ► it's weird weird I mean I just just say

01:33:19 ◼   ► vision pro I know but they had to throw

01:33:22 ◼   ► an ultra 2 as well just say vision pro

01:33:26 ◼   ► like are they are they mad because there

01:33:28 ◼   ► was some executive was like let's not do

01:33:29 ◼   ► an ultra 3 this year and they're like oh

01:33:31 ◼   ► how dare you I'm gonna show you like I

01:33:34 ◼   ► just feel like they obviously do not need

01:33:37 ◼   ► to they don't need to Apple's kind of

01:33:41 ◼   ► constructed their earnings call in such a

01:33:42 ◼   ► way that they don't need to tell you

01:33:43 ◼   ► anything they don't want to tell you

01:33:45 ◼   ► right and so like I just don't know

01:33:46 ◼   ► why I mean it helps us save face a

01:33:49 ◼   ► little bit if they're like oh yeah man

01:33:51 ◼   ► vision pro made us so much money now we

01:33:53 ◼   ► don't have the new like it's a I just I

01:33:55 ◼   ► just find ultra 2 being brought up there

01:33:58 ◼   ► to be very curious yeah right I mean

01:34:01 ◼   ► because it wasn't this is the thing

01:34:02 ◼   ► tough a tough compare a difficult compare

01:34:05 ◼   ► that they talk about all the time usually

01:34:08 ◼   ► it's about a product that launched but

01:34:11 ◼   ► they bring up the ultra 2 and it's like

01:34:12 ◼   ► really the ultra 2 didn't do as well

01:34:15 ◼   ► this year as it did last spring after

01:34:18 ◼   ► it already had been out since September

01:34:20 ◼   ► what and also like the ultra 2 I don't

01:34:25 ◼   ► know I can't get this out of my head now

01:34:27 ◼   ► the ultra 2 was like not even really a

01:34:30 ◼   ► good upgrade from the oh no like I bought

01:34:32 ◼   ► it because I've been waiting but like it

01:34:34 ◼   ► added like one sensor it wasn't even a

01:34:37 ◼   ► helpful sensor if I remember I can't even

01:34:40 ◼   ► remember what it was now but it's like

01:34:41 ◼   ► it was it's just like such a peculiar

01:34:43 ◼   ► product to bring up like why not bring up

01:34:47 ◼   ► the fact that you have not updated

01:34:49 ◼   ► AirPods Pro which is obviously all this

01:34:51 ◼   ► is weird I don't know very weird just

01:34:55 ◼   ► weird just weird look look there's very

01:34:58 ◼   ► little when they do these things you got

01:35:01 ◼   ► to glean what you can because there's so

01:35:02 ◼   ► much of it that is is just sort of

01:35:05 ◼   ► boilerplate and almost marketing but that

01:35:07 ◼   ► one yeah that one step just I was struck

01:35:10 ◼   ► by that just vision it's a tough compare

01:35:12 ◼   ► because a vision pro and Apple watch

01:35:13 ◼   ► ultra 2 okay I guess strange there were

01:35:20 ◼   ► they didn't if they didn't really talk

01:35:22 ◼   ► about the the the legal stuff right on the

01:35:28 ◼   ► earnings that not very much no this is the

01:35:31 ◼   ► line that I thought I mean so Tim Cook

01:35:33 ◼   ► said we strongly disagree with it we've

01:35:35 ◼   ► complied with the court's order and we're

01:35:36 ◼   ► gonna appeal which is of course he says

01:35:39 ◼   ► that but I thought it was you know it's I

01:35:41 ◼   ► think it's BS but that's what he has to

01:35:42 ◼   ► say fine but what he didn't do is say it's

01:35:47 ◼   ► not gonna matter don't worry about it

01:35:48 ◼   ► instead he said we are monitoring these

01:35:50 ◼   ► closely but as you point out there's risk

01:35:52 ◼   ► associated with them the Google case as

01:35:54 ◼   ► well as the epic case and the outcome is

01:35:56 ◼   ► unclear which I would say it is so at

01:35:59 ◼   ► least he had that in there that this is

01:36:01 ◼   ► not they're not they're not take they're

01:36:04 ◼   ► not taking it lightly nor should they I

01:36:06 ◼   ► feel like it would have been made more of

01:36:08 ◼   ► a thing if tariffs weren't also in

01:36:10 ◼   ► conversation so I've got a good quote

01:36:12 ◼   ► here and some information so Tim Cook

01:36:14 ◼   ► said that for the June quarter we expect

01:36:17 ◼   ► the majority of iPhones sold in the US will

01:36:20 ◼   ► have India as their country of origin and

01:36:22 ◼   ► Vietnam to be the country of origin for

01:36:24 ◼   ► almost all iPad Mac Apple watch and

01:36:27 ◼   ► Airpods products also sold in the US

01:36:29 ◼   ► Chinese made products would be sold

01:36:31 ◼   ► everywhere else and Apple said that they

01:36:33 ◼   ► expect to lose around 900 million dollars

01:36:36 ◼   ► in the next quarter due to tariff

01:36:38 ◼   ► implications which that number is large

01:36:42 ◼   ► but as you very astutely pointed out the

01:36:45 ◼   ► this quarter was 85.8 billion that they're

01:36:49 ◼   ► good that sorry the the quarter that

01:36:51 ◼   ► they're going to be comparing against was

01:36:53 ◼   ► an 85.8 billion quarter that they say

01:36:55 ◼   ► they're gonna they're expecting to beat so

01:36:57 ◼   ► yeah so it's it's a yeah 900 million

01:37:00 ◼   ► seems large until you realize it's going

01:37:02 ◼   ► to be a beat on 86 billion and they're

01:37:05 ◼   ► going to just take you know 0.9 back from

01:37:09 ◼   ► that it's not massive they could do that I

01:37:13 ◼   ► think the challenge is what happens after

01:37:15 ◼   ► that and the thing is Wall Street wants

01:37:19 ◼   ► certainty right that's what they like they

01:37:20 ◼   ► don't like to be surprised they want

01:37:21 ◼   ► certainty and the problem with all of

01:37:24 ◼   ► this is as Tim Cook says nobody knows

01:37:27 ◼   ► right like nobody knows he says we'll be

01:37:29 ◼   ► thoughtful we'll manage the company we'll

01:37:31 ◼   ► focus on the long term dedicated to

01:37:33 ◼   ► innovation right all those things is like

01:37:35 ◼   ► great but like that's all he can say is

01:37:37 ◼   ► like look we'll we'll try our best to

01:37:39 ◼   ► weather this but he can't say it's not

01:37:41 ◼   ► going to be a problem because nobody

01:37:43 ◼   ► knows it is a problem it's just how it is

01:37:46 ◼   ► a problem right yeah data that's 900

01:37:49 ◼   ► million dollars they weren't expecting to

01:37:51 ◼   ► not have right that's again it's like even

01:37:54 ◼   ► to a company that makes the money that

01:37:56 ◼   ► they make I'm sure that they could use a

01:38:00 ◼   ► billion dollars right that they would use

01:38:02 ◼   ► it on something I don't know what it would

01:38:04 ◼   ► be but they would use it on something and

01:38:07 ◼   ► who knows what the potential knock-on

01:38:10 ◼   ► effects of doing what they have to do is we

01:38:13 ◼   ► don't know like there could be knock-on

01:38:15 ◼   ► effects that they can't even perceive of

01:38:16 ◼   ► yet like we were just talking about it

01:38:18 ◼   ► last time right of like how how ready are

01:38:23 ◼   ► these manufacturing pipelines for what is

01:38:26 ◼   ► now being thrown at them were they that

01:38:29 ◼   ► ready like are they going to be ready like

01:38:31 ◼   ► what is the is there going to be you know

01:38:33 ◼   ► like for the iPhone this year will America

01:38:37 ◼   ► have less units available for launch day

01:38:42 ◼   ► than they would have right we don't we

01:38:45 ◼   ► don't I'm not saying this will be the

01:38:47 ◼   ► case but there are knock-on effects they

01:38:49 ◼   ► also kind of wouldn't it were asked right

01:38:51 ◼   ► if they remember right they were asked

01:38:53 ◼   ► and didn't really say much about if

01:38:55 ◼   ► prices were going to change it's kind of

01:38:57 ◼   ► just like hey who knows man have to wait

01:38:59 ◼   ► and see like for customers no there's

01:39:01 ◼   ► nothing about it because I don't think

01:39:02 ◼   ► they know yet right like nobody knows

01:39:05 ◼   ► right it's like even I'm sure they've got

01:39:07 ◼   ► lots of contingency plans but you can't

01:39:09 ◼   ► say here are various contingency plans

01:39:11 ◼   ► you basically say we don't know we'll

01:39:12 ◼   ► see we're gonna like what Tim Cook said

01:39:14 ◼   ► which is like we're gonna keep doing our

01:39:17 ◼   ► thing and monitor everything closely but

01:39:19 ◼   ► that is not like that is and the analyst

01:39:21 ◼   ► did say like you have any color on like

01:39:24 ◼   ► the rest of the year and and they're like

01:39:26 ◼   ► we told you about the next three months

01:39:28 ◼   ► that's it that's all we're willing to do

01:39:30 ◼   ► and even there they're like by the way

01:39:32 ◼   ► this is an assumption that nothing

01:39:33 ◼   ► changes over the next the rest of the

01:39:35 ◼   ► next two months I guess left in this

01:39:37 ◼   ► quarter if something changes it'll be

01:39:39 ◼   ► different like the nine the 900 million

01:39:41 ◼   ► is only if things stay the way they

01:39:43 ◼   ► are today or last week and like when has

01:39:47 ◼   ► anything in the last five months stayed

01:39:49 ◼   ► the way it is today like it just doesn't

01:39:52 ◼   ► happen so we'll see yep yeah it was an

01:39:55 ◼   ► interesting it was interesting earnings

01:39:57 ◼   ► also on Apple intelligence Tim Cook said

01:39:59 ◼   ► we need more time to complete our work on

01:40:01 ◼   ► these features so they meet our high

01:40:03 ◼   ► quality bar we are making progress and

01:40:06 ◼   ► we look forward to getting these

01:40:07 ◼   ► features into customers hands not much of

01:40:09 ◼   ► a statement but no he did say they're

01:40:12 ◼   ► still working on those features yeah and

01:40:15 ◼   ► and again clearly it's like they weren't

01:40:17 ◼   ► good enough high quality meet our high

01:40:20 ◼   ► quality bar is a very weird like that's

01:40:22 ◼   ► you don't meet the bar you clear the bar I

01:40:24 ◼   ► don't raise the bar but you don't meet

01:40:25 ◼   ► the bar whatever but it's okay like also I

01:40:30 ◼   ► I wanted to shout out one of the analysts

01:40:34 ◼   ► on this call so there's a bunch of

01:40:36 ◼   ► analysts there they're like characters in

01:40:37 ◼   ► a weird sitcom that only airs every three

01:40:39 ◼   ► months one of them is a guy named Richard

01:40:42 ◼   ► Kramer at a REIT research and he had the

01:40:47 ◼   ► line of the whole thing which is when

01:40:49 ◼   ► they because they say okay we'll take our

01:40:51 ◼   ► next question please and then the operator

01:40:53 ◼   ► comes on to the next question is from

01:40:55 ◼   ► Richard Kramer from a REIT research and

01:40:57 ◼   ► then there's the like clicks and pops

01:40:59 ◼   ► and then and then you hear the voice of

01:41:00 ◼   ► somebody else on the call and they say

01:41:02 ◼   ► oh Tim Kevin thanks for taking my call

01:41:05 ◼   ► and he says I'm not gonna ask about

01:41:08 ◼   ► tariffs because literally every question

01:41:11 ◼   ► up to that point had been about tariffs

01:41:12 ◼   ► and Kramer's like I'm not gonna ask

01:41:14 ◼   ► about tariffs and you know what I feel

01:41:16 ◼   ► like in that moment the Apple people were

01:41:18 ◼   ► probably like oh thank God we don't want

01:41:19 ◼   ► to hear about tariffs anymore and then he

01:41:21 ◼   ► asked two questions his two questions

01:41:23 ◼   ► were so you failed to ship that Apple

01:41:26 ◼   ► intelligence feature set that you were

01:41:28 ◼   ► talking about what's up with that and they

01:41:31 ◼   ► said well it didn't meet the high quality

01:41:32 ◼   ► bar but we are making progress and we're

01:41:33 ◼   ► gonna get those into customers hands and

01:41:35 ◼   ► then his follow-up question was so all

01:41:38 ◼   ► these court rulings against you the one

01:41:40 ◼   ► yesterday the Google thing where you've

01:41:42 ◼   ► got all that money in search referrals

01:41:43 ◼   ► what's up with that and they're like uh

01:41:45 ◼   ► this thing and I just like I don't know

01:41:48 ◼   ► if he's gonna get invited back uh he I gave

01:41:52 ◼   ► him a gold star basically in my column I

01:41:54 ◼   ► actually got an email from Richard Kramer

01:41:56 ◼   ► who was like thanks

01:41:56 ◼   ► I've just googled Richard Kramer and then

01:42:01 ◼   ► because I just like I like you like what

01:42:04 ◼   ► are you all about you know I got I mean I

01:42:05 ◼   ► don't want to reveal too much but I will

01:42:07 ◼   ► say I got a LinkedIn message from

01:42:08 ◼   ► Richard Kramer which is the most analyst

01:42:11 ◼   ► thing possible but like at least he asked

01:42:14 ◼   ► these quite like imagine going through this

01:42:16 ◼   ► whole phone call without without giving it

01:42:18 ◼   ► away was which Richard Kramer happy to be

01:42:21 ◼   ► mentioned in the article yes oh yeah no he

01:42:23 ◼   ► was very appreciative of I love that oh my

01:42:25 ◼   ► god that's so funny but but like can you

01:42:29 ◼   ► imagine going through this whole thing

01:42:30 ◼   ► without anybody asking about them failing

01:42:32 ◼   ► with Apple intelligence stuff and being in

01:42:34 ◼   ► all this peril in courts like somebody needs

01:42:37 ◼   ► to ask that question so they did let Richard

01:42:40 ◼   ► Kramer ask those questions and they had

01:42:43 ◼   ► their little statements about it but I'm

01:42:45 ◼   ► glad somebody did because every I mean

01:42:47 ◼   ► tariffs is big and people need to ask

01:42:48 ◼   ► about tariffs but I just laughed out loud

01:42:50 ◼   ► when he said I'm not going to ask about

01:42:52 ◼   ► tariffs I'm like oh man here we go

01:42:53 ◼   ► something that is not another question

01:42:56 ◼   ► trying to get them to say anything

01:42:58 ◼   ► resembling anything about tariffs which you

01:43:01 ◼   ► know they don't want to do so thumbs up

01:43:04 ◼   ► to Richard Kramer good job and then the

01:43:07 ◼   ► only other detail which probably was known

01:43:09 ◼   ► but I they kept talking about oh you know

01:43:11 ◼   ► we love the US it's one of those right

01:43:13 ◼   ► like we love the US Tim Cook twice listed

01:43:15 ◼   ► listed off all of the states that are in

01:43:17 ◼   ► that February press release about their

01:43:19 ◼   ► US investment of five hundred billion

01:43:21 ◼   ► dollars they'd list all those states got

01:43:23 ◼   ► listed multiple times there's a list Tim

01:43:25 ◼   ► Cook's got it right in front of him taped

01:43:27 ◼   ► down that says Michigan Texas California

01:43:29 ◼   ► Arizona Nevada Iowa Oregon North Carolina

01:43:31 ◼   ► and Washington there it is sounds like

01:43:33 ◼   ► one of those songs that you learn in

01:43:35 ◼   ► school mm-hmm that's right and the part

01:43:39 ◼   ► that I thought was an interesting detail

01:43:41 ◼   ► probably already known but I thought it

01:43:42 ◼   ► was very specific which is the TSMC project

01:43:45 ◼   ► in Arizona he said we're going to get tens

01:43:48 ◼   ► of millions of advanced chips from that and

01:43:50 ◼   ► they are going to be systems on a chip

01:43:52 ◼   ► they're SOCs and he said we are the

01:43:54 ◼   ► largest and first company getting product

01:43:55 ◼   ► out of that now they're not cutting edge

01:43:57 ◼   ► their legacy notes but it is there's going

01:44:01 ◼   ► to be stuff in I don't know the next Apple

01:44:02 ◼   ► TV that little that home thing some other

01:44:05 ◼   ► low-end Apple products that are not using

01:44:07 ◼   ► the latest and greatest hottest TSMC

01:44:09 ◼   ► processes will be processed will be powered

01:44:13 ◼   ► by chips fabbed in Arizona by TSMC so you

01:44:19 ◼   ► know I don't know there was what a week

01:44:21 ◼   ► Mike and what a whiplash from the judges

01:44:23 ◼   ► report the day before to then that that I

01:44:26 ◼   ► was wondering if they were would say would

01:44:28 ◼   ► have like a comment on it and instead it

01:44:30 ◼   ► was sort of just this mild answer to a

01:44:32 ◼   ► Richard Kramer question at the end so yeah

01:44:34 ◼   ► yeah they were just hoping like oh no one's

01:44:36 ◼   ► gonna bring this up everyone's gonna be too

01:44:38 ◼   ► focused on tariffs but we can always rely on

01:44:41 ◼   ► Richard Kramer I assume those analysts

01:44:44 ◼   ► have their questions like vetted beforehand

01:44:47 ◼   ► by Apple and like but I don't know I don't

01:44:51 ◼   ► know I didn't ask Richard Kramer that but

01:44:53 ◼   ► I'm glad they invited him because somebody

01:44:55 ◼   ► had to ask those questions big episode I

01:44:59 ◼   ► think we'll we'll come back to ask upgrade

01:45:01 ◼   ► next week because we've we've run very long

01:45:03 ◼   ► give the lasers the week off that's fine yeah so

01:45:06 ◼   ► you can send us your questions by going to

01:45:09 ◼   ► upgrade feedback dot com you get your question

01:45:11 ◼   ► in for next week it was similarly if you have

01:45:12 ◼   ► any feedback or follow-up please send them in

01:45:14 ◼   ► there I want to thank our members who support us

01:45:17 ◼   ► of upgrade plus go to get upgrade plus dot com

01:45:20 ◼   ► and you will get longer ad free versions of the

01:45:22 ◼   ► show each and every week you can find this show

01:45:25 ◼   ► on YouTube by searching for upgrade podcast and

01:45:28 ◼   ► I want to thank our sponsors again for this

01:45:30 ◼   ► episode that is delete me squarespace and

01:45:32 ◼   ► Oracle but most of all I want to thank you for

01:45:35 ◼   ► listening we'll be back next time until then

01:45:38 ◼   ► say goodbye Justin Snell goodbye Mike Hurley

01:45:41 ◼   ► you