The iPhone's Last Stand?

stratechery.com

190 points by swolpers 4 days ago


827a - 4 days ago

You cannot trust companies to communicate an unbiased vision of the future, because they will always build what they're capable of selling. Microsoft and Meta are incapable of selling phones and laptops; they're certainly capable of building them, but few people will buy them. So instead Meta builds smart-glasses and Microsoft presents this weird vision of "connected thin devices" by keeping the hardware itself very abstract and unknowable. The hardware doesn't matter to Microsoft, not because the hardware doesn't actually matter, but because it cannot matter, because Microsoft cannot win in hardware. Its not a vision of the future; its a vision of what Microsoft can meaningfully sell. Microsoft can meaningfully sell their weird constellation of 365 subscriptions that no one knows what they do or if they remotely do what you buy them for; thus their marketing now wears that idea of "unknowable capability" like a mask.

saberience - 4 days ago

Last Stand? This is rather strong language and overselling the situation, for clicks I guess.

You might re-title the article instead, "The iPhone holds its ground", and it would be a more realistic title. But perhaps garnering less clicks.

I've always thought Ben Thompson is strong on enterprise and b2b topics but super weak on everything consumer related, he simply doesn't seem to understand consumer behavior (he has zero empathy or ability to project his mind into the average person's mind)

E.g. Ben was sure iPhone air would be a massive hit because he himself loved it. (It's struggled as people don't like the smaller battery life).

Ben was sure the Vision Pro would be a huge hit because he himself loved it. (It was a total failure as the average person doesnt want to pay huge amounts for a ridiculous looking dork helmet).

Ben raving about Meta's hand controller which he was sure was going to be the future of consumer electronics (The Neural Band). He was discussing how you could use it while your hand is in your jeans/pants pocket. Not quite thinking about how this would look while you're sat on the subway with someone sat opposite you.

Ben discussing how the future of watching sports is in VR. Not considering how weird it would be to go to a friends house to watch the game and everyone has their own VR headset. Also not considering the fun of watching sports is doing it with other people.

Basically, he has a huge issue with extracting his own liking of techy products to the average consumer who are basically nothing like Ben Thompson.

economistbob - 4 days ago

They see "thin is in" and I see remote servers now watching everything on your screen or within audio visual range. Eventually the only jobs will be at the intel agencies watching the data feeds from all the rabble so they can ascertain who is mouthy enough to whack and charge the others by the word for what used to be processed locally for free.

Of all the things they could build, why must they pick this future...

w10-1 - 3 days ago

What does it mean to say Apple is behind in AI or back in 2024, when Apple is not trying to build AI models, and no one else is nearly as evolved as their local architecture?

Is Microsoft's device "vaporware" even comparable to a live demo?

iPhone AI comes via AI-safe pipes: private by design, on device or not, accelerated via MLX. Given that vectoring an AI request to GPU/NPU/CPU/private cloud takes non-trivial engineering, is anyone else as advanced as Apple? It seems wishful to believe interactive UI's will be superseded by untethered, non-interactive (pay by the token) workflows.

iPhone AI is last-mile; the value depends entirely on what you're trying to do. Apple can demo features for their own apps (esp. with personal knowledge), but the real question is what independent developers can do with Apple pipes.

He can say enterprise (not consumers) is the only way to recoup the Nvidia capex, but free local coding models run well enough now on mid-range Apple Macs to make me doubt the business model of Anthropic, OpenAI, and Microsoft, and the upside for Nvidia.

I'm glad Apple will be investing that capex into their own chips.

QuadmasterXLII - 4 days ago

i was under the impression that the 2024 apple intelligence rollout was something of a victory: Apple realized that the majority of people don't actually want this stuff forced on them at the os level, and the ai maximalists all used apple anyways via clawbot (including purchasing an additional apple device, the mini!) because of apples non-ai-specific commitment to phone computer interop.

Certainly the copilot button in ms paint did nothing to attract the clawbot ecosystem to windows

billdybas - 4 days ago

What I don't see anyone talking about is how Private Cloud Compute is behind an iCloud subscription.

From what I can tell, this means any app that is using their foundation model is sharing against a user's pooled usage quota & Apple takes all the revenue upside if a user chooses to upgrade their plan.

Why would an app developer choose their model which has a minuscule 32K context window, might get throttled because of usage in another app, and doesn't share revenue over any frontier model vendor (where you can package/pass along token costs to your customers)?

_HMCB_ - 4 days ago

Long-winded article. I’ll give you my take: people like their phones. They identity with them. It’s a singular piece of tech that isn’t cumbersome. It does multiple things well and sometimes at once. Why would I want a duplicity of devices to do similar things at the cost of more stuff?! Answer me that riddle.

Aperocky - 4 days ago

> Microsoft put forth a vision for a new ecosystem of hardware devices under the banner of Project Solara

While I don't necessarily disagree with their vision but if implemented like "Copilot for Windows" I don't see me or anyone wanting to go anywhere near it.

Apple being slow is just fine, at least they didn't launch "Copilot for Mac".

Sometimes the lack of certain feature is the feature.

mg - 4 days ago

    you will be surrounded by an ecosystem of
    devices, none of which stand alone, but are
    more like portals to interact with your agents
I would be really happy with my phone + headphones as the device I use most. But only if I could use Gemini (or ChatGPT or Grok or any other chat agent) in voice mode and say "SSH into my GitHub Codespace soandso and implement feature soandso.". And it replies "Did it. I told copilot (or codex or whatever coding agent lives on that VM) to implement the feature".

And then a minute later I could ask it "Is copilot done yet?" and it replies "No, looks like it is still working on it". And then a minute later I ask again. It replies "Yes, it finished. It changed chart.py and styles.css. Do you want me to tell you what specific changes it made to the files?".

But it looks like none of the chat agents with voice interface have such a connector at the moment? An SSH connector would be the most useful. But a "GitHub Codespace connector" or something like that would also do.

I wonder if that will be a missing piece for long. If so, I would build an agent with voice mode and ssh connector myself. But I guess it should come out from the big guys any moment now?

sleepybrett - 4 days ago

Microsoft has a bad reputation for hardware. Back in the late 90s you could trust them for mice/keyboards, not fancy but they worked. Some swore by that ms natural (it gave me RSI that it took a special keyboard that made people look at me like I was crazy to fix). The xbox eventually helped them build some trust. However then there was the surface series and the phone. They dropped support for certain surface tables/laptops very quickly, they got deeply mixed reviews. The phone was back to front a disaster. Recently they had that AR headset, total miss, a miss that makes the Apple Vision Pro look like a wildly successful product.

I don't trust microsoft with hardware anymore, nor do i trust them with software.

phuff - 4 days ago

> [C]onsumers, on the other hand, are mostly looking to waste time, which is why attention- harvesting advertising is the only software business model that works at scale for consumer services.

I came here to talk about this, like some other commenters did, too :) I think that this _is_ a predominant view amongst most of Silicon Valley but I think it's kind of a local maxima view... Easy to agree with, easy to see that it's a functional idea, but... people... (i.e. consumers) do lots more than just waste time on their phones even though I bet that's a huge amount of what people are doing across the US right now.

I guess the thing that _is_ true about this nugget is the "at scale" part. It's hard to find things _at scale_ that people would pay for on a phone. So the phone sort of falls back into this easy to monetize thing via advertising. But I think people (qua consumers) probably can clearly be a sustainable market for way more than attention harvesting (or dopamine fracking!) but it requires a lot more effort to think of things that you can build a market out of there. So people sort of lazy-back into attention harvesting via ads.

thraway3837 - 4 days ago

Not sure why the article is titled the way it is. Ben’s take on Siri AI being just good enough for the vast majority of consumers makes sense. The iPhone is the most consumer facing product because it’s a consumption platform. Some folks use it to create stuff, but most people use it to consume media or interact with another human.

iPadOS also did not receive any product specific updates because I think Apple understands that device well: it’s also a consumption device with a bit more productivity capability. They know they can ship a full macOS on iPad, as witnessed by the lower performance A18 chip in the Neo running the full OS, but what’s the point? Using a desktop UI with a touch interface is terrible. So you’d need a mouse and keyboard. By the time you get that accessory, you’ve already exceeded the cost of a Neo or MacBook Air. There’s also no size, weight or space difference between a fully accessorized iPad and MacBook Neo, Air or 14” Pro.

I think Apple will be fine regardless of whether this new Siri AI stuff actually works well or not. I think deep down they don’t really care because they don’t have to. All of their devices are perfect clients that can interact perfectly fine with cloud inference. And their devices are such a joy to use. That’s what Apple is good at.

Now the confusing part is the new Microsoft hardware project. Is Solara a laptop? Tablet? 2-in-1? Phone? They already have a great hardware run with Surface, so I wonder if this new project is a more powerful local inference push?

alsetmusic - 4 days ago

I've valued Ben Thompson's opinions less over time. He was super into goggle-like devices and remote meetings. I own Apple Vision Pro. It's a technical achievement, but not compelling beyond immersive video (too bad). He harps on Dems trying to clean up monopolies (Lina Khan during Biden, who had good principles but didn't get much done; probably blame her boss) and is quiet through republican bullshit (T2). He seems to interview huge tech figures as though he was the was the Verge or Nilay Patel does: with a soft touch.

Just not doing it for me. Think I'm gonna stop reading anything he says.

Edit: missing words, thinking faster than typing

kilroy123 - 4 days ago

I am still convinced that Apple is slowly working its way to smart glasses. And that *this* is the Next Big Thing. Frankly, the future is very good AR glasses that just work.

- iPhone Air to cram everything into a small space

- Vision pro - a new OS for looking at things and interacting

- Better Siri and AI that works with voice

- Smart local model / routing to big models in the cloud

- integration with wearables (air pods and watches)

analogpixel - 4 days ago

Who is paying for all of this AI usage on the Iphone? I didn't see anything about a new AI subscription (maybe I missed it?), and I doubt Apple will want to pay million/billions a year to do it indefinitely.

bcjdjsndon - 3 days ago

Op said himself there's no money selling chatbots to users... The money is in enterprise.

dmzxnico - 2 days ago

iPhone will always lead as long as iOS is the standard. To be honest, most companies do good phone frames. But they all run on Android.

Apple has been smart by keeping iOS only for them and not work with partners as Android does, it helps keeping it optimized.

If someone could do the same, it'd be a game changer in the next 10 years.

deltarholamda - 4 days ago

After the blowout success of the Macbook Neo, I'd think the bet would be on a cheap iPhone. Maybe not, as so many people finance their expensive phone through their carrier, but I suspect a $300 iPhone would eat the mid-range Android market.

JellyPlan - 4 days ago

Side note, this page really likes to jiggle horizontally as you scroll.

daft_pink - 4 days ago

It kind of reminds me of Windows mobile and blackberry and palm os where apple was clearly behind but they eventually caught up. The first iPhone didn’t even have apps!

I think agents are scary and complicated and dangerous enough that it is genuinely scary to give an agent an instruction like go buy this ticket. It’s okay and apple can easily simplify and eventually win. The mainstream hasn’t really started using agents yet and no one has come close to delivering a platform that will get them there.

MyelinatedT - 4 days ago

This Microsoft notion of “devices that don’t stand alone but surround you” sounds an awful lot like Google’s “ambient computing” of yonder.

gohome190 - 4 days ago

> Apple is targeting consumers, for whom traditional chatbot functionality is probably sufficient for the vast majority of their AI needs.

I disagree strongly here. The chatbot is the furthest thing from sufficient for the average consumer. Take the newly announced feature that groups your compromised passwords together and offers to agentically change them all for you. Really cool! Could you do that via a chatbot interface? Sure. Would the average consumer? No.

thenthenthen - 4 days ago

On step into the markets in Shenzhen and you will know it is not over. That new foldy iphone is a bit dodgy tho..

catlikesshrimp - 4 days ago

I stopped reading when he mentioned "..beyond the fact that billions.." I looked it up and iphone users are much less than two billions. I can't expect much axcuracy from this opinion.

eschatology - 4 days ago

title is too biased and sensational

first paragraph begins the article upon 2 very big and flawed statements:

> Apple fans would, for years and years, sneer at Microsoft’s penchant for talking about products that may or may not ship, deriding them as vaporware.

maybe some would, but as a whole I would say this is not a common thing

> After Apple’s bungled 2024 launch of Apple Intelligence and new Siri, however, vaporware is fair game

no it's not

I didn't know about Project Solara so learned a new thing from the article, but I got the impression that it's not as big as the author tried to make it seem, felt very distant and forced.

qmr - 4 days ago

> The concept — which isn’t entirely clear from that video, but was more fully explained on stage — is that in the future you will be surrounded by an ecosystem of devices, none of which stand alone, but are more like portals to interact with your agents, which live in the cloud.

The fuck I will.

There is no cloud, only other people's hard drives.

-- your increasingly crusty and curmudgeonly old Unix admin who is not paranoid because they are out to get you

- 4 days ago
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ahartmetz - 3 days ago

> in the future you will be surrounded by an ecosystem of devices, none of which stand alone, but are more like portals to interact with your agents, which live in the cloud

Ewww, that's fucking gross. Please don't say such things when I'm about to eat.

paradox242 - 3 days ago

I just know I'm going to end up having to pay more for a phone that doesn't have all this AI bullshit on it.

ramon156 - 4 days ago

Wait what, is this a Microsoft ad in disguise?

- 4 days ago
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wiseowise - 4 days ago

iPhone's last stand? More like Microsoft's last stand. Nobody wants their garbage hardware and software outside of enterprise shmucks more interested in filling their pockets with fat contract money than delivering value.

> The reason is obvious when you think about it: enterprises are paying for their employees’ time, so of course they are willing to pay for tools that make those employees more productive

Is that why there are billions dollars wasted in useless Microsoft subscriptions and services?

> consumers, on the other hand, are mostly looking to waste time, which is why attention-harvesting advertising is the only software business model that works at scale for consumer services.

What a callous view of people. Who's your benchmark? TikTok addicted kids?

> What they do want to do is watch short-form video

Yeah, it seems so.