Rarely-Seen All-Hands Meeting: Apple (AAPL.US) Must Seize AI Opportunity and Launch "Modern Version" Products
We have learned that Apple (AAPL.US) CEO Tim Cook has rarely seen an all-hands meeting, gathering employees to inspire them with the prospects of artificial intelligence (AI) and the company's "amazing" product lineup.
A knowledgeable source revealed that Cook said: "Apple must seize this opportunity. We will invest resources to achieve breakthroughs.".
As the manufacturer of iPhones, Apple has been slow in the AI field, with its Apple Intelligence released several months after OpenAI, Google, and Microsoft. When Apple finally releases AI tools, market response is lukewarm. But Cook remains optimistic, pointing out that Apple has never been a pioneer in new technologies.
"We don't often do firsts," Cook said, "Mac had PC, iPhone had smartphones, iPad had tablets, iPod had MP3 players. We invented the modern versions of these products, and AI feels like that to me."
The hour-long meeting covered multiple topics: operating CEO Jeff Williams' retirement, Apple TV+ user growth, AirPods Pro hearing technology, as well as employee philanthropy actions, 2030 carbon neutrality targets, regulatory influences, and more.
Cook said: "Tech giants are facing global scrutiny. We need to push regulatory agencies to focus on the original intention of legislation rather than designing it to harm user experience and privacy security.".
Cook often holds town hall meetings during his global travels, but hosting an all-hands meeting at Apple Park is a rare occurrence. Before this meeting, Apple had just reported impressive quarterly sales: nearly 10% growth in June quarter sales, surpassing Wall Street expectations and alleviating concerns about iPhone demand and China market slowdown.
Apple still faces numerous challenges, including Trump government tariffs and regulatory reviews. The company estimates that tariffs will cause a loss of $11 billion this quarter but remains optimistic about sales growth. Cook reiterated during the earnings call, stating that Apple is "massively" investing in AI, adding 12,000 new employees last year, with 40% being research and development positions.
Senior Vice President of Hardware Technologies Johny Srouji leads the chip development team, which Cook views as a core component of AI strategy. Apple is developing a more powerful cloud computing chip code-named "Baltra" and building an AI server factory in Houston.
Software Engineering Senior Vice President Craig Federighi talked about Siri voice assistant's future, acknowledging that the original plan to release an AI-powered Siri this year was delayed due to architectural issues. Apple is currently developing a new architecture version, which will be released as early as next spring.
Cook encouraged employees to accelerate the integration of AI into their work and future products: "The entire company must deeply apply AI, or we will fall behind." He also outlined retail strategies, emphasizing focus on emerging markets, online stores, and investments. This year, Apple plans to open new stores in India, the United Arab Emirates, and China, with next year's expansion into Saudi Arabia.
Talking about future products, Cook couldn't hide his excitement: "Our current product lineup is amazing. Some will be released soon, while others will take some time.".
According to previous reports, Apple plans to launch its first foldable iPhone, multiple smart home devices, and develop new head-mounted displays, smart glasses, and robotics technology next year, with a special edition iPhone for the 20th anniversary also in the works.