2 2025 REPLACED BY KEVAN PAREKH, APPLE'S CURRENT VICE PRESIDENT OF FINANCIAL PLANNING AND ANALYSIS. WEDBUSH ANALYST DAN IVES JOINS US NOW, TALK APPLE, NVIDIA IF WE HAVE TIME. FIRST GIVE YOUR TAKE ACTUALLY ON THE CFO CHANGE, ANY CONCERN AT ALL? >> NOT REALLY. LOOK, LUCA HAS BEEN A HUGE PART OF THE APPLE STORY THE LAST DECADE. THE WAY THEY DO IT IN CUPERTINO IT'S GROOMING FOR THE KICK KICK SESSER. I EXPECT A SEAMLESS TRANSITION HERE. IF YOU MAKE A MOVE LIKE THIS DO IT AT THE BEGINNING OF THE YEAR, AND IT CONTINUES TO BE THE WAY APPLE DOES IT, STRONG BEND NO WORRIES. >> OUR VIEWERS NO STRANGER TO YOUR VIEW WE ARE GOING TO GET AN AI-DRIVEN SUPER CYCLE. YOU THINK IT WILL BEGIN WITH THE INTRODUCTION OF THIS PHONE ON SEPTEMBER 9th? >> YEAH. ALL OF OUR CHECKS -- PEOPLE WILL BE LIKE DO YOU JUST BELIEVE IT? EVERYTHING WE'RE SEEING IN ASIA FROM A COMPONENT PERSPECTIVE, THIS START IS 80 TO 84 MILLION UNITS. NOW, 90, 92 MILLION. YOU START THE TRAJECTORY THIS OUT, THIS WILL BE A HISTORICAL iPHONE UPGRADE CYCLE >> YOU DO. >> THAT'S BECAUSE OF YOUR -- LAST TIME WE TALKED TO YOU YOU WERE IN TOKYO. >> YEP. >> YOU TOLD ME YOU'RE GOING BACK VERY SOON TO ASIA. IS THAT WHAT THIS IS BASED ON? >> IT'S TWO THINGS. THE CHECKS, EVERYTHING WE'RE SEEING THROUGHOUT ASIA, AND IT COMES DOWN TO OUR ANALYSIS OF THE PENT UP UPGRADE CYCLE. WE ESTIMATE ABOUT 300 MILLION iPHONES HAVE NOT UPGRADED IN FOUR PLUS YEARS. YOU COMBINE THIS, THAT'S HOW YOU GET WHAT I CALL AN AI-DRIVEN SUPER CYCLE, THAT STARTS WITH iPHONE 16. I THINK THIS STARTS A HISTORICAL PERIOD. WE'VE TALKED ABOUT THE INNOVATION IS IN THE REARVIEW MIRROR. 25% OF THE WORLD BASED ON OUR ESTIMATES WILL ULTIMATELY ACCESS AI THROUGH AN iPHONE. >> HAVE YOU SAID OVER THE LAST COUPLE UPGRADE CYCLES IT WILL BE GAME CHANGING TO THIS EXTENT AND BEEN A LITTLE BIT WRONG, OR HAVE -- I'M TRYING TO GAUGE ON THAT, WHY THIS ONE WILL BE DIFFERENT? >> I THINK THE REASON THIS IS DIFFERENT -- AND THERE HAVE BEEN NUANCES IN THE UPGRADE CYCLES -- PART OF HOW WE'RE TALKING ABOUT APPLE ON THE CUSP OF A $4 TRILLION MARKET CAP, THE UPGRADES HAVE BEEN SUCCESSFUL AND GAINED SHARE. THE DIFFERENCE WITH THIS IS THAT YOU, FROM AN AI PERSPECTIVE, THERE'S GOING TO BE HUNDREDS OF APPS THAT USERS WILL ONLY BE ABLE TO ACCESS WITH APPLE INTELLIGENCE, ESSENTIALLY ON iPHONE 16 OR 15. YOU GO BACK, IF YOU'RE PRE-iPHONE 15 YOU WILL NOT ACCESS APPLE INTELLIGENCE AND WE CONTINUE TO BELIEVE THE CONSUMER AI REVOLUTION GOES THROUGH CUPERTINO, JUST LIKE THE ENTERPRISE REVOLUTION IS GOING THROUGH GODFATHER OF AI JENSEN AND NVIDIA. >> WHAT ARE THE APPS YOU THINK ARE KIND OF A NEED FOR PEOPLE, THAT THEY'LL SAY OH, WELL, I KNOW SOMEONE WHO HAS UPGRADED AND THEY'RE ABLE TO DO XYZ, NOW I FEEL THE NEED TO DO X, Y, Z? WHAT IS THE STICKINESS OF THAT PRODUCT? >> IT'S ALL ABOUT DEVELOPERS. DEVELOPERS, THAT'S THE LIFEBLOOD OF APPLE. RIGHT NOW WITH APPLE INTELLIGENCE AND IOS 18 THEY WILL BUILD HUNDREDS OF APPS AI DRIVEN, GENERATIVE AI, NOT JUST ABOUT OPENAI HOW A TYPICAL USER WILL ACCESS ON THEIR iPHONE, HEALTH, FITNESS, A LOT OF FUNCTIONS THAT WE SEE CONSUMERS WHEN WE TALK ABOUT AI, THIS IS THE DEVICE, THE START OF THE CONSUMER REVOLUTION, AND MANY WILL SAY WHAT ABOUT SAM SUNG AND OTHERS? >> YEAH. >> LISTEN, I'M GOING TO START A CONVERSATION WE WILL HAVE TO CONTINUE ON YOUR NEXT TIME HERE. WHAT ABOUT THE IDEA AI MOVES TO THE ACTUAL DEVICE, RIGHT, I DON'T NEED APPS AT ALL. I WILL TALK TO IT AND IT WILL DO WHATEVER I NEED IT TO DO AND, THEREFORE, APPLE BECOMES SORT OF SUPERFLUOUS. >> THAT'S A GREAT POINT. APPLE IS WITH UNSTEP AHEAD. THEY RECOGNIZE THAT ULTIMATELY THE HEART AND LUNG OF THEIR ECHO SYSTEM ARE THE APPS. THEY WILL PROVIDE THE BUILDING BLOCKS. COOK TALKED AT WWDC. DEVELOPERS