The services business is interesting
because at some point you're going to see Apple move to a more AI infused
search engine. At some point, this Google deal that
generates about 18 to 22 billion a year from them is going to fall off a cliff
because regulators are seriously investigating it.
So that's hanging in the balance right now.
So you're going to see a little dip, probably.
But at some point, when they switch to an AI based search engine, deeper
integration with LGBT to replace Google, a new deal with Google Gemini to replace
the Google search. Gemini being Google's A.I.
service, you're probably going to see things rebound, right?
And so I am optimistic long term about the companies services business.
The one thing I would say though, is when was the last time you download an
app, right? So the app paradigm where people
download apps and Apple takes a commission from there that's sort of
dwindling. The industry has moved to more of a
services and subscription model, right, where people are paying monthly for
these things, and that makes this especially more lucrative for the
company. They're not making money off of app
downloads anymore. They're making money off people
subscribing to in-app purchases. Mark Gurman When you look in, it's Tim
Cook with Rainbow and they're inside that fancy building and assume you've
been in a bunch of times. When you look at that, what's your
longevity, your shelf life of Tim Cook? Yeah, there was a Tim Cook's In Session
story is one I've been following extremely closely.
In fact, following Tim Cook's succession and the succession of Apple's management
team is top three in my priority list and has been for the last year.
So Tim Cook is pushing 60 for the rest of the Apple executive team.
They're in their early to mid sixties. And so you're going to see this massive
changeover of Apple management over the next several years.
And you're seeing this starting later this year with the CFO, Luca maestri.
He's stepping down as CFO at the tail end of this year and he's going to move
to more of an advisory role in charge of things that are like information
systems, real estate. So a much more my new role compared to
what he was doing before. And you're going to see other Apple
executives move into these smaller roles over time as well.
Tim Cook It can go anywhere. I mean, I've heard people speculate that
he's going to leave in the next 2 to 3 years.
I have heard believe that he's going to stay until he's 70 plus and pull a Bob
Iger. Right.
But technology obviously is is a younger person's game.
They have an heir apparent there. His name is John Ternus.
He's the senior VP of hardware engineering.
Truth be told, there's really no alternative to him, to anyone else but
him being the new CEO down the road. So I think that plans in place.
But it's going to be a scary time when Apple begins that real changeover.