Down Round Apple’s Passive Income Era
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Nov 12, 2025 Apple is quietly cashing in during the AI boom, despite falling behind in innovation. The hosts dissect Siri's struggles and the company's talent drain to competitors. They explore Apple's obsession with slim designs, leading to past failures, and how it profits without heavy investments in data centers. Plus, the Vision Pro's niche reception and the intriguing rumor of a phone-chip MacBook Air that targets education markets. The mix of strategic partnerships and high-quality content strategies keeps Apple on top, even when doing less.
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Apple Plays A Different AI Game
- Apple is not racing to build massive AI data centers and instead focuses on its existing device and services moat.
- That strategy still nets huge profits because Apple captures a cut of AI app revenues via the App Store.
App Store Is Apple’s AI Cash Machine
- App Store revenue from generative AI apps has exploded and Apple takes between 15% and 30% of that spend.
- That 'Apple tax' lets Apple profit from AI without building the heavy infrastructure others are funding.
Vision Pro Fell Short Of Mass Appeal
- The Vision Pro failed to reach mass adoption despite impressive design and technical polish.
- Apple struggles to make VR a daily product because use friction and lack of a killer metaverse app remain barriers.