Google’s Former Head of AI Looks to Propel Apple’s Machine Learning

“Artificial Intelligence is a tool not a threat”

-Rodney Brooks

                                                                                                                 (Source: Flickr)

A couple months ago, John Giannandrea, the former head of Google’s search and artificial intelligence division, joined Apple. Reporting directly to Tim Cook, Apple stated that they wanted John to run Apple’s “machine learning and A.I. strategy”. The company is confident in his ability to utilize AI while keeping customers privacy intact.

Apple recently updated their leadership page to include John’s position with Apple, which is Chief of Machine Learning and AI strategy. The company is now combining the machine learning and AI team under John’s leadership. Thus, Core ML and Siri teams are working under one umbrella for the first time.

(Source: Apple)

This is a big win for Apple because they are currently lacking in the AI industry, mainly due to their protection of privacy causing limitations on data collection. Compared to competitors, such as Facebook and Google, Apple is leagues behind in development. John could provide great potential for the growth of Siri and other machine learning technology.

This also has the potential to make advancements for HomePod which uses Siri, a speaker similar to Amazon’s Alexa. The HomePod only has 6% of marketshare, so an expanse into a more knowledgeable Siri could bring it into more homes. Also, with the new Apple maps roll out happening soon, the company hopes for AI to make it more powerful and accurate than ever.

AAPL has been down this week, along with the DOW.

AAPL and DOW (Source: Yahoo Finance)

Apple Stock Forecast: Why Project Marzipan Is Important To Apple’s Future

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First.

Apple Stock Forecast:

Summary:

  • Apple is gradually losing the K-12 education PC market due to Google’s Chromebooks.
  • Chromebooks are now even more attractive because they can run Android apps/games.
  • It is no surprise that Apple is also intent on letting x86 Intel Macs run iOS games and apps.
  • Project Marzipan is Apple’s in-development solution to allow iPad/iPhone apps run on macOS X computers.
  • Thanks to the Virtualization Technology of Intel’s x86 processors, Apple will likely deliver the promise of Project Marzipan.

Apple (AAPL) wants to make its Mac computers more attractive and useful. Its upcoming Project Marzipan solution will allow macOS computers to run iOS apps. Apple is merely trying to replicate Google’s (GOOG) successful implementation of running Android apps on Chrome OS computers. Apple is losing the K-12 education market to Chromebooks. I am confident that more college/high school IT administrators will consider buying macOS computers again if they can run iOS apps.

Mac OS X computers now only account for 3.5% of the K-12 mobile computing shipments. However, I suspect that Macs are still the preferred computers of college students. The lack of built-in keyboards of iPads makes them a hassle to use for long-form writing/typing. Giving Macs the ability to run any iOS application makes them more useful to students and business professionals.

Sad but true, the neglected state of the Mac App Store means there’s limited availability of education/business applications. By bringing iOS apps and games to macOS computers, Apple’s PC products can compete better against Chromebooks and Chrome OS desktop computers. There are now 2.1 million iOS apps/games available from iTunes. Some of them are likely useful for students, home users, and business users.

Apple sold 19.25 million Macs last year. By making future Macs compatible with iOS software, Apple could attract more buyers. My 3-year forecast is that Apple could hit the 25 million units sold milestone. The bigger screen sizes of the MacBook and iMac makes them suitable for hardcore mobile gamers. Continuous gaming on the iPhone/iPad also causes overheating which reduces their device lifetime.

Project Marzipan Is Coming Soon

Project Marzipan is supposedly going be implemented this year. This is realistic. Intel (INTC) processors have Virtualization Technology. All Macs now use Intel x86 processors. Current Mac computers are capable of running emulated iOS apps. The process is similar to how easy it was for third-party developers to create so many Android OS emulators for Windows and macOS computers.

It is actually possible to run iOS apps now on Mac even without Project Marzipan. Problem is you have to download and install Apple’s software development IDE, Xcode. All iOS developers use the powerful iOS simulator tool of Xcode to test their games/apps. However, downloading Xcode requires you to sign-up as a software developer.

My guess is that Apple will update macOS High Sierra to include an integrated iOS emulator that anyone can use. Since Apple itself is creating the emulator, I expect macOS computers to run iOS apps at near-native speed. Apple has expanded support for its own Metal API for the Mac. Playing advanced 3D iOS games on the Mac should not be a problem.

Why Apple Cannot Afford To Lose The Education PC Market

Winning back the education market is very important to Apple’s future. The students of today are going to be the workers, managers, and leaders of tomorrow. If Apple lets Google continue its dominance in the K-12 and college PC markets, students will be trained in Google’s productivity/collaboration software and Chrome OS ecosystem.

Going forward, Google-trained students means they will be the employees who will require Chrome OS and Android devices. The said future scenario is bad for Apple and its shareholders. Yes, Apple currently has tens of millions of loyal fans. However, Apple needs to retain a strong presence in the education market to keep its brand alive among young people.

The future of Apple will depend on how appealing/useful its products will be to the future citizens of the world.

Conclusion

The app ecosystem dictates the long-term success of computing platforms. The Mac App Store cannot match the software diversity and size of the iOS app store. Apple, therefore, is correct to implement emulation of iOS apps on the Mac. Project Marzipan can revive the flailing Mac App Store platforms with the massive ecosystem of 2.1 million iOS apps/games to the Mac platform.

A larger app ecosystem for the Mac makes it more useful. Consequently, its future sales could improve after Project Marzipan is finally implemented this year. Better sales performance from its Mac computers can help Apple offset further weaknesses in iPhone/iPad sales.

The Mac business accounts for 7.81% of Apple’s quarterly revenue. This figure could rise after Macs become iOS apps-friendly.

(Source: I Know First)

Past I Know First Forecast Success with AAPL

I Know First’s algorithm has made accurate predictions on AAPL in the past, such as my bullish article published on July 5th, 2017.  In the article, it outlines Apple’s many won accolades. For some people, Apple has the best smartwatch, headphones, smartphone, tablet, computer, and app store. Tim Cook’s reign also saw Apple’s ascendance as the most valuable company in the world. Apple sells luxury-priced consumer electronic products and is making tons of money doing it. At the time, Apple dethroned Wal-mart (WMT) to become the second-biggest online retailer in America, according to eMarketer’s trailing 12 month period ending last March 2017. Apple did e-commerce sales of $16.8 billion in the U.S., beating Wal-mart’s $14.3 billion. Additionally, the article mentions Tim Cook should be commended for making Apple an exemplary model for e-commerce. Unlike Amazon which specializes in thin-margin products, Apple sells pricey products online.

Since then, AAPL shares have risen 18% in line with the I Know First algorithm’s forecast. See chart below.

[Source: MorningStar, April 10th, 2018]

I Know First has positive 3-month and 1-year algorithmic forecasts for AAPL. I am therefore endorsing Apple’s stock as a buy. Based on the high predictability scores (0.7 and 0.82), I Know First has a long history of accurate predictions for AAPL’s 3-month and 1-year market movement.

Furthermore, my buy rating for AAPL is in line with its bullish monthly technical indicators and moving averages.

I Know First Algorithm Heatmap Explanation

The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality measure of the signal. This is a unique indicator of the I Know First algorithm. This allows users to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above 0 in order to fill confident about/trust the signal.

Amazon Stock Predictions


Netflix stock predictions

Apple Stock Outlook: Google’s Money Is Helping Finance Apple’s Research On Self-Driving Cars and Augmented Reality

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First

Apple Stock Outlook

Summary:

  • Bernstein analyst A.M. Sacconaghi Jr. estimated that Google paid Apple $3 billion to remain the default search engine on the iPhone/iPad.
  • This is triple the annual $1 billion payment that Google used to pay Apple three years ago to keep its default search engine status on the iPhone/iPad.
  • Google’s willingness to pay triple validated just how important Apple’s mobile ecosystem is to advertising-dependent companies. Apple’s iOS ecosystem is indispensable to Google.
  • The estimated $3 billion payment from Google helps pay for the estimated $3 billion that Apple is spending annually on self-driving cars and Augmented Reality research.
  • In spite posting a new high last week, AAPL still has a bullish one-year algorithmic forecast. This stock could still post a new 52-week within the next 12 months.

An analyst from Bernstein reported earlier this month that Apple (AAPL) could have gotten $3 billion  from Google (GOOG) in FY 2017. This reported $3 billion payment is in exchange for Google retaining its right to be the default search engine on Apple’s smartphones and tablets. The $3 billion estimated annual payment from Google helps finance the estimated $3 billion that Apple is spending on Artificial Intelligence and Augmented Reality research.

It was revealed  in 2014 that Google paid $1 billion per year to Apple but the previous deal expired in early 2015.

Google obviously offered more money to Apple to beat Microsoft’s (MSFT) Bing. Google will continue to monetize mobile search engine queries of iPhone/iPad users for many years to come. Yes, Apple doesn’t have a search engine or a robust mobile advertising services platform, but it still is a beneficiary of the $22.18 billion/year U.S. mobile search advertising industry.

apple stock predictions

Source: https://www.invespcro.com

Apple’s has obvious long-term economic benefits because Google’s search engine accounts for 95% of the U.S. paid search advertising on smartphones.

Why Investors Should Really Care

In the U.S., 75% of Google’s search engine advertising revenue is generated from iOS devices. It is only fair that Apple is now reportedly getting $3 billion per year from Google. Getting a larger share of the mobile search advertising revenue from Google is a small but important tailwind for AAPL. Google’s long-term advertising success has trickle down benefits to Apple.

apple stock predictions

Source: https://www.invespcro.com

The deal between Google and Apple might also be pro-rated based on Google’s total annual mobile search advertising revenue on the iOS platform. In short, Apple’s annual payment from Google could also grow larger than $3 billion in the coming years. Google gained $11.45 billion in U.S. mobile search advertising last year. Its estimated revenue will grow to $13.74 billion this year. I believe Apple will accordingly get a higher annual payment from Google for the next succeeding years.

Google’s willingness to pay $3 billion+++ per year to keep its default search engine status fortified the importance of the iOS ecosystem to the mobile advertising industry. Apple’s hundreds of millions of iPhone/iPad users belong, more often than not, to the middle-class and upper-class sectors of consumers. Google therefore has very compelling reasons to keep paying Apple big money to retain its default search engine status on mobile Safari.

$3 Billion Is A Lot Of R&D Money

Apple has decided to postpone indefinitely its ambition to build its consumer-grade self-driving cars. However, the company is still intent on researching and developing software and the cloud platform for autonomous driving cars. The $3 billion search engine-related payment from Google is a lot of money to finance development of this venture.

Going forward, Apple needs to spend big money on R&D to accelerate its software-based and Artificial Intelligence-enhanced self-driving car technologies to keep up with Google, Nvidia (NVDA), and Baidu (BIDU). The more money and manpower it can pour on this segment, the faster it could catch up with the leaders. Intel (INTC) paid more than $16 billioin for Mobileye just to boost its footprint in self-driving cars.

The autonomous vehicle business is definitely a new fashionable tech growth industry that Apple must get involved in quickly. The $3 billion/year from Google could also help Apple fund more third-party acquisitions to improve its car-related Artificial Intelligence efforts.

Apple will also probably have to research car-specific processors and sensors to complement its software for self-driving vehicles. Nvidia, Mobileye, and Qualcomm (QCOM) are years ahead when it comes to car-centric processors. I do not think Apple can build its proprietary software/cloud platform for self-driving cars without its own proprietary processors/sensors.

Conclusion

Getting $3 billion/year from Google is not going to move Apple’s stock. However, it could accelerate Apple’s research on Augmented Reality and self-driving car technologies. These two developing are future diversification areas for Apple. Apple cannot forever rely on its iPhone revenue to propel its future growth. It needs to get involved on the new tech fad, self-driving cars and AR. Riding on what’s popular helps motivate investors to remain bullish on AAPL.

AAPL already posted a new record high of $162.51 last week.  However, next month could deliver the iPhone 8 that everybody dreamed about. Apple coming up with a real major upgrade to the iPhone 7 next month could propel the stock to a new 52-week high. It could even hit $170 if Tim Cook announces there would be enough global supply for the iPhone 8 before September ends.

AAPL remains a buy. It has outperformed Google’s YTD return. AAPL’s YTD gain could hit +42% after 2017 ends. I will remain long AAPL as long as Warren Buffett remains long AAPL.

apple stock predictions

(Source: Morningstar)

My bullish outlook for Apple is complemented by the very positive one-year algorithmic forecast from I Know First. Staying long or buying more AAPL shares (and keeping them for one year or more)  could turn out to be rewarding for patient investors.

apple stock predictions

Past I Know First Forecast Success with AAPL

I Know First’s algorithm has made accurate predictions on AAPL in the past, such as its bullish forecast published on January 17, 2017. In the article, it explains that despite the critics and the tough competition Apple had to deal with, the company succeeds to impose its brand as a key player in its field. The bullish signal identified by the algorithm is strengthened by different facts. Since the forecast’s release, the stock has increased by 34.22%.Apple Stock Predictions

I Know First Algorithm Heatmap Explanation

The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality measure of the signal. This is a unique indicator of the I Know First algorithm. This allows users to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above 0 in order to fill confident about/trust the signal.

apple stock predictions


Nvidia stock forecast


 

Apple Stock News: Google to Pay $3 Billion to Apple to Remain Default Search Engine

Apple Stock News

For the latest Apple Stock News, AAPL closed at $159.85 per share on August 14th, 2017. It generated a return of 1.50% from its previous close on August 11th, 2017, when it closed at $157.48 per share.

apple stock news

Alphabet Inc.’s Google pays Apple Inc. about $3 billion per year, up from just $1 billion three years ago, to remain the default search engine on iOS devices, analysts at Bernstein wrote in research note Monday.

Bernstein’s researcher Toni Sacconaghi pointed to court documents that confirmed that Google paid Apple $1 billion in 2014 as part of an agreement to offer Apple a cut of what Google makes on iPhone and iPad users. “Given that Google payments are nearly all profit for Apple, Google alone may account for 5% of Apple’s total operating profits this year, and may account for 25% of total company OP growth over the last two years,” wrote the Bernstein analyst.

Although $3 billion is a hefty sum, Apple’s market share in the mobile and tablet industries makes the payment worth every cent. Both parties are winning with this deal.

Apple’s service business, is expected  to grow on its own to reach the size of a Fortune 500 company and make up as much as 13% of total revenue in 2017. After digging into the filings and extrapolating for the tech firms’ growth since 2014, Bernstein suggests that Google’s licensing revenue is the largest or second-largest contributor to Apple’s service business growth.

On Sunday, I Know First published an article pointing out the strengths of Apple’s service business. Read it here. 

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

 

Apple Stock News: New Speaker To Rival Amazon And Google

Apple Stock News

For the latest Apple Stock News, AAPL closed at $152.76 on Wednesday, May 31st, 2017. It had a loss of -0.59%  from its previous close of $153.67 per share.

The latest rumoured device from Apple (AAPL), set to reach your home, will be a Siri-controlled smart speaker. It is rumoured that Inventec Corporation, manufacturer of the AirPod wireless headphones, will also add the speaker to its production line.

The Siri-controlled smart speaker will compete with Amazon’s (AMZN) ‘Echo’ and Alphabets’s (GOOGL) ‘Google Home’. The device is not expected to be ready to ship until next year. Although, the debut could come as soon as the annual developer conference later this month.

The speaker will provide a hub for Apple’s HomeKit home automation system. It will allow users to control other devices, lights, door locks and window blinds. Competition in Google Home and Echo have upgraded their speakers to support voice calls. In the meantime, Echo has been fitted with a touchscreen. The Apple device will differ from competition, through its offering of surround sound technology and deep integration with other Apple products.

With Apple’s lofty expectations of reaching $50 billion in services revenue by 2020, a product such as this speaker may help to compliment its Apple Music service. Moreover, this could contribute to Apple’s rising stock performance.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

Apple Stock News: Apple and Amazon Bury the Hatchet

Apple Stock News

For the latest Apple Stock News, AAPL closed at $156.10 on Wednesday, May 12th, 2017. It had a gain of 1.40% from its previous close of $153.95 per share.

 

Before Tim Cook became Chief Executive Officer at Apple, the company’s website offered 14 products. Fast forward seven years, the product offerings have blossomed to 27, available in over 200 different versions. Post Jobs’ era, this strategy has helped Apple maintain growth, despite stagnation in its most important market, smartphones.

In 2010, iPhone sales made up 39% of revenue with that figure growing to almost two-thirds of total revenue in 2017. Due to the nature of the industry, most consumers are already using smartphones. In order to counter this dilemma, Apple’s other products and services have had to pick up the slack. With the 10 year anniversary of the iPhone fast approaching, there’s much hype about the iPhone 8. With new technologies expected, such as an OLED screen and the removal of the home button, a hefty price tag is expected to land on the iPhone 8.

There’s good news for consumers, with Apple (AAPL) set to re-introduce Amazon Prime Video (AMZN) to Apple TV. Buzzfeed reports that the two tech-giants have settled their differences. In the near future, the Prime Video app will be available on Apple TV.

Furthermore, it is expected Amazon will again start to sell Apple TV devices. Amazon banned third-party sellers from selling Apple TVs and Google Chromecasts (GOOGL) through their platform. At the time, it was argued the devices inspired “customer confusion.”

 

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

Apple Stock News: New Name? New Display?

Apple Stock News

For the latest Apple Stock News, AAPL closed at $139.14 on Friday, March 10, 2017. It had a gain of 0.33% from its previous close of $138.68 per share.

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On March 7, 2017, I Know First wrote an article discussing the new iPhone’s OLED display. This past week, more news has come out about an all-glass design or a curved screen.

In what has been a quiet week for Apple, there have been countless rumours about its newest iPhone and what it may be called. CEO Tim Cook was seen having dinner this past week with Google CEO Sundar Pichai, ramping up speculation.

It’s a big anniversary for Apple when they release the iPhone. The iPhone will be commemorating Apples 10th Anniversary of iPhones. The latest rumour about this new iPhone is that it could be called the iPhone 8, or the iPhone X, or the iPhone Edition. More rumours are circulating about what types of features the phone will have.

Will it be an all-glass design with an OLED display? Or a curved screen? Wireless charging? All of these questions will be answered when Apple makes a statement or when the phone is released.

A new report this week suggests that it could potentially have a new white ceramic design.

Whatever the design, Apple fans and consumers will enjoy and adapt to the new changes, especially as its a special edition phone.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

Apple Stock News: AAPL in 2017

Apple Stock News

For the latest Apple Stock News, AAPL closed at $116.73 on Wednesday, December 28, 2016 with a 0.78% loss, or $0.91 from its previous close of $115.82 per share.

screen-shot-2017-01-01-at-10-45-12-am

On December 30, Apple released information that one of their manufacturers will be opening an Apple factory in Bengaluru, India. The production from this factory will begin in April of 2017. The tech giant plans on cutting production by 10% on iPhones this year but even with the cutback, analysts are bullish on AAPL. Twenty-six analysts have placed a buy rating for AAPL out of thirty-two. Since May, the share price on APPL has gone up 29% from its low, but as of this weekend, APPL began to fall back down from $117.26 on December 27, 2016.

There are a few things that Apple can do in the new year in order to continue their growth. Amazon has come out with their Amazon Echo, a portable device akin to Siri. However, Amazon Echo has features that trump Siri. Amazon Echo can:

  • Plays all your music from Amazon Music, Spotify, Pandora, iHeartRadio, TuneIn, and more using just your voice
  • Fills the room with immersive, 360º omni-directional audio
  • Allows hands-free convenience with voice-control
  • Hears you from across the room with far-field voice recognition, even while music is playing
  • Answers questions, reads audiobooks and the news, reports traffic and weather, gives info on local businesses, provides sports scores and schedules, and more using the Alexa Voice Service
  • Controls lights, switches, and thermostats with compatible WeMo, Philips Hue, Samsung SmartThings, Wink, Insteon, Nest, and ecobee smart home devices
  • Always getting smarter and adding new features, plus thousands of skills like Uber, Domino’s, and more

Retrieved from Amazon

To compete with Amazon, Apple must come up with a better version of Siri, in speaker form. There will be a race to partner up with Beats by Amazon, Google, and Microsoft. Apple’s best bet to beat the Echo is by winning the race for Beats.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

Apple Stock News: Apple Sending Drones Around the World

Apple Stock News

For the latest Apple Stock News, AAPL closed at $109.86 on Friday, December 2, 2016 with a 0.37% loss, or $0.41 from its previous close of $109.47. per share.

apple stock news

Holiday sales from Black Friday and Cyber Monday have officially come to a close and Apple iPhone activations have gone up 13% since Black Friday and Cyber Monday. Lucky enough, the holiday season isn’t over and there is still time for parents to buy their children new iPhone 7’s and 7 Plus’ for the holidays. Apple will also release their Apple AirPods, the anticipated bluetooth headphones in the next few weeks.

Apple’s new big project for next year isn’t on the next iPhone. It’s not the Apple Watch or MacBook Pro either. Apple is setting its sights on expanding and perfecting Apple Maps to compete with Google. The company is rumored to have gotten approval from the Federal Aviation Administration to begin sending drones around the world that would essentially take pictures and videos of roads as well as capturing any other traffic based data, similar to Google’s street view captures. To set it apart from Google, however, Apple plans on releasing a feature that could help navigate the inside of buildings as well.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

Apple Stock News: Apple vs. Google

Apple Stock News

For the latest Apple Stock News, AAPL closed at $113.00 on Tuesday, October 4th, 2016, with a 0.43% gain, or $0.48 from its previous close of $112.52 per share.

Google will be releasing a new phone called the Pixel and the Pixel XL that will rival the iPhone’s camera, battery life, and photo storage. Currently, phone companies are producing phones that have very little differences. Each phone company provides the same standard sizes, similar RAM, megapixels, storage space, etc., but the difference is in the details. The iPhone and the new Pixel have almost identical specs; however, the Pixel is providing better resolution and an extra megapixel for their users. One of the most important features of a phone, the battery life, is also being challenged, with the Pixel and the Pixel XL lasting hours longer than the iPhone.

iPhone-7-Concept

With the recent release of the iPhone 7 and the iPhone 7 Plus, Google’s marketing strategy is ingenious. Although the new phone release may put a damper on Apple stock, the iPhone 7 is still in high demand and is even higher than expected. This may offset the new competition from Google. Apple is still the leading cell phone manufacturer and has a distribution network that Google may have a hard time competing with.

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