Needham's Laura Martin: Apple finally laid out AI strategy, even though it's four quarters late

Amazon - Amazon's generative AI narrative includes plans to implement small language models on devices and create a privacy cloud, which is expected to increase capital expenditures and R&D operating expenses [2] - The company is seen as having a clear vision for the future, contrasting with competitors like Apple, which is perceived as lagging behind [3][4] Apple - Apple reported slight misses in phone revenue and regional sales, but there were aggressive target increases from analysts [1] - The services segment performed better than expected, with excitement expressed by CEO Tim Cook regarding Apple's ecosystem of two billion devices [6][7] - However, Apple is criticized for being stuck in the past and lacking a broader vision compared to competitors like Amazon and Alphabet [4][11] Alphabet - Alphabet is preferred over Apple due to its faster growth rate, higher profit margins, and strategic position in multiple markets, including YouTube and generative AI [10][11] - The company is seen as having a more significant upside in monetizing R&D investments compared to Apple [11] Netflix - Netflix is planning a 10-for-1 stock split to make shares more accessible, which is viewed positively [12] - The company is facing challenges in gaming and advertising but remains strong in its core content business [14] - There are speculations about Netflix's potential acquisition strategies, particularly regarding studios, while avoiding overpaying for linear TV assets [14][15]