Prediction: Apple's Dominant Competitive Position Won't Fade in the Artificial Intelligence (AI) Age

Core Viewpoint - Apple maintains a strong position in the consumer tech industry despite criticisms regarding its AI advancements, with a significant distribution advantage through its vast number of active devices [1][2][3]. Group 1: Company Strategy and Financials - Apple is taking a cautious approach to AI investments, with capital expenditures of $12.7 billion in fiscal 2025 [1]. - The company has not introduced major AI features, leading to criticism, particularly regarding the delay of its AI-powered Siri [2]. Group 2: Distribution Advantage - As of a year ago, Apple had 2.35 billion active devices globally, with the installed base continuing to grow [3]. - The iPhone accounts for approximately half of Apple's product revenue, suggesting there are over 1 billion active iPhones [3][4]. - This extensive distribution network provides Apple with a significant competitive edge, as the iPhone remains a crucial device for consumers worldwide [4][8]. Group 3: Market Position and Future Outlook - Despite the rapid growth of AI technologies, the smartphone, particularly the iPhone, is expected to remain the most important device for consumers [8]. - Apple's competitive moat is strengthened by its brand recognition and ecosystem, which is likely to endure even as AI influences the economy and society [9].