'iPhone Is Going To Be Just Fine:' Munster Sees No Hit To Apple's Flagship Product Amid Rumors Of Design Exec Joining Altman And Ive's AI Project

Zinger Key Points
  • Apple has been panned for not innovating enough after the Steve Jobs era.
  • Against the backdrop, rumors of ex-Apple employees teaming with Open AI's Sam Altman for AI hardware project should set off worries.

As Apple Inc. AAPL grapples with innovation challenges, a recent report suggesting a potential collaboration between former Apple employees and an AI pioneer to develop an AI hardware device is causing a stir in Cupertino. An Apple analyst, however, dismisses any immediate or medium-term impact.

What Happened: OpenAI CEO Sam Altman and former Apple design head Jony Ive are reportedly bringing in Tang Tan, the iPhone’s design executive, for an AI hardware project focused on advancing devices with cutting-edge capabilities. Rumors of Tan’s departure were first reported by Bloomberg in early December.

According to Deepwater Asset Management’s Gene Munster, the collaboration is unlikely to involve phones. 

In a Bloomberg interview, Munster noted that Ive left Apple due to boredom with phone development. Although Ive is now a free agent, Munster speculates that he might not be interested in working on a phone. Ive parted ways with Apple in 2019 and concluded his consulting role with the company at the end of 2022.

See Also: Everything You Need To Know About Apple Stock

What’s Cooking: “What is clear is that Sam Altman and OpenAI want to build an AI device,” he said. “The best guess at this point is AI device [that] is really bringing the physical and digital worlds together; It’s probably something like the Humane pin they came out with in November.”

Humane, founded by former Apple executives in 2018, introduced a $699 AI pin designed for interacting with large language models.

Describing Humane’s device, Munster explained, “It’s a pin that you wear, and it can provide information or display a hologram on your hand when you raise it. It’s a bit cumbersome in its current form.”

Sharing the Bloomberg interview clip on X (formerly Twitter), Munster remarked, “The plot thickens with Sam Altman and Jony Ive working on an AI device.”

“The iPhone is going to be just fine for the next five plus years,” he wrote.

Apple ended Tuesday’s session down 0.28% at $193.05, according to Benzinga Pro data.

Read Next: Apple Executives Spill The Beans: Here’s Why The iPhone Maker’s Chips Outshine Rivals

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