In today’s era of rapid digital technology development, energy efficiency in electronic products is garnering increasing attention. The new iPad Pro stands out in many aspects, with its unique advantage stemming not only from using Apple’s most powerful processor to date.
Once, people’s ideal fantasy of an iPad was a magical piece of glass. With the advent of the iPad Pro, this fantasy has come to the brink of reality. The latest iPad Pro offers two size options: 11 inches and 12.9 inches.
Its notable feature can be summed up in one word— “thin”! Whether it’s the 5.3mm thickness of the 11-inch model or the 5.1mm thickness of the 12.9-inch model, both are significantly slimmer than the profile of an iPod nano. Moreover, the new iPad Pro is also lighter, with the 11-inch model weighing less than 1 pound, and the 12.9-inch model being nearly 1/4 pound lighter than its previous generation.
The new iPad Pro can achieve such thinness in design, thanks to the innovation in display technology. Apple introduced OLED screens for the iPad Pro, and to overcome the brightness limitations of OLED screens, especially on large displays, Apple developed a dual-layer tandem OLED technology that uses two OLED panels to emit light together, creating an exceptional screen brightness. This screen is dubbed by Apple as the “Ultra Retina XDR display” (Ultra Retina XDR), and both sizes of the iPad Pro come equipped with this technology.
In terms of pricing, the 11-inch iPad Pro starts at 8,999 yuan RMB (256GB version), and the starting price for the 12.9-inch model is 11,499 yuan RMB, with an additional 800 yuan RMB needed for the nano-texture glass option. It’s worth noting that the nano-texture glass is only available for the 1TB and 2TB models, priced at 14,899 yuan and 18,299 yuan respectively. Opting for the top configuration (12.9 inches, 2TB, nano-texture glass with cellular), the price reaches as high as 22,499 yuan, comparable to a Macbook Pro equipped with an M3 Max, demonstrating that iPad prices are increasingly aligning with computers.
Regarding other product updates announced at the event, such as the all-new iPad Air with an M2 processor, and the updated Apple Pencil, it is believed that everyone has already received related information through various channels, so there is no need to elaborate here.
In the field of artificial intelligence (AI), Apple does not seem to draw as much attention as other tech giants. Apple first mentioned “AI” in the recently launched MacBook Air. With AI large models being released consecutively by Google, Meta, OpenAI, and others, Apple’s generative AI model seems relatively understated. However, Apple is not willing to give up; in the AI field, they introduced their self-developed OpenELM model, which includes four different versions with 270 million, 450 million, 1.1 billion, and 3 billion parameters, comparable in performance to Microsoft’s recently open-sourced Phi-3 model.
OpenELM is designed specifically for endpoint hardware, setting it apart from open-source large models like ChatGPT, aligning with Apple’s consistent emphasis on privacy and security. Terminal hardware requires hardware support that is adapted to the needs of artificial intelligence experience. In this regard, the unexpected adoption of the M4 chip in the iPad Pro, instead of the anticipated M3, echoed the Global Developers Conference held on June 10th. According to Canalys analyst Emma, if M3 had continued to be used, the device’s AI capabilities might have been limited, unable to support the new features unveiled at WWDC. The AI processing power of the M3 is 18TOPS, which is significantly less than Intel’s Ultra processor and Qualcomm’s Snapdragon X Elite. The M4 chip’s AI processing power reaches 38TOPS, which is comparable to the aforementioned models and slightly higher than the A17 neural engine built into the iPhone 15 Pro.
This marks an important step for Apple on its path to transitioning into AI, and it signals that there will be more collaborative efforts and actions, both internally and externally. Reports indicate that Apple is in dialogue with OpenAI to explore support for new iPhone features and integration into the next-generation iPhone operating system, iOS 18. IT Times notes that iOS 18 will debut at this year’s WWDC, a move that signifies Apple’s deepening promotion of AI technology in the iPhone product line.
Apple’s ambitions may transcend terminal devices. Rumors suggest that Apple has been committed to developing its own chips, which must run AI software on data center servers. The internal server chip project, codenamed ACDC, has been underway for several years, but whether it will eventually be activated and when it will be launched is still unknown. However, social media rumors claim that “the ACDC project may be canceled” for reasons involving costs, lack of differentiation, and a core strategy focused on endpoint devices.
Beyond technological development, Apple also faces business challenges. This is particularly true for its most profitable product—the iPhone. According to a Tech Insights report, in the first quarter of 2024, Apple’s smartphone market share in China was 13.7%, dropping out of the top five. A synthesis of data from multiple agencies indicates that there was a decline in Apple’s smartphone shipments in the first quarter of this year. IDC data shows that Apple was tied for third place in the domestic market in the first quarter, with shipments decreasing by 6.6% year-over-year.
Despite challenges in its core markets, Canalys data shows that Apple’s global shipments experienced a double-digit decline in the first quarter of 2023, falling to 48.7 million units and ranking second. Apple’s latest financial report disclosed in May indicated that in the first three months of this year, the company’s revenue reached $90.753 billion, a decrease of 4% compared to the same period last year; notably, in Greater China, their revenue was $16.372 billion, a 8% decline year-over-year.
Observing Apple’s product line, one can see that starting with the iPad equipped with the M4 chip, Apple seems to intentionally use artificial intelligence as a “heart stimulant” to boost the market. Meanwhile, the divestment operations of Apple by investment giant Warren Buffett have also attracted widespread attention in the market. After Berkshire Hathaway slightly sold 10 million shares of Apple in the last quarter of last year, it significantly increased its divestment efforts in the first quarter of this year. Berkshire’s latest quarterly report showed that the fair value of its Apple shares dropped from $174.3 billion at the end of last year to $135.4 billion, a reduction of about 22%, exceeding the nearly 11% cumulative decline in Apple’s share price over the same period.
As of the end of the first quarter of 2024, Berkshire’s Apple holdings ratio dropped from 49.3% to 40.3%. Nevertheless, it remains the largest shareholder of Apple. At the Berkshire shareholders meeting, a shareholder asked why they reduced their Apple stock holdings, and Buffett explained that the main reason was for reasonable tax avoidance, given that the current capital gains tax rate is 21%, and it might increase to 35% or even higher in the future. He also emphasized that Apple is a very outstanding company and that he plans to hold Apple stock over the long term.
As for the real reason behind Buffett’s divestment of Apple, whether it’s solely for tax avoidance or includes other considerations, there is much speculation in the market. Investing is full of risks, and past performance does not predict future results.
