00:00Let's get to Apple. Apple's product refresh is far from over. The company is now preparing a
00:05sweeping update to its iPad lineup. Bloomberg's learned Apple's planning its biggest iPad mini
00:10overhaul in five years, complete with an OLED display. Bloomberg's Apple and Consumer Tech.
00:16Managing Editor Mark Durbin joins us with the details. Spare a fort for iPad mini. It's been
00:21a while since I think you and I have talked about that product line. A lot of detail in the
00:26new
00:26strategy. What do we need to know? Yeah, Apple's got a jam-packed product portfolio over the next
00:31few years. And part of that is a big overhaul of the iPad lineup. And so this fall, you're going
00:37to
00:37see one of the biggest ever updates to the iPad mini. It's getting an OLED screen, which means
00:42the display quality is now going to be up there with an iPhone or an iPad Pro. This has been
00:48a long
00:48time coming. This is something that tech enthusiasts have been clamoring for. You're also going to see
00:53updates to all the other iPads next year. That includes faster iPad Pros, new iPad Airs,
01:00and a new entry-level iPad. And the backdrop here is that Apple has made all of the iPads more
01:05expensive in recent weeks because of the memory shortage, right? Some of them went up by $100.
01:10Some of them went up by $150. Some of them went up by $200. So now you need upgrades to
01:16the product
01:17to make them more worthwhile in this competitive environment where you have great tablets from
01:22other companies like Amazon, Samsung, and the like. Mark, this is the first opportunity you and I
01:28have had to discuss Apple's AI plan for China. There were some developments this week in how
01:36they're able to put an AI product into that market. Could you just explain the basics of it to us?
01:41So right now, Apple intelligence inside of the United States and the rest of the world,
01:48for the most part, uses models from Apple on device, models from Apple in the cloud. And then
01:54there's partners for some features that Apple doesn't do so well. So Search, they work with
01:59Google, and then they work with OpenAI as sort of a fallback for Siri. If you ask it something it
02:05doesn't know the answer to, it'll query ChatGPT if you allow it to. So for China, there's a few nuances.
02:12For Search, they're working with Baidu. For that chatbot, the OpenAI replacement,
02:16they're working with Baidu. Obviously, OpenAI, ChatGPT is not available in that part of the world.
02:22But then there's the Alibaba component. And so the phones in China will continue to use
02:27the on-device Apple models. But there will be a layer on top using Alibaba AI technology
02:34that I call a censorship filter. And so what this will do is we'll keep the phone in constant
02:40connection with the Chinese government. So as there's updated models that are hitting the iPhone,
02:45Apple, of course, is always updating its models in the background. Those will need to be approved
02:49every so often with the Chinese government. And this type of censorship filter is what other
02:55companies in China who operate have to do. Xiaomi, Huawei, the other phone providers with AI technology
03:01technology on their phones.
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