EU Targets China EVs For Tariffs Despite Opposition Just to Cover Biden's Mistake

"The European Union plans to impose tariffs on imported Chinese electric vehicles, marking an early victory for officials who view the imports as a threat to the region's powerful car sector despite deep divisions in Europe over the issue.

The baseline level of tariffs, calculated at 21%, would come on top of the EU's existing 10% tariff on cars, the bloc said Wednesday. While some individual companies would face lower or higher tariffs -- up to a total of 48.1% for Chinese company SAIC -- they are still a fraction of the duties the U.S. announced recently, likely blunting how much they can disrupt the flow of Chinese EVs to the continent.

China was the source of nearly one in five European sales of fully electric vehicles last year and that proportion should grow, according to data from green lobby group Transport & Environment. Concerns have grown in Europe that China's low production costs and what European officials found are hefty state subsidies could soon price out European carmakers.

Brussels' pushback against China is controversial -- and not just in China. The tariffs' most vocal opponents include Europe's largest carmakers, which are concerned about retaliation in China, a vast and highly profitable market on which they have become dependent. This reliance has complicated Europe's effort to follow the U.S. in raising barriers to Chinese imports.

If talks with China don't lead to an immediate resolution, the tariffs will start to apply on July 4, but the money would only be collected if member states approve a decision to extend the duties into the fall. Officials from some countries, including Germany, Sweden and Hungary, have criticized the push to issue tariffs but the bar for blocking them in the fall is high.

At stake, economists said, isn't just the future of an industry that is among Europe's largest employers. The outcome could determine whether and how much Beijing's industrial offensive, which some have dubbed the second China shock after the country's conquest of consumer goods manufacturing in the early 2000s, reshapes the economies of the West.

"China is trying to play divide and conquer," said Gregor Sebastian, a senior analyst at Rhodium, a think tank. "With some like Germany and France it's using sticks, going after car exports and agricultural products. With countries like Spain, Italy and Hungary, the carrot would be promising more EV investments."

Among the tariffs' opponents in Europe is Volkswagen, even though the German carmaker is under increased competition from the new breed of Chinese EV makers that are challenging the dominance of Western manufacturers in China and abroad.

A look at VW's sprawling EV complex in Hefei, China's answer to Silicon Valley, goes some way to explaining the company's position. There, more than a thousand robots are busy assembling a sporty all-electric SUV that VW is building here for export to Europe. The plant is one of the company's most efficient in the world, according to VW officials, who said it has helped the company drastically cut the time needed to make a car, from design to mass-market production -- a feat VW describes as "China Speed."

As the factory shows, VW has become deeply entwined with China -- not just as the source of 33% of the company's sales, but also as a production base for exports. German carmakers like VW campaigned against proposed European import tariffs on Chinese EVs because maintaining their access to the Chinese market matters more. Some German suppliers have welcomed the rise of Chinese carmakers that are now among their customers.

"We stand for fair and open trade and do not want additional protectionist measures," Ralf Brandstatter, CEO of VW's China business, said in a recent interview. "We have to adapt to this new situation instead of putting up new barriers."

Germany is the EU's largest auto market and biggest producer of vehicles and components. As the EU's largest economy, its support can often make or break EU initiatives. Berlin has also been an ally in China's effort to blunt the EV tariffs, lobbying Brussels against them.

In April, Chancellor Olaf Scholz of Germany took a three-day trip to China flanked by a large business delegation. During the visit, which included a meeting with Chinese leader Xi Jinping, Scholz played down the risks from cheap Chinese EV imports.

Last month, another official visit drew less attention but provided a starker example of German carmakers and politicians working together to promote good relations with China. The northern German state of Lower Saxony, one of VW's biggest shareholders, led a delegation to Hefei, home to the ultramodern VW plant. The message: Germany won't decouple from China.

"In these turbulent times in which there are many unresolved issues between Europe and China and the U.S. and China . . . we have to remain in dialogue with each other," Lower Saxony Prime Minister Stephan Weil told The Wall Street Journal during the trip.

The EU -- which last year ran a 291 billion euros trade in goods deficit with China, equivalent to $313 billion -- has hardened its position on China. In addition to the EV tariffs, the commission has opened investigations into alleged Chinese subsidies for companies in sectors ranging from clean energy to security equipment.

Some member states worry that this could invite retaliation. "We should not forget: European manufacturers, and also some American ones, are successful on the Chinese market and also sell a lot of vehicles that are produced in Europe to China," Scholz said recently.

Chinese government officials have warned that China would retaliate against any EU tariffs. Facing a saturated domestic market and 100% U.S. import tariffs, the likes of BYD, Polestar and SAIC need to expand to Europe to realize their global ambitions.

During a recent visit with Spanish government officials and to Chinese EV maker Chery's factory in Barcelona, China's commerce minister, Wang Wentao, urged the Spanish government to lobby Brussels against the coming tariffs. Wang and a deputy also held meetings last week in Greece, Poland and Portugal -- all countries where China has made important investments.

Later in the week, during a visit to Spanish auto supplier Gestamp, Spain's industry minister, Jordi Hereu, expressed skepticism about the EU's planned tariffs, and called on Brussels to provide aid to build up key industries at home instead. "I don't believe in trade wars, because I believe in international trade, but I do believe in policies to strengthen reindustrialization," he said.

The China Chamber of Commerce to the EU protested the planned tariffs, calling them a protectionist measure that will harm Chinese EV companies and damage economic and trade relations between the EU and China. Yet tariffs alone are unlikely to halt the growing influence of Chinese carmakers.

Investor Zhejiang Geely Holding controls Sweden's Volvo Cars, and the group's backer, billionaire Li Shufu, has also invested in British automotive companies including Lotus. Li holds nearly 10% of Mercedes-Benz stock while China's BAIC holds another 10%. China's state-owned chemical group Sinochem is the biggest shareholder in Italy's Pirelli.

Chinese EV makers are also beginning to set up production in Europe. BYD announced plans last year to build a Tesla-style Gigafactory in Hungary, while Chery has created a joint venture with Spain's EV Motors to assemble vehicles in Barcelona. China's leading battery makers including Contemporary Amperex Technology, Gotion, and BYD have built or plan battery cell manufacturing plants in Europe.

New factories accounted for 78% of Chinese foreign direct investment in Europe last year, up from 51% the year before, according to a study by the Mercator Institute for China Studies and Rhodium. The push was led by investment in battery plants in Hungary, Germany and France.

Chinese auto executives argue that given a fair choice, European consumers are likely to favor Chinese cars, not because of their price but because they are better. Chinese consumers, they point out, gradually turned away from Western brands for the same reason." [1]

Why is the European Union Commission drowning the competitiveness of European Union industry and the Green Deal, even though those tariffs will not stop Chinese car sales in Europe? Aim is to follow the US. This is a propaganda move aimed at ingratiating himself with Biden, while also trying to increase the Commission's influence within the EU. Americans ask all the time what phone number to use to call the European Union. The commission is trying to imply that old lady Ursula von der Leyen's number is that number. An old schemer, whom no one elected for this job, maneuvers, trying to stay in the post.

1. EU Targets China EVs For Tariffs Despite Opposition. Boston, William; Kim Mackrael.  Wall Street Journal, Eastern edition; New York, N.Y.. 13 June 2024: A.1.

 

Įvedama karo prievolė visiems Lietuvos berniukams

 Tikrai Lietuva yra laimingiausia šalis pasaulyje. Mokytis nereikia, dirbti nereikia, tik šaudyk ir vėją gaudyk. Statėme gerovės valstybę, bet vėl pastatėme mūsų mylimiausią komunizmą, ar ne, Jūsų Ekselencija Nausėda? 

Mes, lietuviai, atsisakome gyventi realiame pasaulyje, dalyvauti ekonominėje konkurencijoje ir pereiname į svajonių pasaulį. Juokinga musė baido visus jos beverčiais ginklais vien tam, kad išsigimę Landsbergiai toliau galėtų sekti mums pasakas ir likti valdžioje.
   
 

Prekybos elektriniais automobiliais karas kelia grėsmę prabangiems automobiliams --- Pekino ir Europos Sąjungos tarifai smogs į Kiniją keliaujantiems „Porsche“ modeliams

„Europos politikai neturi lengvų galimybių susidoroti su Kinijos elektromobiliais.

 

 Įveskite jiems 100% tarifą, kaip praeitą mėnesį padarė prezidentas Bidenas, ir Kinija gali lengvai atkeršyti daugiau, nei 300 000, prabangių automobilių, kuriuos kasmet gauna iš Europos Sąjungos. Tačiau leiskite Kinijos elektromobiliams įvažiuoti į ES taikant dabartinį 10 % tarifą, tada Kinijos įmonės turi atvirą kelią užimti rinkos dalį, atsižvelgiant į įspūdingas technologijas ir maždaug 30 % sąnaudų pranašumą.

 

 Šią savaitę Europos Komisija turėtų paskelbti devynis mėnesius trukusio Kinijos elektromobilių subsidijų tyrimo rezultatus. Labiausiai tikėtina, kad jos veiksmai yra atsargus vidurio kelias – 25–30% tarifas, dėl kurio Europos elektromobiliai būtų iš esmės konkurencingi pigesnių Kinijos importo kaštų atžvilgiu. Tai vis tiek gali sukelti atsakomųjų veiksmų, tačiau ES vykdomoji institucija turi ką nors padaryti, kad apsaugotų ekonomiškai ir strategiškai svarbią pramonę.

 

 Ši politinė tikrovė tik dar labiau išryškėja po praėjusį savaitgalį vykusių Europos Parlamento rinkimų, kuriuose buvo apdovanotos dešiniųjų populistų partijos Prancūzijoje ir Vokietijoje.

 

 Artimiausiais mėnesiais nauja Europos Komisija peržiūrės politinį atsaką į EV tyrimą.

 

 Argumentus dėl pigių kiniškų elektromobilių, nes jie padeda Europai siekti klimato katastrofos stabdymo, nustums į antrą planą prieš ekonominį protekcionizmą.

 

 Apie tai, kokią rinkos dalį kiniški automobiliai galėtų užimti Europoje, bent jau trumpuoju laikotarpiu, yra diskutuotina. Remiantis „Schmidt Automotive Research“ duomenimis, 2023 m. trečiąjį ketvirtį po kelerių metų trukusio nedidelio augimo jie sudarė maždaug 1 iš 10 naujų elektromobilių, parduotų Vakarų Europoje. Tačiau jų dalis sumažėjo per paskutinius tris metų mėnesius, kai Prancūzija į savo subsidijų programas neįtraukė Kinijoje pagamintų modelių. Didelės nuolaidos Kinijos prekių ženklams taip pat rodo, kad pažanga stabdoma.

 

 Daugelis Europos vartotojų gali būti nepasiruošę išdidžiai Kinijos prekių ženklų, tokių, kaip BYD. Iki šiol perkamiausias „kiniškas“ prekės ženklas Europoje yra MG, kuris istoriškai buvo britų, bet dabar priklauso Kinijos SAIC. Duomenų teikėjo „Jato Dynamics“ teigimu, net tai nebuvo vienas iš 10 balandį geriausiai parduodamų elektromobilių modelių ES.

 

 Daug daugiau europiečių, be jokios abejonės, pereitų į kiniškus prekių ženklus dėl žemiausių kainų, reklamuojamų Kinijoje, kurioje vyksta žiaurus kainų karas. Tačiau praėjusiais metais BYD savo automobilius išleido stebėtinai aukštomis kainomis, galbūt, turėdama omenyje ES tyrimą ir galimybę pagražinti jos maržas, kad kompensuotų sunkią vidaus rinką.

 

 Vis dėlto Kinijoje pagamintų elektromobilių Europoje keliama ilgalaikė grėsmė akivaizdi ir ES nerizikuos. Viena iš didesnių tarifų pasekmių bus didesnė vietinė gamyba. BYD jau stato gamyklą Vengrijoje, o „Volvo Cars“ kitais metais pradės gaminti savo naująjį EX30 Belgijoje, o ne gabens jį į Europą iš Kinijos, kaip tai daro šiuo metu. Tesla, kuri savo gamykloje netoli Šanchajaus gamina 3 modelį Europai, tikriausiai, turės sekti pavyzdžiu.

 

 Kitos pasekmės priklausys nuo Kinijos atsako. Kinijos prekybos rūmai prie ES praėjusį mėnesį pranešė, kad Pekinas svarsto įvesti 25% mokestį importuojamiems automobiliams su dideliais varikliais. Dabartinis Kinijos tarifas transporto priemonių importui iš ES yra 15 proc. Šis žingsnis ypač paveiktų „Porsche“, nes apie ketvirtadalį pajamų ji gauna Kinijoje ir visus automobilius gamina Vokietijoje.

 

 Ironiška tai, kad investuotojai anksčiau manė, kad prabangūs automobiliai buvo palyginti izoliuoti nuo Kinijos elektromobilių importo grėsmės. Praėjusiais metais rinka nerimavo dėl konkurencinio iššūkio masinės rinkos gamintojams, tokiems, kaip Prancūzijos „Renault“. Paryžiaus ir Briuselio politikams sureagavus, susirūpinimas pasikeitė, o tai prisidėjo prie atotrūkio tarp akcijų rinkos rezultatų: „Porsche“ akcijos per metus sumažėjo 37%, o „Renault“ – 55%.

 

 Galų gale tikėtina, kad bus sudarytos paliaubos, dėl kurių prekyba tęsis. ES yra labiau priklausoma nuo eksporto į Kiniją, nei JAV, todėl ES gyvens, atmetus Vašingtono vykdomą izoliacionizmą. Tai gali būti priežastis vėl nerimauti dėl „Renault“, nors atrodo, kad prancūzų kompanija daro pažangą, mažindama elektromobilių išlaidas.

 

 Tai rodo vienintelį tvarų Europos atsaką į Kinijos elektromobilius: suderinti jų technologijas ir sąnaudų struktūrą, bent jau tiek, kiek leidžia vietos skirtumai. Didesni tarifai gali atpirkti tik šiek tiek laiko." [1]

 

1. EV Trade War Threatens Luxury Cars --- Tit-for-tat tariffs between Beijing and the European Union would hit Porsches heading to China. Wilmot, Stephen.  Wall Street Journal, Eastern edition; New York, N.Y.. 12 June 2024: B.12. 

EV Trade War Threatens Luxury Cars --- Tit-for-tat tariffs between Beijing and the European Union would hit Porsches heading to China.

"Europe's politicians have no easy options for dealing with Chinese electric vehicles.

Slap a 100% tariff on them, as President Biden did last month, and China can easily retaliate against the more than 300,000 luxury cars it gets annually from the European Union. Let Chinese EVs into the EU with the current 10% tariff, though, and Chinese companies have an open road to take market share, given impressive technology and a roughly 30% cost advantage.

This week, the European Commission is expected to announce the results of a nine-month investigation into Chinese EV subsidies. Its most likely course of action is a cautious middle ground -- a tariff of 25% to 30% that would make European EVs broadly competitive with lower-cost Chinese imports. This could still trigger retaliation, but the EU's executive body has to do something to protect an economically and strategically important industry.

This political reality only looms larger after this past weekend's elections for the European Parliament, which rewarded right-wing populist parties in France and Germany.

In the coming months a new European Commission will review the policy response to the EV investigation. 

Arguments for going easy on cheap Chinese EVs, because they help Europe's climate goals, will presumably take a back seat to economic protectionism.

Just how much market share Chinese cars might take in Europe, at least in the short term, is debatable. After years of modest gains, they accounted for roughly 1 in 10 new EVs sold in Western Europe in the third quarter of 2023, according to Schmidt Automotive Research. But their share fell back in the final three months of the year, when France excluded China-made models from its subsidy program. High discounts on Chinese brands also point to stalling progress.

Many European consumers might not be ready for proudly Chinese brands such as BYD. The bestselling "Chinese" brand in Europe by far is MG, which is historically British but now belongs to China's SAIC. Even it wasn't one of April's 10 bestselling EV models in the EU, according to data provider Jato Dynamics.

Many more Europeans would no doubt be converted to Chinese brands by the rock-bottom prices advertised domestically in China, which is in the throes of a vicious price war. But BYD launched its vehicles last year at surprisingly high prices, perhaps mindful of the EU's investigation as well as the potential to juice its margins to compensate for a tough home market.

Still, the long-term threat posed by Chinese-made EVs in Europe is clear, and the EU won't take any chances. One consequence of higher tariffs will be more local production. BYD is already building a factory in Hungary, while Volvo Cars will start producing its new EX30 in Belgium next year, rather than shipping it to Europe from China as it currently does. Tesla, which makes its Model 3 for Europe in its factory near Shanghai, will probably need to follow suit.

Other consequences will depend on China's response. The China Chamber of Commerce to the EU said last month that Beijing was considering a 25% tax on imported cars with large engines. China's current tariff on vehicle imports from the EU is 15%. This move would hit Porsche in particular as it makes about one-quarter of its revenue in China and produces all its cars in Germany.

The irony is that investors previously assumed luxury cars were relatively insulated from the threat of Chinese EV imports. Last year, the market was instead worried about the competitive challenge to mass-market manufacturers such as France's Renault. As politicians in Paris and Brussels responded, concerns shifted, contributing to a gaping divide in stock-market performance: Porsche's stock is down 37% over one year while Renault's is up 55%.

In the end, some kind of truce that keeps trade flowing is likely. The EU is more dependent on exports to China than the U.S., ruling out the kind of isolationism Washington is moving toward. That might be a reason to worry more about Renault again, though the French company appears to be making progress in cutting EV costs.

This points to the only sustainable European response to Chinese EVs: matching their technology and cost structure, at least as far as local differences allow. Higher tariffs can only buy a little time." [1]

1. EV Trade War Threatens Luxury Cars --- Tit-for-tat tariffs between Beijing and the European Union would hit Porsches heading to China. Wilmot, Stephen.  Wall Street Journal, Eastern edition; New York, N.Y.. 12 June 2024: B.12. 

 

„Apple“ dirbtinio intelekto evoliucija nepasiekia revoliucijos lygio

„Bent Apple turi dar tris mėnesius bandyti dar kartą.

 

 „IPhone“, „iPad“ ir „Mac“ kompiuterių gamintojas pirmadienį pagaliau prakėlė šydą nuo savo pirmųjų generatyvinio dirbtinio intelekto (AI) pasiūlymų. Kaip ir tikėtasi, naujos galimybės, plačiai žinomos, kaip „Apple Intelligence“, bus glaudžiai įtrauktos į bendrovės operacinės sistemos atnaujinimus, kurie pasirodys vėliau šiais metais. Be to, kaip ir tikėtasi, jie apims didelį Siri, 12 metų senumo „Apple“ skaitmeninio asistento, kuris dažnai buvo išjuokiamas, kaip kažkas mažiau, nei protingas, atnaujinimą.

 

 Atsižvelgiant į įmonės mastą ir didžiulį žiniasklaidos bei investuotojų susidomėjimą jos kryptimi, „Apple“ jau seniai sunkiai galėjo pateikti staigmenų jos renginiuose. Tačiau šį kartą statymas buvo ypač didelis. „Apple“ įsitraukimo į dirbtinio intelekto lenktynes ​​šmėkla suvalgė jos trilijonus dolerių vertės konkurentus pastaruosius 18 mėnesių.

 

 Tai sukėlė investuotojų jaudulį. Praėjusiais metais „Apple“ akcijos atsiliko nuo didelių technologijų kolegų, tačiau nuo antrojo fiskalinio ketvirčio ataskaitos praėjusį mėnesį iki pasaulinės kūrėjų konferencijos pradžios pirmadienį akcijos šoktelėjo 14%. Tai didžiausias akcijų pelnas per tą dešimtmetį.

 

 Tačiau daugelis naujų funkcijų, kurias „Apple“ demonstravo pirmadienį, pvz., vaizdų paieška ir pagalba kuriant el. laiškus ir pranešimus, atrodė pažįstamos, kaip tos, kurias jau siūlo nauji „Microsoft“ ir „Alphabet“ Google AI įrankiai.

 

 „Apple“ taip pat aiškiai nurodė, kad pirmadienį paskelbtomis AI paslaugomis, įskaitant prieigą prie naujausios „OpenAI“ ChatGPT versijos, bus galima naudotis nemokamai. Tai palieka atvirą klausimą, kaip įmonė gaus papildomų pajamų iš naujausių technologijų.

 

 Taip pat neaišku, kiek „Apple“ kainuos „OpenAI“ partnerystė, atsižvelgiant į brangų AI skaičiavimo pobūdį ir tvirtą OpenAI pranašumą šioje erdvėje. Iki pirmadienio prekybos pabaigos „Apple“ akcijos smuktelėjo beveik 2 proc., o tai yra blogiausias akcijų kritimas po pasaulinės kūrėjų konferencijos pradžios nuo 2010 m. Tačiau antradienį akcijos vėl pakilo ir uždarė daugiau, nei 7 proc.

 

 „Apple“ AI debiutas visada buvo sudėtingas. Skirtingai nuo kolegų, kurie jau žengė į technologiją, „Apple“ didžiąją dalį savo verslo sukuria, parduodant įrenginius.

 

 Ir bendrovė pirmadienį pranešė, kad daugelis jos naujų AI funkcijų bus apdorojamos įrenginyje, o ne pasikliaujama debesų kompiuterijos tinklais.

 

 Dėl to „Apple“ aparatinės įrangos produktai yra pagrindinė jos AI strategijos dalis. Tačiau šie produktai labai retai debiutuoja bendrovės kūrėjų konferencijose, kurios paprastai yra skirtos būsimiems operacinių sistemų, maitinančių jos įrenginius, atnaujinimams. Nauji iPhone – svarbiausia Apple produktų linija – paprastai pristatomi rugsėjo pradžioje.

 

 Taigi, yra didelė tikimybė, kad „Apple“ dalis jos dirbtinio intelekto miltelių išliks sausi iki tol. Ateinantis „iPhone“ ciklas yra svarbus po trejų metų iš eilės prastų pardavimų. Ir AI gali būti ne pats lengviausias būdas parduoti būsimiems „iPhone“ pirkėjams.

 

 Pirmadienį paskelbtoje ataskaitoje UBS analitikas Davidas Vogtas citavo neseniai atliktą išmaniųjų telefonų naudotojų apklausą, kuri parodė, kad tik 27% žmonių, gyvenančių už Kinijos ribų, rodo susidomėjimą įrenginiu, turinčiu generavimo dirbtinio intelekto galimybes.

 

 Kaina ir privatumas buvo nurodytos, kaip didžiausią susirūpinimą keliančios, sritys.

 

 „Apple“ privatumo reputacija yra pakankamai tvirta.

 

 Bendrovės rinkodaros gebėjimai taip pat pasitvirtino net per silpnus „iPhone“ ciklus, nes „Apple“ sugebėjo perkelti daugiau vartotojų į brangesnes „iPhone“ „Pro“ versijas, kuriose yra geresni lustai ir fotoaparatai. Kitas didelis „Apple“ dalykas turės būti AI pardavimas.“ [1]

 

1. Apple's AI Evolution Isn't Quite a Revolution. Gallagher, Dan.  Wall Street Journal, Eastern edition; New York, N.Y.. 12 June 2024: B.12.

Apple's AI Evolution Isn't Quite a Revolution

"At least Apple has three more months to try again.

The maker of the iPhone, iPad and Mac computer finally lifted the veil Monday on its first generative-artificial-intelligence offerings. As expected, the new capabilities, known broadly as Apple Intelligence, will be tightly woven into the company's operating system updates coming later this year. Also as expected, they will include a major upgrade for Siri, Apple's 12-year-old digital assistant that has often been derided as something less than intelligent.

Apple has long had a hard time springing any surprises at its events, given the company's scale and the immense media and investor interest in its direction. But the stakes were especially high this time around. The specter of Apple's entry into the AI race has consumed its trillion-dollar rivals for the past 18 months.

That sparked some excitement among investors. Apple's shares have lagged behind those of its big tech peers over the past year, but the stock jumped 14% between its fiscal-second-quarter report last month and the start of its Worldwide Developers Conference on Monday. That is the biggest gain the shares have made in that period in a decade.

But many of the new features Apple demonstrated on Monday -- such as image search and help composing emails and messages -- looked familiar to those already offered by new AI tools from Microsoft and Alphabet's Google.

Apple also made it clear that the AI services announced Monday -- including access to the latest ChatGPT version from OpenAI -- will be free to use. That leaves open the question of just how the company will generate additional revenue from the latest technology.

Also unclear is what the OpenAI partnership will cost Apple given the expensive nature of AI computing and OpenAI's strong lead in the space. Apple's shares slipped nearly 2% by the close of trading Monday, which is the worst drop the stock has seen following the kickoff of its Worldwide Developers Conference since 2010. But the shares picked back up Tuesday, closing with a gain of more than 7%.

Apple's AI debut was always going to be a complicated one. Unlike peers that have already made forays into the technology, Apple generates the bulk of its business through sales of devices. 

And the company said Monday that many of its new AI features will be processed on-device, as opposed to relying on cloud-computing networks. 

That makes Apple's hardware products a key part of its AI strategy. But those products very rarely make a debut at the company's developer conferences, which typically are geared toward coming updates of the operating systems that power its devices. New iPhones -- Apple's most important product line -- are typically unveiled in early September.

Hence, there is a good chance Apple is keeping some of its AI powder dry until then. The coming iPhone cycle is an important one after three consecutive years of weak sales. And AI might not be the easiest sell to prospective iPhone buyers.

In a report Monday, UBS analyst David Vogt cited a recent survey of smartphone users that found only 27% of those outside of China are indicating interest in a device with generative AI capabilities. 

Price and privacy were cited as the areas of highest concern.

Apple's credentials in privacy are solid enough. 

And the company's marketing prowess also has proven out even during weak iPhone cycles, since Apple has been able to move more users to more-expensive Pro versions of the iPhone, which sport better chips and cameras. Upselling AI will need to be Apple's next big thing." [1]

1. Apple's AI Evolution Isn't Quite a Revolution. Gallagher, Dan.  Wall Street Journal, Eastern edition; New York, N.Y.. 12 June 2024: B.12.