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Newcomer Pod · Startups & Venture · October 2026
Kantrowitz's explanation for Apple's AI stumbles: siloed teams suit a company refining well-specified hardware, but AI needs cross-team collaboration. He adds that an engineer who worked on HomePod told him he never saw the device until it shipped.
Yeah, I mean, for the time being, Apple just needs to sell iPhones. I know that's cliche, but like they did not sell a lot of iPhone 16s. They marketed it wrong. They talked about Apple intelligence. Apple intelligence didn't work. It
…it out, we get it right, we're honest, we believe in real values and principles. And instead, it was like shameless hucksterism for nothing. And they marketed phones on features that they didn't even seem to deliver on. Yeah, it was very embarrassing for someone who likes Apple usually. Well,
underneath the surface there, there's a lesson about Apple, which is that Apple is really good at being last and first on hardware. And of course, they have the operating system, but anything that's defined, right? Like hardware has a spec, and you want to make a battery last longer. You want to make a screen, you know, give a screen more fidelity. You want to make a case stronger. These are things you can optimize towards. And the last decade, maybe a decade and a half, Apple has been like a very efficient refiner. It's just refining all these products. And the interesting thing about being a refiner is you don't need your groups to talk to each other. So you're making the battery, the battery group doesn't talk to the screen group. And so you just kind of relentlessly focus and you're not distracted on your task at hand. With AI, you don't get that. You don't get that luxury. And Apple has kept its employees in silos for the reason I just explained. And they kept that going for AI. So, for example, within Apple, the people working on the self-driving car when it existed, which is an AI project, couldn't talk to the people doing face ID within Apple. They're both…
Wow. Yeah.
So this is the problem: they did not break the silos down. And so, like, then they say, all right, we're going to ship Apple intelligence. And it's like, well, the AI doesn't talk to anything. It's like, no shit. You don't allow them to. So I do see the signs of change within Apple. The new series…
For you, the goal is to sell iPhones. I mean, that's been true. That's sort of the Tim Cook era, which is, all right, we didn't invent anything new, really, but we sold iPhones. Like, do you think that's true for the next five years still, or they need a new thing? So,