Tech
Apple Intelligence users: They’re slobs just like us. Still from Apple Intelligence commercial.
Apple Intelligence users: they’re slobs just like us. (Still from Apple Intelligence commercial.)
Apple Intelligence?

Man, what the heck happened to Apple’s ads?

“It’s like if we saw the pope drunk.”

Rani Molla

Apple has long been known for its iconic ads. Their marketing has been gorgeous and the message aspirational: be better, think different.

Apple’s marketing machine has a high bar to hit and lately, some think it’s missed that mark. Apple’s latest series of ads are meant to show off the capabilities of Apple Intelligence. Some say the takeaway is that Apple consumers are kind of dumb.

“Because Apple did it, we’re all disappointed,” Michael Duda, managing partner at brand consultancy Bullish, told Sherwood News. “It’s like if we saw the pope drunk.”

Typically Apple ads have focused more on building the Apple brand — showing it to be sleek, smart, and out of the ordinary — than individual product features. They have high production values and good music. They cast Apple users as the characters we wish to be (are you a Mac or a PC?).

In the new Apple Intelligence ads, customers come off as simpletons and slackers: not being prepared for work, forgetting their spouse’s birthdays or people’s names, holding minor grievances and hoping to foist their work on someone else. In comes Apple Intelligence to save the day... with examples of technology its competitors (including Apple itself) already had.

In one ad, a man is wasting time at work — playing with his adjustable chair, making noises, pulling pieces of Scotch tape. He then writes an unbusinesslike email to his boss, trying to pawn off his work. He uses an AI writing tool to make the email sound professional, if a bit too formal and wordy (a lot like capabilities ChatGPT has had for a while). Lo and behold, his boss is impressed!

In another ad, a woman forgets her husband’s birthday and seemingly resents her daughters for having remembered. She seems annoyed and petty. She uses Apple Intelligence to create a musical slideshow of photos of her husband woodworking with the kids. (iPhone users might note that this is something iPhone has done automatically for years.) He’s touched!

Both ads end with the main characters looking self-satisfied as a song comes in with the words, “I am genius.” To me they’re kind of funny, but also cringe and not very impressive when it comes to the actual tech they’re demonstrating. They’re also definitely not what I expect from Apple.

These ads come after a widely-panned iPad ad that Apple ended up apologizing for this spring. In that one, an industrial press crushes the tools of humanity’s creative and cultural legacy — instruments, typewriters, paints, cameras, books. From that waste comes the “most powerful” and “thinnest” iPad ever. Artists and critics saw it as a tone-deaf representation of all the real-life things cultural, capital, and careers technology is destroying.

“They’re trying to extoll the product benefits,” Duda said. “It came across as you’re crushing my creative dreams.”

The company has obviously felt the need to switch things up, as iPhone sales, which make up about half the company’s revenue, have slowed in recent years.

“You don’t typically see a big brand talk about features like a local furniture store talking about their couch on sale”

But is it working?

A market-research firm called Grow Progress tested the two ads above with 2,400 Americans for Sherwood to see how it made them feel about Apple and its artificial intelligence. Using randomized controlled trials, Grow Progress found that people generally liked them.

The memory-movie ad gave viewers a more favorable view of Apple, especially among those who don’t own Apple products, the study found. The writing-tools one made people who already own Apple devices more likely to say Apple pushes technological boundaries.

The experts we spoke to said it’s not so much that these newer ads are bad, per se, but they are unexpected.

“You don’t typically see a big brand talk about features like a local furniture store talking about their couch on sale,” Greg Schwartz, founder of TV advertising agency Household, said. “It’s a little disorienting to see from Apple, in the same way it would be for Coke talking about bubbles in the bottle. They wouldn’t do that. They don’t need to.”

But perhaps, he said, Apple felt that the addition of generative AI — which Apple is hoping will spur iPhone sales among consumers holding onto their products longer — needs more explanation.

Apple didn’t respond to requests for comment on its branding strategy.

Schwartz said the ads did a good job of clearly communicating the benefits of Apple Intelligence. (He also pointed out that it got people — like me — talking, and there’s no such thing as bad publicity.) That could potentially be good for Apple’s top line.

“I do think it’s similarly effective and maybe more effective at selling products than the more eye-catching brand ads that we’re used to,” he said.

“In a vacuum, they’re good TV commercials”

But others worry that such pedestrian ads could detract from the high-brow mystique the brand has built up over the years.

“In a vacuum, they’re good TV commercials,” Graham Douglas, cofounder and creative director at creative-strategy company Gus, said. “They’re fun, there’s craft, they’re memorable — creatively they’re fine.”

But, he said, you could slap a Microsoft, Google, or Samsung logo at the end of these Apple Intelligence ads and no one would be the wiser. In turn, that sort of sameness and incremental product comparison could detract from consumers’ willingness to pay a premium for what are essentially the same products as their competitors.

People pay for the Apple brand, not the features.

“It’s never been, ‘It’s going to send an email better than Blackberry,’” Douglas said. Historically, Apple’s ads have tried to “empower us to be more than we are: more creative, have more ingenuity, be different.”

What should Apple do?

“Find a way to present Apple Intelligence in way that feels like it’s not the basic use case of AI that every other tech company can implement, effectively promoting what Gmail has done for two years.”

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Jefferies downgrades Apple to “underperform,” calls iPhone sales expectations “excessive”

Sure, Apple’s latest iPhone is selling better than some previous models, but that’s already reflected in the stock, Jefferies analysts wrote in a note today. In it they downgraded the stock to “underperform” and kept the price target roughly flat at $205.

The analysts argue the sales bump stems from high trade-in values and the lack of price hikes, rather than “new form factor or tech innovations.” As we recently noted, it could also have something to do with a natural upgrade cycle rather than consumers going nuts over NITS.

The analysts say the positive sales momentum for the iPhone 17 has engendered “excessive expectations” for the replacement cycle as well as for the company’s upcoming foldable iPhone.

“We do not doubt AAPL will be able to make the most beautiful foldable phone in the market, but the question is the TAM [total addressable market] of a US$2K phone,” they wrote.

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JPMorgan reiterates “underweight” rating after Tesla delivery beat

While Tesla delivered a massive delivery beat yesterday, JPMorgan analyst Ryan Brinkman wants to remind investors to put that beat into context:

  1. He noted that the surge was likely a temporary one thanks to pulled-forward demand by consumers hoping to capitalize on the $7,500 tax credit that ended September 30. That pull forward will necessarily mean fewer purchases later, and the end of the tax credit “ultimately will negatively impact Tesla deliveries as soon as October 1.” He added that the analyst consensus still expects Tesla’s full-year sales to decline.

  2. Tesla’s beat, Brinkman said, was in part due to analysts having dramatically lowered their previous estimates amid falling sales. While the nearly 500,000 deliveries in Q3 were about 12% higher than the analyst consensus right before the numbers came out, he noted that analyst expectations have been grinding lower for years. He pointed out that Street estimates for Q3 2025 deliveries peaked at 1.1 million in 2022. While the company missed that peak estimate by 56%, the stock is up 81% in the intervening years.

JPMorgan raised its third-quarter earnings-per-share and free cash flow estimates on the delivery numbers, but reiterated its “underweight” rating for the stock.

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OpenAI’s Sora has bumped Google’s Gemini and OpenAI’s ChatGPT from the top of the App Store

OpenAI’s AI-only social media app, Sora, launched three days ago and is already No. 1 on the US free App Store, where it has displaced regular favorite AI apps Gemini from Google and ChatGPT, OpenAI’s main app. It’s an especially impressive feat given that for now the highly addictive, legally murky app is invite-only.

Of course, many a buzzy app has surged up the App Store ranks only to fizzle over time. We’ll see what happens with Sora.

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Jon Keegan

OpenAI’s hot Sora video app is a copyright lawsuit waiting to happen

OpenAI has generated some serious buzz surrounding its new Sora video generation app. The app is currently No. 3 on the iOS free app leaderboards, even though it’s invitation-only for the time being.

But users have been flooding social media with videos generated by Sora, and in addition to a “Skibidi Toilet” Sam Altman and the OpenAI CEO dressed as a Nazi, the app is able to create videos featuring iconic characters from Disney, Nintendo, and Paramount Skydance.

On the system card for the Sora 2 AI model (which powers the Sora app), OpenAI says it was trained on things found on the internet:

“Sora 2 was trained on diverse datasets, including information that is publicly available on the internet, information that we partner with third parties to access, and information that our users or human trainers and researchers provide or generate.”

This seems like an invitation for a big copyright lawsuit, along the lines of the one Disney, Dreamworks, and NBCUniversal recently filed against AI image generator Midjourney.

But OpenAI is trying to flip the responsibility of protecting copyrighted material to the intellectual property owners themselves. According to The Wall Street Journal, OpenAI is allowing copyrighted material in Sora by default, unless copyright holders opt out of the service.

The courts will have to decide if this novel approach to intellectual copyright law works, but government regulators may not be that big of a problem, as Altman has made sure OpenAI is in the good graces of the Trump administration. If OpenAI has to pay up to copyright holders after a lawsuit, what’s a few billion dollars here or there when you’re raising so much capital?

On the system card for the Sora 2 AI model (which powers the Sora app), OpenAI says it was trained on things found on the internet:

“Sora 2 was trained on diverse datasets, including information that is publicly available on the internet, information that we partner with third parties to access, and information that our users or human trainers and researchers provide or generate.”

This seems like an invitation for a big copyright lawsuit, along the lines of the one Disney, Dreamworks, and NBCUniversal recently filed against AI image generator Midjourney.

But OpenAI is trying to flip the responsibility of protecting copyrighted material to the intellectual property owners themselves. According to The Wall Street Journal, OpenAI is allowing copyrighted material in Sora by default, unless copyright holders opt out of the service.

The courts will have to decide if this novel approach to intellectual copyright law works, but government regulators may not be that big of a problem, as Altman has made sure OpenAI is in the good graces of the Trump administration. If OpenAI has to pay up to copyright holders after a lawsuit, what’s a few billion dollars here or there when you’re raising so much capital?

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