🤖 Apple AiOS

…and United brings targeted ads to the skies   It couldn’t have been an email. (Justin Sullivan/Getty Images)   Sponsored by Yesterday’s Market Moves   Dow Jones 38,868 (+0.18%) S&P 500 5,361 (+0.26%) Nasdaq 17,193 (+0.35%) Bitcoin $69,558 (-0.11%) Dow Jones 38,868 (+0.18%) S&P 500 5,361 (+0.26%) Nasdaq 17,193 (+0.35%) Bitcoin $69,558 (-0.11%) Hey Snackers, Japan’s population has been shrinking for decades. Tokyo’s solution to solve plummeting birth rates? [A dating app](. Users are required to pledge they aren’t looking for anything casual. The S&P 500 and Nasdaq rose yesterday to fresh [highs](. Tomorrow’s a big day for US markets with May’s consumer-inflation report due and the Fed’s interest-rate decision. Traders expect the central bank will keep rates steady after last week’s hot jobs report. AIPHONE Apple heaps on the AI at its big conference, while promising to protect users’ privacy Huge news… The calculator app’s coming to iPad and genAI is coming to iOS. Apple gave its own spin on artificial intelligence during its annual developers’ conference yesterday, calling “personal intelligence” its “next big step.” It [introduced]( Apple Intelligence, which infuses gen-AI functions across apps. It can be tapped to rewrite, proofread, and summarize text (think: change the tone of an email, edit a breakup text, sum up an article). And to liven up the group chat, it can turn written ideas into images or create custom emojis (“Genmojis”). - Siri’s makeover: Apple said Siri is better at understanding (its one job, really) and will now let you type requests. Siri can pull info from different apps to better answer your q’s — like finding your partner’s flight info in your texts and cross-referencing it with flight-tracking data and Maps to tell you when you should head to the airport. - OpenAI partnership: Apple confirmed it’s teaming up with OpenAI, allowing users to ask ChatGPT questions and generate images and text within Apple’s tools. Say you ask Siri how to make a five-course meal using lemon-lime Gatorade and Pop-Tarts. Siri will probably ask you if it’s OK to offload that advanced query to CGPT. Privacy push… As device demand slows, tech companies are looking to AI-infused phones and PCs to juice hardware sales. Apple said its system “sets a new standard for privacy in AI.” It’ll process data on-device for many AI tasks, and when the request is too complicated to complete locally, it’ll send it through its new Private Cloud Compute service. Plus, Siri will ask users for their consent before it offloads their questions to ChatGPT (still, Elon Musk [threatened]( to ban Apple devices at his companies). As AI scrutiny intensifies, Apple appears to be drawing boundaries between its offerings and OpenAI’s — which have been the subject of some regulatory messiness. THE TAKEAWAY Apple’s caution is strategic… It’s moved slower than its rival Big Techies on AI, but that may’ve been calculated. By outsourcing some of its AI to ChatGPT and keeping other functions on-device, Apple can stay focused on the two things that have made it shine: hardware and privacy. Instead of sinking billions into AI chips like its rivals, Apple can tap into AI to level up its tech while maintaining a safer distance. [Read this online]( Sponsored by Sector SPDR ETFs The future of A.I. could impact all technology companies. Why continue to take single stock risk? The [Technology Sector ETF (XLK)]( provides investors access to the technology stocks in the S&P 500, all encapsulated within a single security. Why continue to take on the risk of single stock exposure, when you can own the entire technology sector of the S&P 500? Learn more about the [Select Sector SPDR Fund XLK](. Advertiser’s disclosure: All ETFs are subject to risk, including possible loss of principal. Sector ETF products are also subject to sector risk and non-diversification risk, which will result in greater price fluctuations than the overall market. An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (866-732-8673) or visit [www.sectorspdrs.com](. Read the prospectus carefully before investing. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust. RECLINE United Airlines brings targeted ads to seat backs as companies tap their data goldmines Trays up, ads on… That eerie feeling that your phone is listening to you is coming to your United Airlines seat back. Any of United’s 165M fliers trying to kick back with a plane movie like “Madame Web” or “Ticket to Paradise” will see ads tied to what United knows about them (for example: their destination, age group, and ticket class). United believes its [new ad biz]( is the first of its kind in the airline industry. - Buckled in: Fliers who don’t opt out of targeted ads and won’t spend $8 for United WiFi are an advertiser’s dream: a captive audience. United says brands are buying 3.5 hours of attention per traveler. - New jet streams: United’s non-passenger, non-cargo revenue hit $3.2B last year, making up 6% of its total sales. Its ad biz will likely boost that figure. The surveillance state… more like surveillance corporation. United is only the latest company whose main biz isn’t advertising to lean into data-focused ad networks. Retailers like Target, Walmart, Kroger, and Best Buy have been monetizing customer data by [expanding]( into “retail media” (retailers selling ad spots/data). Last week, 75M-member strong Costco said it was turning on the ad-money spigot too. Targeted Rolex ads might appear on Marriott TVs in Vegas hotel rooms, and Uber ads are getting personal (picture: targeting people en route to the US Open with Lacoste ads). Last week, Lyft said it expects its ad biz to hit $400M by 2027. - Retail media can be more effective than social-media ads because folks are targeted at a time when they’re likely to spend. THE TAKEAWAY Customer data is a goldmine… US marketers are expected to spend $55B on retail-media ads this year (Amazon’s share: 74%). Aside from targeted ads, customer data could be used by companies to create [personalized prices]( (think: a pricier coffee for a customer who just got paid). But a recent bipartisan bill is trying to limit how much customer data companies can collect. [Read this online]( What else we're Snackin' - [Bounce]( WNBA viewership has hit a record as fans cheer on high-profile players including Caitlin Clark and Angel Reese. It’s estimated that women’s elite sports could generate a record $1B in revenue this year. - [Jumbo]( Activist investor Elliott Management said it had purchased nearly $2B of Southwest Airlines stock, sending shares up more than 7%. The firm said it wanted to modernize the discount flier and replace its CEO. - [Sunk]( The union representing 45K US dockworkers canceled labor talks over the use of autonomous machinery at some ports. The move ups the possibility of a strike ahead of the winter holidays (big for shipping). - [Survivor]( Uniswap Labs said it purchased “Crypto: The Game,” a reality-show-like competition built on Coinbase’s base blockchain. As crypto looks to expand beyond its bubble, gaming could draw more people to [DeFi]( - [Building]( Demand for new data centers and infrastructure projects funded by the $280B bipartisan CHIPS Act have contributed to one of the strongest labor markets for the construction industry since the early 2000s. Snack Fact Of the Day Just 1.3% of US white-collar workers were promoted in the first quarter [Read more]( Tuesday - Race Across America starts - Earnings expected from Oracle and Casey’s General Stores Authors of this Snacks own shares of: Amazon, Apple, Uber, and Walmart Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... 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