EFTA02385961.pdf

From: Richard Kahn Sent: Monday, June 5, 2017 11:51 PM To: Jeffrey Epstein Subject: Fwd: Apple, Inc.: WWDC Highlights Expansion into Al and AR Richard Kahn HBRK Associates Inc. 575 =exington Avenue, 4th Floor New =ork, NY 10022 Begin forwarded message: From: =/b>"Morgan Stanley" <ms-wmir@morganstanley.com> Subject: =/b>Apple, Inc.: WW0C =ighlights Expansion into Al and AR Date: =/b>June 5, 2017 at 7:50:44 PM =DT To: =/b> Reply-To: =/b><mswmir-cie-feedback@morganstanley.com> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Wealth =anagement <http://www.morganstanley.com/img/cs/spacer.gif> Apple, Inc.: WWDC =ighlights Expansion into Al and AR <http://www.morganstanley.comh EFTA_R1_01405320 EFTA02385961 Katy L Huberty, CFA =E2 Morgan Stanley June 5, =017 11:45 PM GMT Apple's WWDC Keynote focused =n expanding and enhancing Al/ML and AR/VR capabilities which can become =iller apps across the Apple ecosystem, in our view. Key to HomePod =doption will be Al capabilities vs. peers. We remain bullish ahead of =he iPhone Supercycle in FY18. Machine learning and AR =ntegration key to OS updates. Apple announced updates to tvOS, watchOS =WatchOS 4), MacOS (High Sierra) and iOS (iOS 11) during the WWDC =eynote and the key to many of the software updates was increased AI/ML =ntegration and AR/VR functionality. For example, with WatchOS 4, Apple =ntroduced the Sid Watch Face, which Apple refers to as the =Intelligent Proactive Assistant" and features Al capabilities that =utomatically display data that is most relevant to the user. With MacOS =igh Sierra, Apple has integrated improved Al capabilities in the Photos =pp to improve facial recognition and selective color modification. And =astly, in iOS 11, Apple introduced a new Sin visual interface and =pdated SiriKit, which uses on-device learning to understand the context =or the apps you use and suggest future use cases or topics that might =e of interest to you, and then syncs these findings across all of your =pple devices. Ultimately, Apple wants to make these (and other) Al/ML =apabilities easy to incorporate into new apps, and therefore introduced =ore ML, which is a machine learning framework that app developers will =e able to use to enhance other Al/ML capabilities in iOS 11. On the AR =ront, Apple introduced and gave live demos of the new ARKit, a tool =hat will give app developers the capability to create new AR/VR-focused =pps in the future. Ultimately, we believe the heightened Al/ML and =R/VR focus of the new operating systems will help the 16M strong =eveloper community drive greater app development ahead of the =nticipated 10th anniversary i Phone, which will expand i Phone user =pend, improve customer stickiness and drive the 19% Y/Y services growth =equired to hit the This alert is sent from: Andrew Atlas, Andrew.Atlas@morganstanley.com You received this because you requested =hat you receive content and reports from: APPLE =NC. Please contact your FA if you want to unsubscribe from the =lerts. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Disclosures: Please see =he full report for risks, disclosures and other important =nformation. Important disclosures regarding the =elationship between the companies that are referenced in Morgan Stanley =esearch and Morgan Stanley Wealth Management research are available on =he Morgan Stanley Wealth Management disclosure website at https://www.morganstanley.com/online/researchdisclosures. Morgan Stanley Wealth Management Not Acting as Municipal =dvisor Morgan Stanley Wealth Management is not acting as a municipal =dvisor to any municipal entity or obligated person within the meaning =f Section 15B of the Securities Exchange Act (the "Municipal Advisor =ule") and the opinions or views contained herein are not intended to =e, and do not constitute, advice within the meaning of the Municipal =dvisor Rule. 2 EFTA_R1_01405321 EFTA02385962 Copyright The =opyright in materials provided by Morgan Stanley is owned by Morgan =tanley & Co. LIC. Morgan Stanley Wealth Management is the trade =ame of Morgan Stanley Smith Barney LLC, a registered broker•dealer in =he United States. © 2017 Morgan Stanley Smith Barney LLC. Member =IPC. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/imifjcs/spacer.gif> 3 EFTA_R1_01405322 EFTA02385963