YC

Y Combinator Cast

10/09/24

@ Y Combinator

Apple aims to leverage AI to extend the phone upgrade cycle by another decade, as long as the mobile battle continues.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

The competition between Facebook and Apple can be divided into three battles: the web era, the mobile era, and the emerging AI era.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

During the web era from 2000 to 2009, the browser served as a neutral platform, allowing app developers to thrive without needing to install desktop software.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

In the web era, Facebook emerged as the dominant application, overshadowing Apple's web products, which were not perceived as competitive at the time.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Facebook's platform allowed for the creation of billion-dollar businesses, with notable successes like Zynga and Spotify benefiting from it.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Apple won the mobile battle with the App Store, which became a crucial platform for app distribution, unlike the fragmented app ecosystems of earlier smartphones.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

The iPhone's initial launch lacked an app store, but it was later introduced to allow third-party developers to create apps, significantly enhancing the device's value.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Steve Jobs was initially reluctant to create an app store, but was convinced that opening the platform to developers would enhance the iPhone's capabilities.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

In the mobile era, Apple was ahead while Facebook struggled to keep up, often acquiring companies like Instagram and WhatsApp to strengthen its position.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

WhatsApp and Instagram, both small teams at the time of their acquisitions, leveraged Apple's platform to achieve significant growth and impact.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

The current trend shows a decline in the urgency to upgrade iPhones, as consumers feel less incentive compared to earlier years.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

The number one app in the App Store right now is ChatGPT, which reflects current consumer interests and trends.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

You don't need the latest phone to use ChatGPT effectively; it can run on older devices, indicating a shift in consumer needs.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Apple's recent updates, like changing the charging port, suggest that the mobile battle may be reaching its conclusion, with the App Store feeling mature.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

OpenAI, the company behind ChatGPT, is likely paying Apple significant amounts through subscriptions, which contrasts with Facebook's earlier practices of not sharing revenue with platforms.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Facebook is now investing in AI and open-source projects, learning from its past mistakes in the mobile era and aiming to own the AI platform.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Facebook is currently the most open company in advancing open-source AI, which is a significant shift in its strategy.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Apple seems to want AI to extend the mobile upgrade cycle, ensuring that the mobile battle continues to benefit them.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

Startups today face a much higher bar for consumer products, needing to be more compelling than platforms like TikTok and YouTube, which dominate user attention.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

The tools available for startups are improving, allowing for the creation of highly personalized experiences through AI, which contrasts with the more uniform experiences of the web era.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

AI tools are now good enough to create human-simulating applications, and platforms like SMS and email are becoming more open, presenting new opportunities for startups.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

The current landscape is filled with powerful players like Google, Microsoft, and Amazon, making it unclear who will dominate the AI space.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

At Y Combinator, we emphasize understanding the past to build effective strategies for the future, especially in this rapidly evolving AI landscape.

YC

Y Combinator Cast

10/09/24

@ Y Combinator

There are open platforms that the newest AI tools can exploit, suggesting potential opportunities for startups as larger companies struggle to regulate them.

Meta VS Apple: What Their Battle Means For AI Startups

Takeaways