My bet is that apple with eat early adopter's lunch.

Well GenAI is so big, those early winners will be crying all the way to the bank, but apple will be fine.

Look at Apple Maps. It was a travesty, so they just promoted google maps on their device so they did not loose market share, then year after year slowly caught up to google maps. Now most users use apple maps on an iphone.

Same thing here, they can lag OpenAI etc. for many years, and eventually catch up with the basic tech, and keep their position since they own the device.

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And I think your age is showing (I am 58 and certainly older than you) but still the youngest generation just does not care about privacy in the same way. They were born into a non-private world. I think as long as apple retains "in practice" privacy, then it will all be ok.

e. g. as long as no one can every reverse engineer person info out of a trained model, or a data breach does not happen, and marketers don't get their fingers on the data, the all is good.

Face it, right now you personal data flows thru transistors that are connected to wifi transmitters that could broadcast that data if there were a hack at apple to change your firmware. We are already very very exposed.