<table><tr><th>From:</th><th>Richard Kahn</th></tr><tr><td>Sent:</td><td>Monday, June 5, 2017 11:51 PM</td></tr><tr><td>To:</td><td>Jeffrey Epstein</td></tr><tr><td>Subject:</td><td>Fwd: Apple, Inc.: WWDC Highlights Expansion into Al and AR</td></tr></table>

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>

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Wealth =anagement

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Apple, Inc.: WWDC =ighlights Expansion into AI and AR

## 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 iPhone, which will expand iPhone user =pend, improve customer stickiness and drive the 19% Y/Y services growth =equired to hit the

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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.

## June 5, =017 11:45 PM GMT (cont.)

## 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.

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