Apple spends less on AI infrastructure than rivals
The Verge: Apple is all in on AI, its own and everyone else’s
Apple's latest earnings show how it's continuing to capitalize on the AI boom without busting its budget on the infrastructure spending consuming its competitors. Overall, Apple posted its best-ever fiscal year for revenue and earnings per share. iPhone and Mac sales continued to grow strongly in the fourth quarter. iPhone revenue rose 17.5% from a year earlier to a September quarter record of $57.6 billion while Mac revenue climbed 24% to $10.8 billion, its highest level in fo
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Apple is capitalizing on the AI boom while spending significantly less on infrastructure than its competitors. The company is positioning itself as an intermediary between consumers and AI technology, offering its own AI features while also integrating outside AI providers into its devices and services. Apple plans to generate revenue from AI through device upgrades, subscription fees for expanded AI access, and by selling hardware that enables customers to run AI locally without relying on cloud providers. Unlike competitors spending tens of billions on data center infrastructure, Apple's approach combines on-device processing, its own servers, and external AI technology, allowing it to pursue AI growth while maintaining lower capital expenditures.
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