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Adam Levy, The Motley Fool
Mon, June 29, 2026 astatine 9:20 AM CDT 4 min read
Apple (NASDAQ: AAPL) finds itself successful a pugnacious position. It has avoided the dense spending associated with artificial quality (AI) compute build-outs. Nonetheless, the surging request for chips from immoderate of its "Magnificent Seven" peers has enactment unit connected its business. In particular, the terms of representation chips has soared implicit the past twelvemonth oregon so. Micron Technology conscionable reported that prices for its DRAM representation chips climbed much than 60% from the erstwhile quarter.
But 2 caller moves could assistance mitigate the near-term unit of higher representation prices connected Apple portion benefiting diligent semipermanent investors consenting to instrumentality with the starring smartphone maker.
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Apple is leaning into precocious representation prices
While representation spot prices are soaring, Apple's latest bundle updates are heavy reliant connected accrued representation capableness for its devices. Apple rebuilt Siri utilizing Alphabet's Gemini ample connection exemplary (LLM). The caller AI features demonstrated astatine its Worldwide Developers Conference (WWDC) lawsuit earlier this period are acold from cutting edge, but they instrumentality vantage of the idiosyncratic accusation and discourse of your iPhone, providing unsocial capabilities that starring AI companies can't replicate.
Under the hood, Apple is heavy focused connected keeping your backstage information private. That means moving arsenic galore queries arsenic imaginable connected the iPhone itself alternatively of sending the punctual to a distant server for processing. Apple took pains to trim the representation requirements for on-device AI, but there's lone truthful overmuch it tin bash portion providing the astir utile AI features. As a result, the upgraded Siri won't enactment with galore older iPhones.
It mightiness look counterintuitive to summation representation requirements for its premier bundle update astatine a clip erstwhile representation prices are truthful high. However, the timing could beryllium fortuitous for Apple. The caller Siri update could assistance thrust galore owners of older devices to upgrade this autumn with the adjacent iPhone release. And that gives Apple the accidental to rise the terms connected the iPhone.
Indeed, Apple conscionable announced terms increases for definite MacBook and iPad units. CEO Tim Cook suggested much terms hikes could beryllium coming successful a caller interview. Apple had held backmost connected terms hikes contempt accrued constituent costs for respective quarters, portion its biggest competitors, including Samsung Electronics, raised prices. That whitethorn person helped substance beardown iPhone income implicit the past fewer quarters, which are up 22% done the archetypal six months of fiscal 2026.
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