Analysts suggest that Apple's approach could enable it to integrate AI more cost-effectively, maintaining lower consumer prices and accelerating AI integration without significant capital expenditure. While Apple has been slower to release AI offerings compared to competitors, its lower AI infrastructure spending provides some protection from the challenges faced by US rivals. Despite heavy investments in AI by companies like Meta, Apple's overall spending on property, plant, and equipment increased modestly, indicating a more cautious approach to AI investment.
Key takeaways:
- China's DeepSeek has disrupted tech markets with its AI model R1, offering effective AI solutions at lower costs, impacting major US tech companies.
- Apple's stock rose despite the market disruption, as its AI strategy focuses on integration rather than developing cutting-edge models.
- Analysts suggest Apple could benefit from cheaper AI training costs, allowing it to integrate AI more efficiently and keep consumer costs down.
- Apple's lower AI spending compared to competitors may provide some protection from market volatility affecting other US tech giants.