Apple’s Cautious AI Play | Raleigh News

Apple’s new CEO, John Ternus, inherits a company with record cash flow but under pressure from soaring memory costs and a slowing AI spending spree. While rivals like Amazon, Google, and Meta pour hundreds of billions into AI infrastructure, Apple slashed capital expenditures by nearly 30%, spending just $6.8 billion in the first nine months — a stark contrast to its $9.5 billion the prior year. Despite lagging in AI products like Siri and Vision Pro, and facing a legal battle with OpenAI, some argue Apple’s restraint is strategic, avoiding the AI model arms race as the real profits lie elsewhere. Yet, Tim Cook warns of “one hundred-year flood” pricing that’s forcing price hikes on Macs and iPads, squeezing margins even as iPhone revenue surges. Ternus’ first big challenge: balancing growth with cost control — a decision that could ripple through global investment portfolios.

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