Analyst: Apple’s “conservative” AI strategy is an advantage, which can reduce capital pressure and drive hardware upgrades

IT House July 19 news, according to technology media Wccftech reported yesterday, BRI Wealth Management analyst Toni Meadows believes that the market’s view of Apple’s AI strategy has changed. Their relatively conservative strategy will not only reduce capital expenditure pressure, but also rely on their strong service business to open up new revenue sources, which is expected to drive more demand for hardware upgrades. IT House learned from the original report that the AI ​​craze has promoted the rapid development of many technology companies, while also bringing great uncertainty to the entire industry. In the stereotype, Apple does not seem to keep up with the pace of AI, and its generative AI has lacked significant progress for a long time. Only recently did the company launch AI Siri and fully upgrade Apple intelligence in hopes of making up for the shortcomings. Toni Meadows said the market’s view of Apple’s AI strategy has changed. In the past, the company has been viewed as a laggard for not investing heavily in developing advanced AI models. But now, Apple does not need to spend billions of dollars to maintain AI competitiveness like other hyper-scale cloud computing companies, so it is under significantly less pressure on capital expenditures. At the same time, Apple's "software and hardware integration" strategy can integrate its AI capabilities into various own services and further encourage users to upgrade their devices. The stickiness of its ecosystem and hardware products have the opportunity to commercialize AI, giving the market more sustainable confidence in Apple's profitability, rather than relying solely on hype about the AI ​​concept. Other analysts also believe that Apple has a large amount of personal data, and once AI Siri can have deeper access to this data, it will have the opportunity to create huge business value. However, considering Apple's privacy-first culture, it is expected that the company will not let Siri obtain more personal data in the short term. Therefore, Apple will still mainly rely on services and hardware businesses to drive performance growth in the future.