Apple’s AI Strategy Could Help It Navigate Rising DRAM Costs and Drive New iPhone Upgrade Demand
Apple may be facing the same AI-driven memory shortage affecting the wider technology industry, but its position looks very different from companies spending tens of billions of dollars to build massive data centers. While hyperscalers are racing to expand AI infrastructure, Apple has kept its capital spending relatively low by using a more flexible, hybrid approach.
According to KIWOOM Securities analyst Seung-hyuk Kim, Apple’s capital expenditure for the first nine months fell 28 percent to $6.8 billion. That is a sharp contrast to the heavy spending seen across the AI infrastructure market. Instead of relying entirely on its own data centers, Apple is combining internal servers with external cloud partners, including Google, allowing the company to support AI features without taking on the same financial burden as cloud giants.
This leaner infrastructure strategy gives Apple an advantage during a period when AI demand is putting enormous pressure on DRAM and advanced chip supply. However, the company is not completely shielded from the problem. Rising memory costs and component constraints are beginning to affect Apple’s product plans.
Kim points to supply issues tied to A18 Pro chips as one example. The rumored MacBook Neo, which was expected to ship in large numbers, is reportedly facing a major production cut in 2026, with shipments potentially reduced by around 40 percent. Similar pressure could also affect future flagship iPhones, including the iPhone 18 Pro and iPhone 18 Pro Max.
The challenge is simple: even a company with Apple’s financial strength cannot easily overcome a tight supply chain when critical components are limited. Cash helps, but it does not instantly create more advanced chips or memory capacity.
To offset these pressures, Kim believes Apple needs a clearer AI roadmap, especially one centered on Siri and recurring services. The idea is that deeper Siri AI integration could encourage users to upgrade their hardware while also giving Apple more opportunities to grow subscription revenue.
Apple’s Services business remains one of its strongest divisions, but recent results showed signs of slowing momentum. The segment generated $30.74 billion in revenue, slightly below the $31 billion reported in the previous quarter. That ended a long streak of consistent growth, making future AI-powered services even more important.
A smarter, more capable Siri could become a key part of Apple’s next growth phase. If Apple bundles advanced AI features with iCloud+, it could offer users different subscription tiers based on the level of computing power or AI functionality they need. This would allow Apple to create fresh recurring revenue while strengthening the value of its ecosystem.
Such a move would also support hardware replacement cycles. If advanced Siri AI features work best on newer iPhones, iPads, and Macs, users may have more reason to upgrade sooner. This would be especially valuable at a time when rising memory prices could increase device costs and make consumers more selective about purchases.
The DRAM shortage is expected to continue until 2028, which means Apple will need to keep adjusting its strategy. The company has already started exploring new ways to keep customers upgrading despite higher prices. One example is a leasing program that allows users to save significantly when moving to an iPhone 17 Pro for a 12-month period. After the lease ends, customers can return the device and begin a new lease for a newer model, such as the iPhone 18 Pro.
This type of upgrade model could become increasingly important if premium smartphones become more expensive due to memory and chip shortages. By lowering the upfront cost of ownership, Apple can keep users inside its ecosystem while maintaining demand for its latest devices.
Apple’s biggest opportunity may now come from combining hardware, services, and AI into one tightly connected strategy. The company does not need to match the massive data center spending of AI infrastructure leaders, but it does need to prove that its AI features are useful enough to drive subscriptions and upgrades.
If Apple can turn Siri into a truly powerful AI assistant and package those capabilities effectively through iCloud+ and future devices, it could reduce the impact of rising DRAM costs while opening a new growth path across both hardware and services.
