Apple has been getting plenty of heat for looking “late” in the AI race, but one analyst thinks that slower, less expensive approach might actually be the company’s smartest move.
According to Wccftech, Evercore ISI analyst Amit Daryanani argues that Apple’s decision not to join the massive AI capital expenditure race could work in its favour. While other Magnificent Seven companies are throwing huge money into data centres, chips, and cloud AI infrastructure, Apple appears to be taking a more selective route.
The basic idea: Apple may not need to build everything itself if it can still deliver AI features through its ecosystem.
Apple’s AI weakness may become flexibility
Apple’s biggest criticism right now is obvious. Compared with Google, Microsoft, Meta, and OpenAI-backed platforms, Apple has not yet shown a giant, all-conquering in-house AI framework that feels ahead of everyone else.
But Daryanani’s view is that this may not be fatal. Instead of spending like a hyperscaler, Apple could rely on carefully chosen AI partners and plug those models into iOS, Siri, and its wider device experience.
That is important because AI models are becoming easier to swap around. If Apple uses a customised Google Gemini model in the cloud for a future chatbot-style Siri, for example, the situation is not totally different from Apple buying display panels from Samsung. The customer does not care who made the component if the iPhone experience feels smooth.
For Malaysian users, that is probably the real test. Nobody here is buying an iPhone because Apple owns every server rack behind Siri. People care whether the phone can understand local usage better, summarise messages properly, help with work, and not drain battery like crazy.
Evercore still sees strong Apple fundamentals
Daryanani reportedly pointed to several growth drivers for Apple, including premium iPhone demand, possible upside from an upcoming iPhone Ultra, market share opportunities in China through the iPhone 17 lineup, and a budget laptop push linked to a MacBook Neo.
He also sees meaningful room for Apple to monetise AI over time without matching the extreme spending levels of cloud giants.
Evercore ISI has raised its Apple price target to $365, with a bull case at $500, based on confidence in Apple’s ecosystem strength, premium product strategy, and long-term AI potential.
Of course, investors and fans still have valid concerns. Apple Intelligence has not exactly landed with the same impact as ChatGPT or Gemini, and questions around memory requirements and feature availability remain. In SEA markets, including Malaysia, that matters because users often hold on to older iPhones longer. If Apple’s best AI features need newer hardware, adoption may be slower here.
Why this matters for Malaysia and SEA
For SEA buyers, Apple’s AI strategy could affect pricing, upgrade cycles, and feature access. If Apple avoids burning billions on its own AI infrastructure, it may protect margins without needing to push device prices even higher than they already are.
That matters when Malaysian iPhone pricing is already premium territory. A Pro model can easily sit in “think twice before buying” range for students, young professionals, and creators. If Apple can deliver useful AI through partnerships instead of massive internal spending, the hope is that users still get smarter features without another painful price jump.
There is also a practical angle. SEA users are multilingual, switching between English, Malay, Mandarin, Tamil, slang, and local shorthand daily. If Apple can choose the best AI models for each task instead of being locked to one internal system, it could eventually improve localisation. That would be a big win, because global AI features often feel very US-first.
Still, Apple has to execute. “Smart spending” only looks smart if the end product is good. If Siri still feels behind, users will not care how efficient Apple’s capital strategy is.
For now, the argument is simple: Apple does not need to win the AI flexing contest. It needs to make AI useful inside the iPhone, Mac, and iPad experience. If it pulls that off while rivals spend billions chasing infrastructure dominance, then yeah — this supposedly cautious strategy might turn out to be very Apple after all.
Source: Wccftech Gaming