Apple(US:AAPL) Youtubeยท2025-11-11 21:17Core Viewpoint - The discussion highlights Apple's relatively lower spending on AI compared to other tech giants, despite an increase in operating expenditures, particularly in research and development related to artificial intelligence. Group 1: Apple's Spending and Strategy - Apple has increased its operating expenditures by 11% year-over-year for the September quarter, with expectations to jump to 20% in the December quarter, primarily for AI initiatives [3][4]. - The company is building its own servers and utilizing its existing chips, which cost hundreds of dollars each, rather than spending significantly on NVIDIA chips [5][4]. - Apple's strategy appears to rely on partnerships, such as with Google's Gemini, rather than developing AI technology internally, raising concerns about its long-term AI strategy [7][10]. Group 2: Comparison with Other Tech Companies - Other tech companies, like Microsoft, are aggressively pursuing AI advancements and have more extensive investments in AI technology, which may position them better in the long run [8][12]. - Microsoft has recently freed itself from restrictions with OpenAI, allowing it to pursue more ambitious AI goals, contrasting with Apple's more cautious approach [8]. Group 3: Financial Position and R&D - Apple holds a strong financial position with approximately $200 billion in cash, allowing it to increase R&D spending without immediate financial strain [9][13]. - The company's margins are expanding due to the strength of its services business, enabling higher operating expenditures and R&D investments [13]. Group 4: Industry Concerns and Debt - There are concerns about the high levels of debt being taken on by tech companies in pursuit of AI technology, which could pose risks if these investments do not yield expected returns [15][16]. - The industry is experiencing extreme financial movements as companies chase advancements in AI, leading to questions about the sustainability of such spending [16][17].