The AI Boom Is Coming for Apple's Profit Margins

The AI Boom Is Coming for Apple's Profit Margins

Apple's long-standing dominance over its electronics supply chain is eroding as AI companies outbid the iPhone maker for critical components like chips, memory and specialized glass fiber, giving suppliers the leverage to demand that Apple pay more. CEO Tim Cook acknowledged the pressure during a Th...

AI infrastructure surge begins squeezing Apple’s component costs — company considering supplier other than TSMC for lower-end chips, report claims

Apple is beginning to feel the downstream effects of the AI infrastructure boom, as surging demand for data center hardware pushes up component costs and weakens its leverage.

Apple, long dominant in the electronics supply chain, is starting to be outbid by AI companies for components like memory as suppliers gain leverage over Apple

AI Boom Erodes Apple’s Grip On Suppliers As Component Costs Surge – channelnews

For more than a decade, Apple has sat at the centre of the global electronics supply chain, dictating terms to manufacturers across Asia. That balance of power is now shifting as artificial-intelligence players pour extraordinary sums into hardware, outbidding Apple for key components and forcing suppliers to rethink their priorities. Companies racing to build AI infrastructure are spending heavily on advanced chips, memory and specialised mater…