Apple is all in on AI — its own and everyone else’s

Apple’s latest earnings show how it’s continuing to capitalize on the AI boom without busting its budget on the infrastructure spending consuming its competitors. Overall, Apple posted its best-ever fiscal year for revenue and earnings per share. iPhone and Mac sales continued to grow strongly in the fourth quarter. iPhone revenue rose 17.5% from a year earlier to a September quarter record of $57.6 billion while Mac revenue climbed 24% to $10.8 billion, its highest level in four years.

Shares nevertheless fell in premarket trading Tuesday after Apple warned that rising memory costs would squeeze its profit margins in the holiday quarter. Apple hasn’t disclosed how much of its revenue growth reflects AI demand or higher prices, but its executives clearly see the technology as a way to drive further sales. During the earnings call, CFO Kevan Parekh cited a “wide range of ways that AI can contribute to revenue growth over time.” “On the product side, we feel AI offers a compelling reason for customers to upgrade and switch in order to get the latest capabilities,” he said. “And…