Apple Dives into AI with a Different Playbook

Apple's approach to artificial intelligence (AI) stands out from its peers in the Magnificent Seven group of businesses. While companies like Nvidia, Tesla, and the hyperscalers are heavily investing in AI infrastructure, Apple is focusing on integrating AI features into its existing products and services.

The company's financials remain strong, with analysts projecting $141 billion in free cash flow this fiscal year. Apple's iPhone revenue reached $54.3 billion in Q3 2026, a 21.7% increase from the same period last year. The services division also saw a 12% top-line increase.

Apple is working with Alphabet's Gemini models to power its Siri refresh, set to launch later this year. This approach aligns with Apple's goal of bolstering its walled garden ecosystem and making it the primary gateway for accessing the digital world. Despite persistent supply issues, Apple's shares have surged 23% in 2026.