Apple has been quite interesting lately. This company started by selling computers and has now transformed into an AI-driven cash cow.

There are three core advantages:

1️⃣ **Self-developed chips defeat the GPU arms race**
Competitors have spent hundreds of billions on Nvidia's GPUs, while Apple designs its own chips, resulting in ridiculously low AI costs. In 2025, they only spent 12 billion in CAPEX, while others spent hundreds of billions. This is the power of vertical integration.

2️⃣ **Service business is the real money**
The App Store, iCloud, and Apple Music, which have high gross margins and recurring revenue, may account for half of Apple's income in the future. The deeper the ecosystem, the stronger the user stickiness; the stronger the stickiness, the higher the gross margin—this creates a virtuous cycle.

3️⃣ **Too much cash to spend**
Holding 55 billion USD in cash and repurchasing 100 billion USD in stocks in 2025. Fewer circulating shares = Earnings per share growth = Stock price increase. This tactic was used for 10 years, with a total repurchase exceeding 700 billion.

🎯 The most crucial part is: Apple Intelligence (local AI) is coming. The iPhone has been sold for so many years, and this wave of AI upgrades may trigger a new wave of device replacements—plus, it will be cost-effective.

Data speaks: In the past 20 quarters, Apple has defied Wall Street expectations 19 times. Its relative strength is also good; while the market fluctuates, it remains stable.

This is no longer just the pure hardware company's model; it has transformed into a combination of hardware + services + AI.