Rising Component Costs for Apple

The boom in the artificial intelligence infrastructure market is beginning to impact component costs for Apple. Strong demand for data center hardware is driving up prices and weakening the negotiating position of the Cupertino-based company.

Possible Alternatives to TSMC

According to some reports, Apple is considering turning to suppliers other than TSMC for the production of lower-end chips in order to mitigate rising costs. This move could represent a significant shift in Apple's sourcing strategy, traditionally linked to TSMC for processor supply.

For those evaluating on-premise deployments, there are trade-offs that can be analyzed with AI-RADAR's frameworks on /llm-onpremise.