Mumbai: Apple has chosen a strikingly different path from its Big Tech rivals as artificial intelligence becomes the centre of the technology industry’s next investment cycle. Instead of matching the enormous AI infrastructure spending of companies such as Microsoft, Alphabet, Amazon and Meta, Apple has unveiled its first foldable iPhone, priced at Rs 2,99,900 in India, while continuing to rely on a combination of on-device AI, private cloud computing and partnerships.
The strategy reflects a broader question facing the company under new CEO John Ternus: can Apple continue commanding a premium valuation by focusing on its hardware, software and services ecosystem while other technology giants spend hundreds of billions of dollars on AI infrastructure?
Apple’s foldable iPhone Duo starts at $1,999 globally and Rs 2,99,900 in India. The device arrives seven years after Samsung introduced its Galaxy Fold, but Apple is positioning the product as a major transformation of the iPhone rather than simply an attempt to catch up with competitors.
Apple takes a different route in the AI race
Artificial intelligence has become a major driver of investment across the technology sector. Nvidia, Microsoft, Alphabet, Amazon and Meta have committed enormous resources to computing infrastructure, data centres, chips and AI models.
Apple has taken a different approach.
Rather than building a direct rival to ChatGPT or Gemini at the same scale, the company has focused on smaller on-device models, private cloud computing and partnerships. In January 2026, Apple also entered into an agreement to use Google’s Gemini technology for its next-generation foundation models.
This allows Apple to participate in the AI ecosystem without necessarily replicating the infrastructure expenditure of its competitors.
The strategy is possible partly because of the company’s enormous installed base. Apple has around 2.5 billion active devices, giving it a massive distribution network for software and services.
The Rs 3 lakh foldable is Apple’s latest bet
The iPhone Duo represents Apple’s entry into a category that Samsung helped establish years ago.
The foldable device starts at Rs 2,99,900 in India and incorporates a precision hinge, dual batteries, a custom thermal system and Apple’s A20 Pro chip, according to the NDTV Profit report. Ternus described it as the most transformational change to the iPhone since the original model.
Apple’s late entry is consistent with a strategy it has followed across several product categories. The company did not invent smartphones, MP3 players, tablets, smartwatches or wireless earbuds. Instead, it often enters established categories after competitors have helped develop the market.
The advantage is that Apple can attempt to introduce a highly refined product once consumers are already familiar with the category.
However, this approach also carries a risk. Arriving late works only if Apple can deliver a product compelling enough to justify its premium pricing.
Apple’s services business provides financial strength
Apple’s financial structure gives it considerable flexibility in deciding where to spend.
In the June 2026 quarter, Apple generated $109.4 billion in revenue. The iPhone contributed $54.3 billion, Services generated $30.7 billion, Mac brought in $10.4 billion, iPad contributed $6.2 billion, and Wearables, Home and Accessories generated $7.9 billion.
Services have become particularly important because of their profitability. According to the report, Apple’s Services business had a 75.6% gross margin, compared with 40.1% for products. The company’s overall gross margin stood at 50.1%.
That recurring, high-margin revenue gives Apple greater freedom to invest selectively rather than responding to every technology spending race.
As of June 2026, Apple held approximately $146 billion in cash and securities, while its net property and equipment stood at around $51 billion. The company also generated more than $101 billion in net income over the first nine months of the period cited in the report.
Apple’s vertical strategy has limits
Apple’s competitive model is fundamentally different from Nvidia’s.
Nvidia sells chips and infrastructure to companies across the technology industry. Apple, by contrast, controls much more of the consumer experience, from its own silicon and operating systems to devices and services.
Its transition from Intel processors to Apple Silicon demonstrated the strength of that vertically integrated approach.
Apple is also extending this strategy into AI, including server chips developed with Broadcom and private cloud computing workloads using Nvidia GPUs inside Google Cloud.
But vertical integration does not eliminate Apple’s dependence on external technology.
Frontier AI requires enormous computing infrastructure. Apple has chosen not to reproduce the entire stack internally, meaning it relies on companies such as Google and Nvidia for parts of the intelligence powering its ecosystem.
Siri remains Apple’s biggest AI warning
Apple’s slower AI approach also carries an obvious risk: Siri.
The voice assistant debuted in 2011 but failed to advance at the same pace as Google’s Assistant, Amazon’s Alexa and newer generative AI systems such as ChatGPT and Gemini.
The company’s planned Siri overhaul was delayed, eventually contributing to Apple’s decision to partner with Google for foundation models.
That history raises a difficult question for Apple’s current strategy. Waiting can help a company avoid unnecessary spending and enter a market with a more polished product. But waiting too long can allow competitors to establish a technological lead that becomes difficult to overcome.
If AI agents eventually replace traditional apps as the primary way consumers interact with technology, Apple’s control over the smartphone interface could also face pressure.
Apple could benefit from owning the interface
Apple may not necessarily need to own every AI model to benefit from the AI revolution.
The company’s greatest asset could be its control over the interface through which consumers access digital services.
The report points to Google’s long-running payments to remain the default search engine on Safari as an example of this model. Google owns the search technology, but Apple controls the gateway through which many users access it.
A similar dynamic could develop with AI.
If companies such as OpenAI, Google and Anthropic build the leading AI models, Apple could still capture value if consumers access those services primarily through Apple devices.
In that scenario, owning the consumer interface could prove almost as valuable as owning the underlying intelligence.
The biggest question is whether Apple’s moat survives AI
Apple’s design, hardware, software integration and ecosystem remain central to its ability to command premium prices.
The Rs 2,99,900 starting price of the iPhone Duo is therefore more than a product price. It reflects Apple’s confidence that consumers will continue paying a premium for its integrated experience.
At the same time, Apple’s stock valuation creates pressure for the company to demonstrate that its competitive advantage remains durable.
Berkshire Hathaway, for example, reduced its Apple holding substantially from its late-2023 level, although Warren Buffett continued to describe Apple as an exceptional business. The development illustrates the difference between being a strong company and delivering the same investment returns seen during an earlier period of rapid growth.
Two possible outcomes for Apple
There are two competing interpretations of Apple’s strategy.
The optimistic view is that Apple is deliberately playing a longer game. The company can preserve its margins, develop on-device AI, use partnerships instead of spending excessively on infrastructure and enter new hardware categories when the technology is mature.
The pessimistic view is that Apple may have simply fallen behind in AI and is presenting that position as a deliberate strategy.
Both possibilities remain open.
Apple’s greatest advantage is that it does not need to win every technology race. Its biggest risk is that AI could become the technology that determines how all other races are conducted.
For now, Apple is betting that AI intelligence will become increasingly available and interchangeable, while trusted hardware and the consumer interface will remain scarce and valuable.
The Rs 3 lakh foldable iPhone is therefore more than a new product. It is a test of whether Apple’s decades-old strategy of entering markets late, refining the experience and charging a premium can still work in an era increasingly defined by artificial intelligence.