AAPL On-Device AI: The Inference TAM Is Larger Than the Market Thinks

Apple Intelligence runs on A17 Pro and M-series chips — estimated 2.1B eligible devices. Even at 15% monetization via upgraded iCloud tiers and App Store AI features, the incremental revenue opportunity is $8-12B annually within 3 years. The Street is modeling AAPL AI purely as an iPhone upgrade cycle catalyst. The recurring services angle is undermodeled.