# Apple Slows Services Growth as AI Costs Rise

> Apple forecasts slower services growth amid rising AI costs, with Siri AI expanding access but adding expenses.
- Title: Apple Slows Services Growth as AI Costs Rise · Pymnts
- Summary: Apple forecasts slower services growth amid rising AI costs, with Siri AI expanding access but adding expenses. Apple expects 8-9% services growth in…
- Keywords: apple, siri ai, services growth, ai costs, memory shortages, december quarter, apple intelligence, business, finance, Slows, Services, Growth
- Source: Pymnts — https://pymnts.com/earnings/2026/apple-forecasts-slower-services-growth-as-ai-costs-rise
- Author: PYMNTS
- Published: 2026-11-03T02:09:51+00:00
- Read time: 1 min
- Topics: apple, siri ai, services growth, ai costs, memory shortages, december quarter, apple intelligence, business, finance
## Apple CEO's Services Forecast
Apple expects slower services growth during holiday quarter amid rising AI costs.

> There are going to be some usage limits on features that rely on server-side models, which include Siri AI and intelligent photo editing, some other things like that
## Siri AI Expansion Plans
Siri AI launched in U.S. English beta in September and expanded to French, Japanese, Korean, Portuguese and Spanish in October.
## Services Revenue Update
Services revenue increased 10% to $31.6 billion in September quarter with subscriptions exceeding 1.5 billion.
## December Services Forecast
Apple forecasts 8-9% services growth for December quarter due to third-party licensing and foreign exchange pressures.
## AI Cost Impact
Apple will record server inference expenses in services cost of sales and defer hardware revenue for Siri AI.
## Memory Shortages
Memory shortages will constrain Mac and iPad shipments during December as Apple raises prices on devices.
## Key takeaway

Apple expects 8-9% services growth in December after AI costs and memory shortages impact revenue.