Rolfe Winkler

There was a desk and there was a filing cabinet behind it, right?

The desk space is analogous to memory on your phone.

It's all of the papers you need right now to complete whatever task you're working on, right?

Got it.

The DRAM or RAM is the memory.

It'll say 8 gigabytes or 12 gigabytes.

That's the size of the desk.

And it's what the phone needs to run the apps you're using right now.

The filing cabinet behind you is storage, right?

For everything else.

So when you buy an iPhone, if they're marketing 256 gigabytes to you, that's the filing cabinet, that's the storage, that's the photos in the video locker, right?

Desks are more expensive than filing cabinets.

And the cost of both of those quadrupled.

Google, Microsoft, Amazon, Meta, plus Nvidia, these guys are buying, you know, to torture our analogy, desks and filing cabinets, memory and storage.

They're buying huge amounts to go into those AI servers.

They put it in the AI servers so that the AI can work its magic.

Right now, there's three main makers of memory chips, two South Korean, one American.

Apple is the kind of company that in the past had so much leverage over these three players playing them off each other, it was leaving them next to no profit at all, right?

They were so powerful, they bought so much.

You know, now suddenly AI's in there, Apple has to wait in line.