The hardware being cheaper only matters if they truly want to improve the product, which it's not clear that they do. Lowering the number of FLOPs needed will a

The hardware being cheaper only matters if they truly want to improve the product, which it's not clear that they do. Lowering the number of FLOPs needed will always reduce the cost, as the hardware gets cheaper the cost is just reduced faster. The question is, would improving Siri sell more IPhones? If not, then why bother?