Back in June 2024, Apple CEO Tim Cook laid out some ambitious plans to weave artificial intelligence into both the software and hardware of the tech giant. Fast forward to now, and some folks are starting to question just how effective Apple’s AI strategy really is. Tech analyst John Gruber, who keeps a close eye on Apple, didn’t hold back in his blog post titled ‘Something Is Rotten in the State of Cupertino.’ He was pretty vocal about his disappointment with how Apple’s AI initiatives are unfolding.
Gruber’s main gripe centers around the much-anticipated upgrades to Apple’s Siri chatbot. These updates were supposed to be part of the new Apple Intelligence suite announced last year, promising to take Siri’s capabilities far beyond simple tasks like checking the weather or setting a timer. Investors were banking on these improvements to boost iPhone demand, especially with the iPhone 16 hitting the market.
But, as things stand, Apple announced on March 7 that the personalized Siri update is being pushed back. This delay comes hot on the heels of Amazon’s February launch of a new Alexa version powered by generative AI, which only ramps up the pressure on Apple.
Marcus Collins, a marketing professor from the University of Michigan, thinks Apple’s dedication to data privacy could be slowing down its AI progress. Personalizing AI involves a lot of personal data, but Apple is known for its strong stance on privacy. Collins pointed out that balancing privacy with AI innovation might be tougher than Apple thought.
Another tech analyst, Avi Greengart, noted that Apple’s heavy promotion of Apple Intelligence alongside the iPhone 16 has been a bit of a misstep. Many of the promised features haven’t seen the light of day yet. While Google’s Gemini AI features on Android devices are leading the pack, Greengart believes that the user experience impact isn’t massive just yet, giving Apple some breathing room to catch up.
Critics argue that Apple might be leaning too heavily on the iPhone’s popularity, missing the mark on innovation. This isn’t the first time Apple’s faced criticism; the lukewarm reception of Vision Pro, their pricey virtual reality headset launched in 2024, is still fresh in people’s minds.
Despite these hurdles, Apple continues to hold its title as the world’s most valuable company. However, its stock has taken an 8% dip this year. Still, with an annual revenue of $124.3 billion in the holiday quarter, Apple’s financial footing remains strong, albeit with slower sales growth than expected.
