Technology

Apple Faces Pressure to Deliver After AI Missteps

2025-06-08

Author: Rajesh

Apple's AI Challenges Loom Large

The stakes have never been higher for Apple as it prepares for its annual Worldwide Developers Conference (WWDC) on June 9. After a shaky start with its AI ambitions, the tech giant is under pressure to prove it hasn't lost its innovative edge, particularly as competitors rapidly adopt generative artificial intelligence (GenAI).

Last year, the company teased a suite of AI features, branded "Apple Intelligence," aimed at revolutionizing iPhones, including a much-needed upgrade to Siri. However, those promises fell flat, leaving analysts questioning Apple's ability to deliver.

Timing Is Everything for Apple’s AI Rollout

The highly anticipated Siri upgrade has been delayed, now expected to become available with the next iPhone release in the fall. Gadjo Sevilla, a senior analyst at eMarketer, remarked, "Apple advertised a lot of features as if they were ready to go, but they just didn’t materialize." With WWDC approaching, Sevilla believes the event will serve more as a platform for Apple to restore its credibility rather than a celebration.

What Will Be Highlighted at WWDC?

Industry insiders are eagerly awaiting whether Apple will address its AI setbacks or shift focus to other anticipated announcements, such as overhauls of its operating systems. Deepwater Asset Management noted, "Apple seemed to underestimate the AI shift, made grand promises, and is now racing to catch up." Rumors also swirl about potential new partnerships in the GenAI space, possibly involving Google or Perplexity, alongside an existing alliance with OpenAI.

Strained Relationships with Developers

Apple's challenges extend beyond AI. The company’s ongoing tensions with developers, who create apps for its platform, could also surface. The contentious 30% commission Apple takes on app sales has left many developers frustrated, especially in light of its failure to deliver on promised features. Sevilla described this situation as akin to a "double black eye" for Apple.

The aftermath of a lawsuit from Epic Games even mandated that Apple allow outside payment systems in its App Store, but many developers still seek more significant changes. Sevilla remarked, "Apple needs to extend an olive branch to its long-suffering developer community, which has struggled under Apple's restrictive controls."

Innovations and Competition on the Horizon

Adding to the competitive landscape is the involvement of Jony Ive, the legendary designer behind the iPhone, who has partnered with OpenAI on a potentially revolutionary AI device. This collaboration could put Apple on the defensive, with critics arguing that it highlights a gap between Apple’s offerings and what’s possible.

While primarily software-focused, WWDC might still showcase new hardware as a signal of Apple's ongoing innovation efforts. Apple also faces external challenges, such as potential tariffs from the Trump administration affecting its supply chain, particularly for the iPhones manufactured in China.

Brand Loyalty: Apple's Saving Grace?

Despite criticism, Apple's loyal fanbase could serve as a stabilizing factor as the company navigates these turbulent times. Analyst Carolina Milanesi notes, "Apple fans are known for their loyalty—even if it takes longer for the company to get its AI act together, they will remain committed."