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Apple’s AI Struggles Persist as WWDC Fails to Deliver Major Breakthroughs

by Team Lumida
June 10, 2025
in AI
Reading Time: 5 mins read
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Why Apple’s AI Approach May Save Its Reputation
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Key Takeaways:

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  • Apple’s Worldwide Developers Conference (WWDC) focused on incremental updates, including a “liquid glass” design and a framework for developers to access its “foundation models,” but lacked significant AI advancements.
  • The much-anticipated AI-powered Siri overhaul remains delayed, with updates expected no earlier than late 2026, leaving Apple far behind competitors like Google and Microsoft in AI innovation.
  • Apple’s reliance on on-device AI, rather than cloud-based solutions, limits its ability to compete with peers who leverage global networks for AI distribution.
  • Analysts remain skeptical about Apple’s AI strategy, with concerns that the company’s device-centric business model may not capitalize on the broader AI revolution.

What Happened?

Apple’s WWDC keynote on Monday failed to meet already low expectations for its AI efforts, with no major surprises or breakthroughs announced. The company introduced a “Foundation Models framework” to help developers integrate AI into apps on Apple devices, but the updates were seen as incremental and lagging behind competitors.

The event primarily focused on design and software updates, including a new “liquid glass” aesthetic for its operating systems. However, the absence of a significant AI-powered Siri upgrade, which was initially hyped last year, disappointed investors. Apple’s software engineering head, Craig Federighi, stated that more details on Siri would be shared “in the coming year,” pushing its release timeline to late 2026.

Apple’s shares, already down 19% this year, slipped further after the event, reflecting investor concerns about the company’s ability to compete in the AI space.


Why It Matters?

Apple’s struggles with AI highlight the challenges of its device-centric business model in an era where cloud-based AI solutions dominate. Competitors like Microsoft, Google, and Amazon have integrated AI into their global networks, enabling rapid deployment and innovation. In contrast, Apple’s reliance on on-device AI has yet to prove a compelling selling point for its products.

The delay in AI-powered Siri and the lack of significant AI features in upcoming iPhones could hinder Apple’s ability to drive an AI-driven upgrade cycle, a key factor for maintaining its hardware revenue. Analysts have also noted that Apple’s limited investment in AI infrastructure, such as Nvidia chips, puts it at a disadvantage compared to peers.

While partnerships with AI leaders like OpenAI and Google’s Gemini could enhance Apple’s capabilities, the company’s slow progress raises questions about its ability to capitalize on what is widely regarded as the most transformative technological shift of the decade.


What’s Next?

Apple’s next major opportunity to showcase AI advancements will likely come in late 2026, when the delayed Siri overhaul is expected to launch. Until then, the company will need to rely on incremental updates and potential partnerships to stay relevant in the AI race.

Investors will closely monitor Apple’s ability to integrate AI into its devices in a way that drives consumer demand. The company’s success in leveraging AI as a selling point for its hardware will be critical for sustaining its growth and justifying its premium valuation.

Meanwhile, competitors like Google, Microsoft, and Meta will continue to push the boundaries of AI innovation, increasing pressure on Apple to deliver meaningful advancements.

Source
Tags: Apple
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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

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