Apple is under mounting pressure to prove it hasn’t lost its magic, especially as rivals surge ahead in generative artificial intelligence (GenAI). Despite promising a bold AI transformation, Apple has failed to deliver on several key features—particularly upgrades to Siri, its long-criticized voice assistant.
At the heart of the scrutiny is the annual Apple Worldwide Developers Conference (WWDC), which kicks off Monday in Silicon Valley. This much-anticipated event will reveal the company’s vision for the future of its devices and software. However, the spotlight this year is less celebratory and more critical.
Last year, Apple teased a series of GenAI features under the umbrella term “Apple Intelligence.” These updates included a long-overdue overhaul of Siri and AI integration across various iPhone functions. But so far, those promises remain largely unfulfilled.
“Apple advertised a lot of features as if they were going to be available, and it just didn’t happen,” said Gadjo Sevilla, senior analyst at Emarketer.
Siri and Apple’s Race to Catch Up
The most anticipated of these delayed features was the revamp of Siri. While Apple hinted at significant improvements, the actual release has been postponed—now potentially slated for the next iPhone launch in the fall.
According to Sevilla, expectations at WWDC should be tempered. “I don’t think there is going to be that much of a celebratory tone at WWDC,” he noted. “It could be more of a way for Apple to recover some credibility by showing where they’re headed.”
Analysts Gene Munster and Brian Baker of Deepwater Asset Management echoed this sentiment. In a preview note, they wrote, “Apple seemed to underestimate the AI shift, then over-promised features, and is now racing to catch up.”
With OpenAI already in the fold, rumors are swirling about new partnerships with Google or Perplexity to accelerate Apple’s GenAI capabilities. These collaborations could signal that Apple is finally serious about competing in the rapidly advancing AI space.
Whether this strategy pays off remains to be seen. Apple has traditionally been cautious about incorporating third-party AI, preferring to maintain a tightly controlled ecosystem. But as AI innovation speeds up globally, even Apple may need to rethink its approach.
Developer Frustration Mounts as Apple Maintains Control
Apple’s GenAI stumble is only part of the problem. Developers—who create the apps and tools that fuel Apple’s device ecosystem—are growing increasingly frustrated. Apple’s 30% commission fees, combined with limited access to core device functionalities, are major points of contention.
“There’s still a lot of strife between Apple and developers,” said Sevilla. “Taking 30 percent commissions from them and then failing to deliver on promises for new functionality—that’s a double black eye.”
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Recent legal challenges, such as the lawsuit by Epic Games, forced Apple to allow external payment systems on the US App Store. But developers are pushing for even more freedom.
“Apple does need to give an olive branch to the developer community,” Sevilla emphasized. “They can’t seem to thrive within the restrictive guardrails that Apple has been putting up for decades now.”
As Apple integrates GenAI into its software, experts suggest the company may need to offer developers greater flexibility. Carolina Milanesi, an analyst at Creative Strategies, believes AI could finally push Apple to reconsider its traditionally closed ecosystem.
“Maybe with AI, it’s the first time that Apple needs to rethink the open versus closed ecosystem,” Milanesi said.
For Apple, known for its tight hardware-software integration, this would mark a significant cultural and strategic shift.
Apple on the Defensive as Competition Heats Up
Adding to the pressure is news that former Apple design chief Jony Ive has partnered with OpenAI to develop a potential iPhone alternative centered around AI.
“It puts Apple on the defensive because the key designer for your most popular product is saying there is something better than the iPhone,” Sevilla noted.
Although WWDC typically focuses on software, speculation is building that Apple may unveil new hardware to show it still has innovative muscle.
External Pressures: Trade Wars and Tariffs
Even beyond AI and product development, Apple faces geopolitical challenges. Tariffs imposed during former President Donald Trump’s trade war with China threaten Apple’s cost structure. Trump has also threatened further tariffs unless iPhone production is moved to the U.S.—an idea analysts consider economically unfeasible.
“The whole idea of having an American-made iPhone is a pipe dream,” said Sevilla. “You’d have to rewrite the rules of global economics.”
Despite delays and growing criticism, Apple retains one of the most loyal customer bases in tech. This loyalty gives the company some breathing room as it works to catch up in the AI race.
“Do people want a smarter Siri? Hell yeah,” Milanesi said. “But if you are in Apple, you’re in Apple and you’ll continue to buy their stuff.”
At WWDC, all eyes will be on Apple to prove that its best days aren’t behind it—and that the magic is still very much alive.
Source – EWN
