Apple (Aapl) Artificial intelligence efforts are in difficulty. The company, which made its debut Apple intelligence platform During his conference of WWDC developers last year, he was put on the software to help stimulate sales of his iPhone and other products. But so far, the gambit has fallen flat, iPhone sales decreasing from one year to the next during its last quarter.
And now, the technology giant says that it delays the release of a more intelligent version of Siri, one of the most anticipated aspects of its AI strategy. According to Apple, the new Siri takes more time than the expected company and is expected to be released later this year.
In addition to that, Apple is still working to operate Apple Intelligence in China, one of its most important markets. AI is a major sales argument for smartphones buyers in the region, According to the CANALYS market research companyAnd local players like Honor and Xiaomi quickly fulfill the void.
Apple announced its iPhone 16 with Apple Intelligence despite the fact that the software is incomplete. (Images Vuk Valcic / Sopa / Lightrocket via Getty Images) ·Sopa images via Getty Images
Apple’s action, on the other hand, continues to be hammered with the rest of its Big Tech cohort. Shares are down 11% over a year, joining Nvidia (Nvda), which is in case of 17%, and Microsoft (Msft) and Amazon (Amzn), who both fell 9%.
On Wednesday, Morgan Stanley analyst Erik Woodring lowered his price for Apple from $ 275 to $ 252 to fear that Siri delays affect the iPhone upgrade cycles throughout 2025 and 2026. According to Woodring, around 50% of iPhone owners who did not go to the iPhone 16, Apple intelligence delays.
“It shocks the system a little so that Apple has a period of about a year,” said Gene Munster, Managing Director of Deepwater Asset Management, in Yahoo Finance.
“And I think it simply talks about everything that happened below the surface. Above the surface, the message is that Apple Intelligence is … will be great. And below the surface there, they have a lot of work to do,” he added.
If Apple wants to turn around his AI plans, he will have to do so soon that late or risk taking his rivals more in the United States and abroad.
Apple Intelligence was supposed to be one of the main reasons why consumers are upgraded to the iPhone 16 and iPhone 16 Pro. But the company launched its software platform until October of last year, much more than a month after publishing its latest range of smartphones.
In addition, despite showing a number of Apple’s intelligence capacities during WWDC 2024, the company said it would slowly deploy the service features throughout 2024 and 2025.
And although the company has published capacities such as writing tools, notification summaries and photo retouching tools, it is not the type of functionalities that will allow customers to align themselves en masse for new iPhones.
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“It has been a debacle since (Apple) published Apple Intelligence,” said Zeus Kerravala, founder and principal analyst of ZK Research. “If you think about it, even from the initial launch, it was really not very clear what Apple Intelligence was.”
This does not help that Apple initially announced Apple Intelligence with an ad that features actor Bella Ramsey using a full version of the software even if a certain number of functions were still not available.
“I really think they reacted to the IA media threw,” said Kerravala. “They weren’t really ready to understand how they were going to use it. And they came out with something that was half cooked, which, I think, shows in many ways the pressure that Apple is under.”
Meanwhile, Apple Samsung’s competitors (005930.K) and Google (Goog,, Googl), which both use the Gemini AI platform of Google, continue to add more AI functionalities to their devices, including agental functionalities similar to those promised within the framework of Siri rethought.
The fact that the sloppy launch of Apple Intelligence takes place after the company vision of the company has failed to gain ground among consumers, the appearance that Apple cannot quite innovate as it could.
However, while Apple’s AI A era left, the company has a lot of track to save steam in AI wars. Other Apple Past products landed with a thud to take off later with consumers later, including the Apple Watch and the AirPods.
“I think they will understand,” said Munster. “I think it’s the darkest before dawn. They have an incredibly faithful base that trusts them.”
But he could still take time to Apple not only to launch its AI features, but also do them correctly.
“I do not think there are short -term corrections here,” said Patrick Moorhead, founder of Moor Insights & Strategy, Patrick Moorhead. “Even in 2026, I will be surprised if all the capacities are there.”
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Send an email to Daniel Howley to dhowley@yahofinance.com. Follow him on Twitter at @Danielhowley.
