ANALYSIS
Did WWDC heighten or calm Apple AI concerns?
Much of the chatter ahead of Apple’s annual WWDC conference centred around the company’s perceived struggles in keeping up with chief rivals in bringing cutting-edge AI technology to its devices.
The event marked a year since it unveiled Apple Intelligence, which was expected to catapult the company towards cutting-edge AI offerings. However, delays and underwhelming features ultimately curbed early enthusiasm.
Indeed, unlike the 2024 show, Bloomberg reported over the weekend the 2025 WWDC edition would not feature much in the way of major AI releases, further shining a light on the iPhone maker’s shortfalls which was tipped to further impact a share price that has already been hit heavily by US President Donald Trump’s trade policies.
This assessment was largely echoed by the Financial Times (FT), which also reported the company is struggling to deliver AI voice assistant upgrades for the iPhone, leading to major investor concerns over its overall strategy for the much-vaunted technology.
The article was further downbeat with recently departed employees apparently telling the FT Apple had been hit by challenges around building its own large language model (LLM) to upgrade the Siri voice assistant with the process of integrating the technologies not as seamless as it has been for competitors.
And with WWDC now in the books, much of the spotlight has so far centred on a Liquid Glass revamp which has been described as the most sweeping software redesign in its history, in addition to an operating software rebrand.
To that end, much of the pre-event talk ringed true. Apple was broadly quiet on AI, leaving the lingering question: where does Apple stand with its strategy?
Cautious and incremental
One of the few mentions of AI came in reference to Siri. SVP of software engineering Craig Federighi said the voice assistant had been updated to be more natural and helpful, but personalisation features were still on the horizon.
This work needs “more time to reach our high quality bar and we look forward to sharing more about it in the coming year”, he added.
For Ben Wood, chief analyst at CCS Insight, Apple Intelligence and AI more broadly was indeed the elephant in the room, and while Apple was keen to stress its strategy in AI is the correct one for the company, it is difficult not to compare its approach with rivals.
“The spectacular growth of OpenAI’s ChatGPT and Google’s relentless focus on Gemini, particularly on Android smartphones, is beginning to contrast sharply with Apple’s more cautious and incremental approach,” he said.
Tread carefully
Paolo Pescatore, founder and president of analyst house PP Foresight, argued that “there was plenty of Apple Intelligence under the hood”, pointing to subtle features announced such as screening of calls and text messages which will be widely held by users.
In reference to rivals, he added that while it might seem others are leading the AI race, “it is not a sought-after feature among users and there’s no revenue uplift for now”.
He does however acknowledge there is indeed a negative perception around Apple and AI, and the company “needs to tread carefully not to frustrate and disappoint its loyal base of iPhone users”.
Francisco Jeronimo, VP devices EMEA at IDC, described the company’s approach to Apple Intelligence as “measured”, with the focus less on disruptive new AI applications and more on incremental improvements and developer enablement.
Indeed, another AI related play that may go under the radar is a move to open access to Apple’s on-device and private cloud foundation models for developers, allowing third parties to build on Apple’s existing AI tools.
“This move narrows the gap with competitors like OpenAI, Google and Meta who have offered developer APIs for some time,” he said.
However, he echoed Wood in highlighting a “cautious” approach, particularly in the voice assistant arena, “where it currently lags competitors”.
“An emphasis on quality user experience over rapid iteration reflects a recognition that consumers are not yet uniformly engaged with AI, and premature releases could undermine both user satisfaction and industry credibility,” added Jeronimo.
Yawner
Anisha Bhatia, senior technology analyst at GlobalData, also noted that Apple Intelligence was peppered throughout the event, adding the “nonchalant manner of its announcements reflected Apple’s confidence in its ongoing development, despite recent discussions around AI advancements in the industry”.
So, on the whole industry analysts appear broadly positive about the event. Wood, Pescatore, Jeronimo and Bhatia have all pointed to AI-upgraded features under the Apple Intelligence moniker, but some suggest a cautious approach to the headline grabbing voice assistant plays could be a risky strategy.
And, it would be remiss not to note Apple did end the day after WWDC with shares 1.2 per cent lower, adding to a broader 20 per cent yearly drop, as its AI stance seemingly failed to impress the market.
UBS analysts noted the features that were unveiled were “in line with our more modest expectations”, while Dan Ives, an analyst at Wedbrush, told the FT the event had been a “yawner” and the company was playing it safe after mis-steps last year.
In terms of actual announcements, along with Liquid Glass, the event will perhaps be remembered for a move by the company to rebrand all its operating systems in line with the coming year – marking the year of OS 26.
For Jeronimo, next year will also hold true significance for where the company truly stands in the AI race.
“The true test will come in 2026, when the company is expected to refresh Siri and potentially introduce more radical AI-driven experiences. Until then, Apple remains focused on refinement: architecting unified platforms, aligning tools, and waiting for the optimal moment to act decisively.”