Apple recently hosted WWDC25, its annual Worldwide Developers Conference. As one of the most anticipated tech events each year, WWDC has long served as a key stage for Apple to unveil its latest technologies and innovations. In 2023, the company debuted the Vision Pro; in 2024, it made headlines with the introduction of Apple Intelligence, its AI system. A major question for WWDC25 is, can Apple truly redefine what we expect from AI?

It turns out that the outcome did not bring many surprises. As many in the industry had predicted, Apple’s AI-related announcements were not particularly groundbreaking. The long-awaited upgrade to Siri has yet to materialize. Craig Federighi, Apple’s senior vice president of software engineering, explained that more time is needed for the technology to meet the company’s standards. As for the new features introduced, they were relatively modest. While Apple did unveil tools like real-time translation and visual intelligence, such functions are already common in products from other tech companies. Moreover, Apple’s real-time translation currently supports only a limited number of languages, such as English, French, and German.

All in all, Apple’s shortcomings in AI development are closely tied to its overall AI strategy.

ANBOUND’s founder Kung Chan pointed out that AI is not just a mere concept but a complex strategic issue. If it is done right, all other things will fall into place; otherwise, all efforts will be in vain. As things stand, at this critical moment, Apple seems to have taken the wrong path. In 2024, Warren Buffett’s Berkshire Hathaway cut its Apple stake by 67% over the course of the year, and this certainly reflects the growing skepticism from the capital markets. Since the beginning of 2025, Apple’s stock has dropped more than 20%, making it the worst performer among the “Big Seven” tech giants.

A year ago, Apple announced the launch of Apple Intelligence as its response to the wave of complex chatbots and systems sparked by ChatGPT and the rise of generative AI. Analysts pointed out that Apple’s user base of over one billion iPhones, its wealth of on-device data, and its custom-designed silicon chips positioned the company to become a leader in the AI field. However, a year later, its performance in AI continues to face widespread skepticism. Apple Intelligence has fallen short of expectations, while OpenAI, Google, and Meta have continued to make significant progress with the release of new generative AI models.

Apple CEO Tim Cook has also acknowledged this reality. He understands that investors, fans, and developers all want to know how Apple’s AI strategy is evolving. Cook is well aware that in the age of AI, he must present the market with a clear path and vision, something the capital markets demand, and this is an issue that must be constantly addressed amid fierce competition. Ultimately, it is all about strategy. Last month, Eddy Cue, Apple’s senior vice president of Services, admitted that in ten years, users may no longer need an iPhone. AI is indeed a major technological shift with the potential to disrupt established companies like Apple.

The problem is that Apple has clearly fallen behind the pace of AI development and remains in a state of strategic ambiguity. The rollout of Apple Intelligence has been anything but smooth, with unclear progress and underwhelming features. In October 2024, Apple introduced the first wave of Apple Intelligence tools, including a text rewriting assistant, new Siri animations and voice enhancements, and a feature that creates slideshow movies using user photos; yet all these offerings failed to impress. By December 2024, Apple launched a key feature designed to summarize long text messages. However, the BBC reported that this tool distorted headlines and presented inaccurate information, leading to its disabling in news and media apps. More significantly, Apple suffered a major setback in March 2025 when it announced the delay of its promised "more personalized Siri", a supposed flagship upgrade originally slated for release in 2024. This new version was expected to integrate deeply with iPhone apps, enabling functions such as retrieving details from internal emails or booking restaurants. Apple had heavily promoted this feature in its marketing campaigns, framing it as a key reason to purchase the iPhone 16. Following the delay, the company postponed the launch to "next year" and quietly pulled related ads from television and YouTube.

Apple is also currently facing a series of lawsuits, with some users claiming they were misled into purchasing the new iPhone. The company has remained largely silent on these issues, but reports suggest that CEO Tim Cook, recognizing the seriousness of the situation, reacted with fury and ordered the removal of the AI team. Publicly, Apple stated only that parts of the AI team have been restructured. In reality, Apple’s missteps and sluggishness in the AI space have opened the door for competitors to gain ground in areas where the tech giant once seemed unshakable. In May of this year, OpenAI acquired io, an AI hardware startup founded by former Apple chief designer Jony Ive, in a deal worth approximately USD 6.4 billion. The company plans to launch its first AI “companion” device by the end of 2026, with a target of shipping 100 million units. This means that software-based AI companies have spotted an opportunity and are now entering the hardware space, aiming to build AI-driven smartphones or computers themselves.

At the heart of all these issues lies one fundamental challenge, namely the AI strategy.

As a matter of fact, ANBOUND has defined the concept of the AI computer long before Apple. It was among the first to clearly articulate how AI would impact consumer electronics, especially how advancements in natural language processing would influence hardware. According to ANBOUND, today’s computers are evolving into future AI terminals, with key companion devices expected to include headphones, wireless broadband interfaces, and various network platforms. Indeed, ANBOUND has repeatedly emphasized that the rise of AI could cause companies like Apple to lose their footing in this new era. Now, all of this is unfolding much faster than anyone anticipated.

In the future, companies like Lenovo may be reduced to mere hardware manufacturers, producing devices on an OEM basis, or even become subcontractors for systems developed by others. Although Apple still maintains an image of success, it remains heavily reliant on the legacy of the Steve Jobs era and lacks the sensitivity to adapt quickly. As a result, it too faces a similar risk. If Apple cannot carve out a distinct path in AI development, the outcome may already be sealed. Ultimately, this is a high-stakes gamble on technology and strategy. Everything hinges on the right path, a clear vision, and sound strategic direction. A misstep could lead to irreversible failure, ultimately being left behind by the times.

Final analysis conclusion:

AI is not merely a concept; it represents a complex strategic issue. When approached correctly, it can unlock transformative opportunities. Conversely, in the case that it is mishandled, even the most significant investments may prove futile. Apple’s missteps in AI development have led to increasing skepticism from the capital markets. Looking ahead, both Apple and Lenovo risk being reduced to commodity hardware manufacturers if they fail to establish a competitive edge in AI. The current situation for these tech giants has become a gamble where success depends on a clear path, a compelling vision, and the right strategy. In this era of rapid technological change, a single miscalculation could cause a company to fall into oblivion.

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Xia Ri is an Industry Researcher at ANBOUND, an independent think tank.