At a time when generative AI is sweeping the tech world, Apple is under unprecedented pressure and must now prove that it still has what it takes and has not been left behind. Although Apple has previously promised to introduce AI features in the iPhone in a big way, progress has been slow and competitors have accelerated to take the lead.
According to the Taipei Times, the annual Worldwide Developers Conference (WWDC) kicked off in Silicon Valley today, at which Apple will announce new trends in its flagship devices and core software systems. Last year, the company unveiled a high-profile AI feature set called "Apple Intelligence," including a major upgrade to the much-maligned Siri voice assistant. However, these features have been slow to be implemented, much to the disappointment of many observers.
Gadjo Sevilla, senior analyst at Emarketer, said: "Apple painted a rosy picture of many AI features at the time, but in the end it didn't materialize. The Siri upgrade has been delayed and is not expected to be officially launched until the new iPhone is released this fall.
"I don't think there's going to be much of an exhilarating celebration at WWDC this year," Sevilla added, "and it's more like an opportunity for Apple to try to rebuild its credibility."
The industry will be watching closely to see if Apple responds head-on to the lag in its AI strategy, or if it turns its attention to relatively low-key system-level improvements, such as rumored major updates to multiple operating systems.
Analysts Gene Munster and Brian Baker at Deepwater Asset Management noted: "Essentially, Apple underestimated the magnitude of AI change while overpromising features, and is now catching up at an accelerated pace.”
Rumor has it that Apple may announce a new GenAI partnership with companies such as Google or Perplexity, building on the existing OpenAI partnership.
Figure: Apple is under pressure due to the loss of AI and urgently needs to rebuild its image as a technology leader
For Apple, though, AI isn't the only challenge. Tensions with developers also need to be repaired. Developers want Apple to loosen its grip on the iPhone so that they can develop and deploy apps more freely.
"The tension between developers and Apple remains acute," Sevilla noted, "and it's a double whammy for Apple to take up to 30 percent commissions from them while failing to deliver on promises of innovative features."
Previously, a lawsuit launched by Epic Games, the developer of Fortnite, forced Apple to allow the US App Store to use an external payment system. However, the developer community is expecting more than that.
"Apple needs to extend an olive branch to the developer community, which has been constrained for a long time," Sevilla added, "and it's hard for them to really reach their potential under the constraints that Apple has set."
Carolina Milanesi, an analyst at Creative Strategies, believes that as AI becomes deeply embedded in the Apple ecosystem, Apple may have to rethink the trade-off between "closed" and "open". "This is perhaps the first time Apple has had to seriously consider the possibility of opening up its system," she said.
At the same time, while not publicly discussed at the WWDC, Apple still has to deal with a range of external pressures — notably the tariffs imposed on China during former President Donald Trump's presidency. China is not only an important growth market for Apple, but also a major production base for iPhones.
Mr. Trump has threatened to impose additional tariffs on Apple if it does not move its production lines back to the United States. But analysts generally agree that this requirement is almost impossible to achieve in reality.
"It's a fantasy to have iPhones made in the U.S.," Sevilla admits, "and that's going to completely upend the logic of the global economy."
Under the dual challenges of AI and the global market, it is worth waiting to see whether Apple can rebuild trust and regain its aura as a technology leader at this WWDC.
