Has Apple, the largest company globally, mishandled its generative artificial intelligence strategy?

Questions arose after one of the company’s most trusted monitors, technology analyst John Gruber, recently published a scathing review in a blog post entitled “Something Is Rotten in the State of Cupertino,” where Apple has its main offices.

The esteemed analyst and Apple fan expressed his frustration at having been too credulous when the company declared in June that its Siri chatbot would undergo significant improvements with new generative AI (genAI) capabilities.

The technology, set to be launched as part of the Apple Intelligence collection of iPhone software, aimed to elevate the functionalities of the oft-mocked voice assistant far beyond merely providing weather updates or configuring timers.

Investors were counting on this update to kickstart an eagerly awaited sales surge for iPhones. They envisioned a significant cycle where a compelling new feature entices customers to quickly purchase the newest and priciest version of the device they desire.

The anticipated enhancement of Apple Intelligence, particularly with the upgraded Siri, was expected to boost demand beginning with the launch of the iPhone 16 in September.

Rather than announcing it publicly, Apple discreetly revealed on March 7th that the deeply customized version of Siri had been delayed and wouldn’t arrive as soon as anticipated.

Increasing the stakes further, Amazon unveiled a new iteration of its Alexa voice assistant in February, which is driven by generative AI technology.

Apple stated, “This will require more time than initially expected to implement these features, and we expect their rollout to occur over the next year.”

Data privacy vs AI

Opinions differ regarding why Apple is struggling to capitalize on the AI opportunity.

According to Marcus Collins, a marketing professor at the University of Michigan, Apple’s difficulties with generative AI and Siri might stem more from their emphasis on data privacy rather than an inability to innovate.

To make AI personalized, it requires accessing large volumes of individual-specific information.

“And Apple hasn’t slowed down when it comes to privacy,” Collins told AFP.

However, at certain junctures, “individuals’ data, contributions, expressions… are all leveraged to foster superior AI development,” which could present more challenges than anticipated for Apple in finding a balanced approach.

According to tech analyst Avi Greengart, “Apple’s extensive advertising of Apple Intelligence alongside the iPhone 16 is somewhat disappointing since many features initially touted for Apple Intelligence do not appear in the iPhone 16.”

However, he warns that despite Google’s Gemini AI capabilities on their Android devices being more advanced than what Apple has offered so far, consumers might not have perceived significant differences.

He stated that even the most advanced AI implementations on smartphones today haven’t essentially altered how you use your phone.

Nobody has fully realized this vision yet, which buys Apple some time to close the gap—but they definitely need to do so.

Nevertheless, even Apple’s toughest critics argue that the company relies excessively on its past successes and the immense popularity of its iPhone.

Furthermore, the setbacks concerning artificial intelligence followed quickly after the disappointing response to Apple’s pricey virtual reality headset, Vision Pro, which has struggled to find an audience since its launch in 2024.

Even though Apple has faced unfavorable press recently and its stock value has dropped by 8 percent since the beginning of the year, it still holds the position as the globe’s most valued firm, with its shares being approximately 30 percent higher compared to last year at this time.

Apple announced an impressive $124.3 billion in revenue for the final quarterly period of the holidays, despite seeing slower sales growth than what analysts had anticipated.