Apple’s long -standing image as a technological technician is now faced with one of his most serious credibility tests for years. While generative artificial intelligence reshapes the future of computer science, the Cupertino giant is under pressure to make a determining movement – or may be left permanently.
Analysts say that Apple has failed to match the pace of its peers in the construction or acquisition of advanced AI capabilities. While competitors like Microsoft and Google have paid tens of billions in AI research, cloud infrastructure and historic acquisitions, Apple has remained tight lips, offering only incremental updates to Siri and vague promises thanks to its “Apple Intelligence” initiative.
“The incomplete AI strategy is still the biggest overhang, but we believe that Apple is still about 1.5 years old to perform a convincing solution,” TD Cowen analyst Krish Sankar wrote on Monday. He recommends buying the actions.
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This silence has upset investors. The actions of the company fell by more than 15% in 2025, which makes it the second worst interpreter among the “Magnifiment Seven”, heavy of technology, exceeded only by Tesla. Anxiety has caused Wall Street growing calls for Apple to make a daring game, starting with a strategic acquisition by Perplexity Ai, one of the fastest competitors to open the Openai Chatppt.
Perplexity, a startup known for its speed, precision and a radically simple user interface, has become a reader in small groups in the AI assistant space. Its ability to offer real -time responses supported by verifiable sources has attracted millions of users, some of whom have turned away from more established tools like Chatgpt, Gemini and Claude.
Dan Ives, Managing Director of Wedbush Securities and one of Apple’s most vocal supporters, believes that an acquisition of perplexity would be a transformative decision. He has repeatedly called Apple to make the jump.
“We believe that Apple must acquire the perplexity for AI capabilities,” said Ives earlier this month. “A likely range of $ 30 billion would be a case of non-event, given the AI approach on the treadmill in Cupertino. Perplexity would change the situation on the front of AI and the rival chatgpt given the scale and scope of the Apple ecosystem. ”
Ives doubled on Wednesday, just before the report on the quarterly Apple results, calling the management of the AI of the “invisible” company and warning that its current posture is not durable:
“In front of Apple’s income tomorrow, the elephant in the room continues to be the growth strategy of Apple’s AI, which is currently invisible, while the rest of the world of technology is laser focused on monetizing the largest technological theme in 40 years-the AI revolution,” he said.
“It clearly becomes clear that any innovation around AI Apple does not come from the interior of Apple Park’s walls. More importantly for the street, we believe that the Apple AI IA monetization strategy could be worth up to $ 75 per share – and time is checked for Cook to understand this. ”
Apple’s AI moves so far: too little, too late?
Earlier this year, Apple unveiled its “Apple Intelligence” framework, promising smarter Siri capacities, writing suggestions and integration with applications such as email and notes. But the reaction was lukewarm, and perhaps more damaging was the admission of Apple according to which the improved SIRI will not be fully ready before 2026.
This comes when the Alphabet Gemini assistant is already integrated into Android 16, offering users an experience fueled by AI with deep integrations on Google services – cards and Gmail in YouTube and on the calendar. Microsoft’s co -pilot and Meta -based Llama assistants also found houses through devices and applications, PCs with smart glasses.
Apple, on the other hand, remained stuck in its product cycle rate, focused on polishing the equipment while not being established a convincing AI strategy. Even his most notable movements in space, such as investing in AI startups and camera foundation models, have not yet given a largely adopted breakthrough.
The threat of the outside and inside
The urgency is not only to catch up with Big Tech. Apple’s former design head, Jony IVE, in partnership with OpenAI, is developing a brand new native consumption material product under a company called “IO”, acquired by the Sam Altman team for $ 6.5 billion. This decision is considered by many to be the clearest threat to the domination of the smartphone since its creation.
The rumor plans of Openai to disturb Apple from the outside add fuel to the anxiety of investors. There are speculations according to which Altman and Ive aim to build an Ai -First Aircraft that makes traditional smartphones – like the iPhone – without relevance.
Meanwhile, some voices inside Apple have already recognized that the clock was running. The main vice-president of Apple’s services, Eddy Cue, told a court earlier this year as a world without iphones in 10 years “was perhaps not as crazy as it could seem.”
Melissa Otto, analyst with Visible Alpha Research, notes that Apple’s additions to the iPhone last year did not trigger the planned “supercycle” of upgrades. Many users have only replaced older devices due to hardware problems, not new software features. According to data from Consumer Intelligence Research Partners, the majority of iPhone users in 2024 have purchased due to broken screens or battery problems, not excitement from AI.
All eyes are now turning to the appeal of Apple’s third quarter profits on Thursday, where the company is expected to publish more than $ 40 billion in iPhone revenues and around $ 26.8 billion in service income. But analysts say that financial performance will not be sufficient. Investors are looking for a story of the AI turned forward, a credible path which shows that Apple can direct, not only to follow.
Dan Ives and others believe that perplexity is the most obvious bet. Whether Tim Cook agrees – or continue to play long game – could determine if Apple remains a leader or becomes a follower in the next computer era.
