Apple plays it safe on AI despite Wall Street pressure
CUPERTINO: Apple on Monday (Tuesday local time) remained on its cautious path to embracing generative AI even as rivals race ahead with the technology and Wall Street expresses doubts over its strategy.
The pressure was on Apple not to disappoint at its annual Worldwide Developers Conference (WWDC) a year after the iPhone juggernaut made a promise it failed to keep – to improve its Siri voice assistant with generative AI.
The annual WWDC is addressed to developers who build apps and tools to run on the company's products.
Despite last year's disappointment, Apple insisted it was still very much in the AI race, announcing incremental updates to its Apple Intelligence software, including the ability for app makers to directly access a device's AI capabilities.
This would allow users to engage with apps using generative AI while offline, letting them interact ChatGPT-style with a hiking app, for example, while in remote areas without a connection.
Apple CEO Tim Cook briefly mentioned that Siri's AI makeover was still under development and "needed more time to meet our high quality bar," which includes Apple's standards on privacy and data security.
"We are making progress, and we look forward to getting these features into customers' hands," he added.
For Gadjo Sevilla, senior analyst for Emarketer, "the delays to Apple's in-house AI efforts will continue to draw scrutiny."
"Especially since rivals like Google and Samsung are moving ahead by introducing new on-device AI capabilities, or partnering with AI startups like Perplexity (in Samsung's case) to provide users with AI features," he added.
The biggest announcement at the event was the renaming of Apple's operating systems so that releases better match their release year.
The next operating system will be iOS 26 and will be available across all of Apple's devices -- including the Mac, Watch and Vision Pro headset -- in the fall, in time for the likely release of the next iPhone 17.
Today, Apple's operating systems have vastly different nomenclatures across devices, including the current iOS 18 for the iPhone or macOS 15 for Mac computers.
Apple also announced that the new operating system will be the first major iOS redesign since 2013, calling the new look "Liquid Glass."
Wall Street divided
The relationship between Apple and app-making developers has been strained in recent years, with developers chafing at the iPhone maker's high fees for getting access to the App Store.
A marathon lawsuit by Fortnite maker Epic Games ended with Apple being ordered to allow outside payment systems to be used in the US App Store.
Adding to doubts about Apple's direction is the fact that the legendary designer behind the iPhone, Jony Ive, has joined with ChatGPT maker OpenAI to create a potential rival device for engaging with AI.
Apple also has to deal with tariffs imposed by US President Donald Trump in his trade war with China, a key market for sales growth and the place where most iPhones are manufactured.
Trump has also threatened to hit Apple with tariffs if iPhone production wasn't moved to the US, a change which analysts say would be impossible given the costs and capabilities required.
Wall Street analysts remain divided on Apple's prospects, with the stock down about 17 percent since the start of the year, wiping over $600 billion from its market value and far outshone by its Big Tech rivals.
While some analysts remain optimistic about Apple's long-term AI monetization potential, others worry the company's cautious approach may prove costly in the longer term.
WWDC "was void of any major Apple Intelligence progress as Cupertino is playing it safe and close to the vest after the missteps last year," said Dan Ives of Wedbush Securities.
"We have a high level of confidence Apple can get this right, but they have a tight window to figure this out," he added. – AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
5 hours ago
- The Star
Fortnite developer claims win against Apple and Google
Both Apple and Google kicked Fortnite off their respective app platforms in 2020, after the game designed an in-app payments system that cut the tech giants out of the loop. — Photo by Joshua Hoehne on Unsplash SYDNEY: An Australian court has found Apple and Google misused their market power in a dispute with the maker of wildly popular video game Fortnite. Both Apple and Google kicked Fortnite off their respective app platforms in 2020, after the game designed an in-app payments system that cut the tech giants out of the loop. Developer Epic Games retaliated by launching legal action against the tech giants in a string of courtrooms around the world. Australia's Federal Court this week found the tech firms' app-store dominance reduced competition, likely forcing game developers to pay higher commission fees. "This is a WIN for developers and consumers in Australia!" Epic Games said in a statement Tuesday. Justice Jonathan Beach however rejected Epic Games' claims that Apple and Google engaged in unconscionable conduct. A Google spokesperson said the company disagreed with some of the court's findings and would "review the full decision when we receive it and assess our next steps". Australian lawyers have lodged a class action suit seeking compensation from Apple and Google on behalf of game users and developers. "The judgement is a turning point," said Kimi Nishimura from Maurice Blackburn Lawyers. "It sends a clear message that even the most powerful corporations must play by the rules and respect the rights of consumers and developers alike." Fortnite is one of the most popular video games in the world, laying claim to hundreds of millions of registered players. – AFP
Malay Mail
6 hours ago
- Malay Mail
Epic Games wins Aussie court fight against Apple and Google over Fortnite ban
SYDNEY, Aug 13 — An Australian court has found Apple and Google misused their market power in a dispute with the maker of wildly popular video game Fortnite. Both Apple and Google kicked Fortnite off their respective app platforms in 2020, after the game designed an in-app payments system that cut the tech giants out of the loop. Developer Epic Games retaliated by launching legal action against the tech giants in a string of courtrooms around the world. Australia's Federal Court this week found the tech firms' app-store dominance reduced competition, likely forcing game developers to pay higher commission fees. 'This is a WIN for developers and consumers in Australia!' Epic Games said in a statement Tuesday. Justice Jonathan Beach however rejected Epic Games' claims that Apple and Google engaged in unconscionable conduct. A Google spokesperson said the company disagreed with some of the court's findings and would 'review the full decision when we receive it and assess our next steps'. Australian lawyers have lodged a class action suit seeking compensation from Apple and Google on behalf of game users and developers. 'The judgement is a turning point,' said Kimi Nishimura from Maurice Blackburn Lawyers. 'It sends a clear message that even the most powerful corporations must play by the rules and respect the rights of consumers and developers alike.' Fortnite is one of the most popular video games in the world, laying claim to hundreds of millions of registered players. — AFP
The Star
10 hours ago
- The Star
Your next iPhone could come from this US mine. It also has billions in Pentagon contracts
A storied mine tucked in the California desert might be the ticket for the US to reducing its dependence on foreign adversaries. And it could be the birthplace of your next iPhone, too. At a time when the federal government is tightening its purse strings under the Trump administration, Pentagon agreements with one Las Vegas mining company are still firm. Rep. Susie Lee, D-Nev., joined Las Vegas-based MP Materials at its downtown Summerlin headquarters Monday to celebrate a slew of contracts with both Apple and the Department of Defense, representing billions in investment into the only operational rare earth mine and processing facility in North America. 'This is really changing the nature of technology and our supply chain in this country, and you all are leading the way,' Lee told a crowd of a few dozen employees. 'It's a very exciting day.' Rare earth is a set of 17 minerals that have an incredible range of uses, from smartphones to heat-resistant military gear. Even though MP Materials' Mountain Pass mine is alone in its production domestically, the minerals aren't that rare, with deposits found in Nebraska, Wyoming and Montana. And yet China has long dominated the market for the minerals. MP Materials had been shipping off its ore to China until April, when it onshored refining at Mountain Pass. That decision was, in part, due to Chinese tariffs on exports, the company said in a news release. DOD to become primary shareholder Today, the Mountain Pass mine that MP Materials bought eight years ago is producing more rare earth minerals than it has over its 75-year life, company spokesman Matt Sloustcher said. 'Prior to our acquisition of Mountain Pass, the site was on the brink of permanent failure,' Sloustcher said. In the last year, the Defense Department has committed to purchasing US$400mil (RM1.7bil) in company shares, established a floor for the price of certain elements and committed to a contract where it would buy all magnets created by a new facility in the first 10 years of production. One commitment – from Lee's negotiations on a defence appropriations bill – is a US$10mil (RM42.32mil) down payment for its chloro-alkali wastewater plant that supports the mine, once a polluter in the region, in upholding its status as a 'zero-discharge' operation. Tech giant Apple signed a US$500mil (RM2.12bil) contract with the company, as well, committing to sourcing some of its magnets from MP Materials' Texas recycling plant. The Pentagon contracts make the department MP Materials' largest shareholder, Sloustcher said. 'Securing America's industrial base is something leaders on both sides of the aisle agree on,' the spokesman said. 'It's one of the few issues we agree on, and that consensus is very meaningful for us.' How firm are the contracts? In response to a question about cost-cutting measures throughout the federal government, Lee said the Defense Department is largely 'isolated from those types of cuts.' 'Listen, we're in a ramp-up with China right now,' Lee said. 'The fact that we rely 100% on China for this type of rare earth element … we know how critical that is to our national defence. This is a priority.' The particular element Lee was referring to is samarium, which produces magnets hardy enough to brave temperatures hot enough to melt lead without being stripped of magnetic force. Those are necessary in motors, used in defence materials like missiles and fighter jets. Lockheed Martin, a major American defence and aerospace manufacturer, is the main consumer of samarium. Part of the Defense Department investment is a US$150mil (RM635mil) loan for samarium production, Sloustcher said. Aside from the international implications of the mine, MP Materials expects the investments to be a boost to Southern Nevada's economy, Lee said. 'Not only will we decrease our reliance on foreign nations, but we will also secure hundreds of jobs for Nevadans and produce magnets in an environmentally conscious manner,' Lee said. 'We must make America's rare earth resurgence a bipartisan priority.' – Las Vegas Review-Journal/Tribune News Service
