Apple plays it safe on AI despite Wall Street pressure
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 on Monday 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.
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France 24
5 hours ago
- France 24
Apple plays it safe on AI despite Wall Street pressure
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 on Monday 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.
Euronews
11 hours ago
- Euronews
What we think we can expect at Apple's WWDC 2025
All eyes will be on Apple on Monday as its World Wide Developers Conference (WWDC) returns to its pristine stage in California, where the company is expected to unveil its latest technology and devices. It comes at a pivotal time for the company, which faces repercussions from the Trump administration's tariff proposal and competition from other tech companies to reign supreme in the battle for artificial intelligence (AI). These are some of the rumours of what could be announced. Last year, Apple announced the rollout of Apple Intelligence to its devices and the incorporation of ChatGPT into its Siri assistant. On Monday, we could see some upgrades to its current offerings, perhaps with Apple working with other AI chatbots. The recent announcement from Sam Altman that OpenAI is working with former Apple executive Jony Ive on an AI hardware device is no doubt putting pressure on Apple to catch up. Meanwhile, the race to incorporate AI more into smartphones is on. Samsung is reportedly partnering with AI start-up Perplexity to use its app and AI assistant in its Galaxy phones, according to Bloomberg. Motorola has also incorporated AI into its new Razr flip phone. However, AI could be used in Apple's Health app to provide personalised health suggestions based on user data, according to speculation. Another theory is that AI will be baked into some small OS updates, and could see new features for things like better battery management. 'While there is no clear leader in the AI race as it's still early days, arguably Apple's efforts are not resonating with customers,' tech analyst Paolo Pescatore told Euronews Next. 'This [AI] is a marathon and not a sprint, so there is time, but much more work needs to be done under the hood. Apple needs to tread carefully not to frustrate and disappoint its loyal base of iPhone users,' he added. According to Bloomberg, Apple is developing a dedicated app for video games that would exist separately from the App Store. It will replace the Game Centre app, and could allow access to Apple Arcade's subscription-based game store, plus other gaming features such as leaderboards. One of the biggest announcements will be the change in the naming systems for iOS, according to reports by Bloomberg. New iOS versions will be labelled by year, so we could see the launch of iOS 26 on Monday. Apple's iOS could also see a redesign, with reports speculating on a transparent interface. Apple could also introduce a live-translate language feature to its AirPods, according to Bloomberg. This would allow real-time translation during conversations. 'While all attention will be focused on Apple Intelligence, Siri, and other features, its relentless focus on ease of use and seamless interaction across all Apple devices should remain its top priority,' said Pescatore. Apple's large user base puts it in an enviable position, but the company must make some tough decisions on whether it continues relying on building in-house or partnering with other services, he added. But Pescatore said he did not think we would see the elephant in the room - the Trump administration tariffs - being mentioned. 'With the eagerly awaited new iPhone later in the year, and how [tariffs] will impact future sales. Users are not buying into smartphones due to AI; it is not a sought-after feature for now,' he said. But we will know more at the WWDC event, which goes live at 19:00 CET. You can watch the announcements as they unfold on Apple's YouTube channel. A new report published by a prominent American senator's office this week sheds light on how the first 130 days of US President Donald Trump's second term may have benefited Elon Musk, the world's richest man. Democratic senator Elizabeth Warren's office compiled a 14-page document using a combination of media reports, White House statements, and think tank research to identify over 100 occasions where Musk's companies and his own personal wealth benefited during his time with the unofficial Department of Government Efficiency (DOGE). A statement on Warren's website describes the report as a list of actions where Musk or White House officials "broke ethics norms and precedent or may have violated laws regarding federal employees' participation in matters in which they have a financial interest," while benefiting Musk's business concerns. The report alleges that these actions have increased Musk's personal wealth by "at least" $100 billion (€85.4 billion) and wiped out a potential additional $2.37 billion (€2.07 billion) in business liabilities from Musk's record. Warren's report comes in the wake of a very public fallout this week between Trump and Musk, who left his role at DOGE earlier this month. Warren's report claims that Musk had conflicts with "at least 70 per cent" of the government departments that his new role came after. The report claims that President Trump fired the USAID Inspector General, who was set to inspect Musk's satellite company Starlink for its role in providing services to Russia in its ongoing war against Ukraine. In one of the most controversial moves of his early presidency, the report claims that Trump then tried to shut down USAID in light of this pending investigation. Trump then announced a pause of US foreign development assistance programmes through USAID, creating a $60 billion (€55.3 billion) funding gap. Among the USAID cancellation repercussions is some non-profit funding to Ukraine that the EU told Euronews in February that it will not be able to meet the gap. Warren's report also claims that Starlink either struck deals or is negotiating deals with at least a dozen countries, largely in Asia and Africa, 'amid threats of tariffs'. Regulators "have taken no public action on their investigations" in more than 40 federal agency matters regarding Musk's companies "for several months or more," the report continued. Many of the stalled investigations highlighted in the report were focused on Tesla, Musk's electric vehicle company. Citing NPR reports, Warren said that Trump fired the Director of the Consumer Financial Protection Bureau (CFPB) in the first round of DOGE cuts after it received over 300 consumer complaints about Tesla. Pending investigations and audits from the Occupational Safety and Health Administration and Labor Department's Office of Federal Contract Compliance into Tesla were shut down by the Trump administration, the report continued. The Securities and Exchange Commission (SEC), in charge of investigating market manipulation, limited staff authority to launch investigations as the body was investigating Tesla's potentially false claims about self-driving vehicles. In a similar vein, the National Highway Traffic Safety Administration (NHTSA) laid off workers in DOGE cuts while it investigated Tesla crashes caused by the car's 'full self-driving' and remote control features. Trump's administration also administered cuts and slowed down the work of the Environmental Protection Agency (EPA), the Federal Aviation Authority (FAA) and Fish and Wildlife Services (FWS) after these agencies launched investigations into SpaceX, Tesla and xAI Musk's artificial intelligence (AI) company behind chatbot Grok, for environmental violations. During his time at DOGE, Musk was able to put in motion or sign several government contracts worth billions of dollars for SpaceX, his space technology company based in Texas. Trump's announcement of the Golden Dome project to guarantee security for the US, along with an initial $25 billion (€22 billion) investment, had already pegged SpaceX as a frontrunner for the project. The White House is now also reportedly calling for 13 per cent more spending for the Department of Defense, with SpaceX "considered likely to be the top recipient" of this funding, while the report alleges the company has already made over $7 billion (€6.15 billion) in contracts. The Federal Communications Commission (FCC) is expected to subsidise SpaceX's broadband services in a reversal of a previous decision to give the company $900 million (€790 million). Musk also helped handpick many of the administration's key personnel, including the initial selection of SpaceX investor Jared Isaacman as NASA's top administrator and putting Michael Guetlein, a former SpaceX fellow, at the head of the Golden Dome missile program. These picks also influenced a potential contract with the Pentagon where SpaceX would be paid to "transport military cargo around the globe". The report also alleges that DOGE infiltrated the Treasury Department's Federal Payment System, which could give Musk the financial information of competitor companies that have been awarded contracts.
France 24
2 days ago
- France 24
Apple under pressure to shine after AI stumble
Apple will showcase plans for its coveted devices and the software powering them at its annual Worldwide Developers Conference (WWDC) kicking off Monday in Silicon Valley. The event comes a year after the tech titan said a suite of AI features it dubbed "Apple Intelligence" was heading for iPhones, including an improvement of its much criticized Siri voice assistant. "Apple advertised a lot of features as if they were going to be available, and it just didn't happen," noted Emarketer senior analyst Gadjo Sevilla. Instead, Apple delayed the rollout of the Siri upgrade, with hopes that it will be available in time for the next iPhone release, expected in the fall. "I don't think there is going to be that much of a celebratory tone at WWDC," the analyst told AFP. "It could be more of a way for Apple to recover some credibility by showing where they're headed." Industry insiders will be watching to see whether Apple addresses the AI stumble or focuses on less splashy announcements, including a rumored overhaul of its operating systems for its line of devices. "The bottom line is Apple seemed to underestimate the AI shift, then over-promised features, and is now racing to catch up," Gene Munster and Brian Baker of Deepwater Asset Management wrote in a WWDC preview note. Rumors also include talk that Apple may add GenAI partnerships with Google or Perplexity to an OpenAI alliance announced a year ago. 'Double black eye' Infusing its lineup with AI is only one of Apple's challenges. Developers, who build apps and tools to run on the company's products, may be keen for Apple to loosen its tight control of access to iPhones. "There's still a lot of strife between Apple and developers," Sevilla said. "Taking 30 percent commissions from them and then failing to deliver on promises for new functionality—that's a double black eye." A lawsuit by Fortnite maker Epic Games ended with Apple being ordered to allow outside payment systems to be used at the US App Store, but developers may want more, according to the analyst. "Apple does need to give an olive branch to the developer community, which has been long-suffering," Sevilla said. "They can't seem to thrive within the restrictive guardrails that Apple has been putting up for decades now." As AI is incorporated into Apple software, the company may need to give developers more ability to sync apps to the platform, according to Creative Strategies analyst Carolina Milanesi. "Maybe with AI it's the first time that Apple needs to rethink the open versus closed ecosystem," Milanesi said. Apple on defensive Adding to the WWDC buildup is 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. "It puts Apple on the defensive because the key designer for your most popular product is saying there is something better than the iPhone," Sevilla said. While WWDC has typically been a software-focused event, Apple might unveil new hardware to show it is still innovating, the analyst speculated. And while unlikely to come up at WWDC, Apple has to deal with tariffs imposed by US President Donald Trump in his trade war with China, a key market for sales growth as well as the place where most iPhones are made. Trump has also threatened to hit Apple with tariffs if iPhone production wasn't moved to the US, which analysts say is impossible given the costs and capabilities. "The whole idea of having an American-made iPhone is a pipe dream; you'd have to rewrite the rules of global economics," said Sevilla. One of the things Apple has going for it is that its fans are known for their loyalty and likely to remain faithful regardless of how much time it takes the company to get its AI act together, Milanesi said. "Do people want a smarter Siri? Hell yeah," Milanesi said. "But if you are in Apple, you're in Apple and you'll continue to buy their stuff."
