Apple is about to answer a burning question about its future
By
Lisa Eadicicco
, CNN
Photo:
AFP / Ying Tang
Apple is about to reveal what's next for its most important products at its annual Worldwide Developer's Conference on Monday (local time). This year, the stakes are significantly higher than usual.
Apple announced its long-awaited push into artificial intelligence at last year's event by introducing Apple Intelligence, a suite of AI-powered features for the iPhone and other products. But delays and underwhelming capabilities have put Apple on its back foot. The company has struggled to convince consumers and Wall Street that it's a leader in the crucial technology, which is expected to overhaul the way people work, communicate and find information online.
Now, one year after introducing Apple Intelligence, the company is on the hook to prove at this week's Worldwide Developer Conference (WWDC), a key annual event for the company, that it can make a name for itself in the AI space as its chief rivals like Google continue to charge ahead.
At this year's WWDC, which kicks off Monday with a keynote address from Apple chief executive Tim Cook and other executives at 10am PT, don't expect Apple to show off a flashy new iPhone or Apple Watch. Instead, the company will outline new capabilities for its current devices that lay the foundation for where it could be going next.
"WWDC, from a developer conference perspective, is maybe more interesting than others," said Carolina Milanesi, president and principal analyst at technology analysis firm Creative Strategies. "It does give consumers a peek as to what they can expect coming to whatever device that they already own."
How much or how little those software updates incorporate Apple Intelligence could be telling. Apple did not immediately respond to CNN's request for comment regarding its WWDC plans and AI strategy.
Apple's AI struggles are larger than just a product delay. The bigger issue is that Apple's current AI tools don't offer experiences that are notably different from what you can get elsewhere. Apple Intelligence can summarize text messages, identify real-world surroundings with the iPhone's camera, erase unwanted objects from photos, rewrite emails and prioritize notifications. But those features are similar to capabilities offered by other companies such as Google, OpenAI and Samsung.
In fact, rivals like Google and OpenAI are already moving one step further with technology they claim can execute tasks for consumers rather than just answering questions or generating summaries.
There are benefits to waiting; Apple has largely been able to avoid the embarrassing AI gaffes of its rivals, with one exception. Apple is also known for popularizing new technologies rather than being first, as was the case with smartwatches and tablets, two categories it now dominates.
But Apple has yet to prove it can do the same with AI. And it doesn't sound like that's going to change at WWDC, according to Bloomberg's Mark Gurman, who wrote the event "may be a letdown from an AI standpoint," citing "people within the company".
However, the report did say Apple may open its models to developers so that non-Apple apps can incorporate text summarization and its other AI-powered features. The company may also announce an AI-powered battery management tool, according to Bloomberg.
But Dan Ives, global head of technology research for Wedbush Securities and an Apple bull, isn't concerned about whether Apple makes significant AI announcements on Monday. He thinks Apple has a big opportunity to monetize Apple Intelligence moving forward despite its slow rollout, he wrote in a June 6 report.
Google, whose Android operating system is the only major rival to Apple's iOS, has been barreling ahead with new AI tools and services. Its annual I/O developers conference was entirely focused on AI, with the company showing how the tech will be incorporated into everything from its ubiquitous search engine to its popular Chrome browser and Gmail.
At that event, Google also announced an upgraded version of its AI-generated video engine that made headlines and raised alarm for its ability to create startingly realistic clips.
"I think it's becoming clearer how far behind they (Apple) are in AI," Deepwater Asset Management managing partner Gene Munster told CNN in March.
Samsung is also said to be partnering with AI startup Perplexity to package its app and digital assistant into its Galaxy phones, according to Bloomberg. This comes after Motorola incorporated AI technology from several companies, including Perplexity, on its new Razr flip phone - further underscoring that the technology could play a bigger role in smartphones.
That presents a major opportunity for Apple; it's the world's second-largest phone maker by market share and also the only mobile device company to completely control both the hardware and software of its products. That crucial benefit has long been an advantage for Apple, giving it more freedom to develop exclusive features tailored for its products on its own timeline rather than coordinating with partners. Wedbush Securities estimates that "25 percent of the world's population will eventually access AI through an Apple device over the next few years," Ives wrote.
But Apple has yet to execute on that potential with AI, and the clock is ticking.
"We need more time to complete our work on these features so they meet our high quality bar," Apple chief executive Tim Cook said in reference to the more personal version of Siri on the company's May earnings call. "We are making progress, and we look forward to getting these features into customers hands."
There's a growing belief in the tech industry that some new type of device could one day supplant, or at least partially replace, the smartphone. And those devices, unsurprisingly, will largely run on AI.
Eddy Cue, the longtime Apple executive that leads the company's services division, even acknowledged this, saying during his testimony in Google's search antitrust trial that "you may not need an iPhone 10 years from now," Bloomberg reported. Veteran former Apple designer Jony Ive and OpenAI chief executive Sam Altman are also partnering to develop a new AI hardware product, the pair announced last month.
Companies like Google, Samsung and Meta are also investing in smart glasses with built-in digital assistants that can identify objects in a person's environment as a potential successor to the smartphone.
That doesn't mean iPhones will become obsolete anytime soon, nor does it mean consumers will switch to Android or avoid upgrading because of a lack of new AI features.
But in the near term, AI could give Apple another means to encourage iPhone upgrades if executed properly. Apple Intelligence is only supported on newer models, specifically the iPhone 15 Pro and later, meaning customers with older phones must upgrade to use it. Apple touted the iPhone 16 as being "built for Apple Intelligence" when announcing the device in September.
Cook said during Apple's most recent earnings call that year-over-year iPhone 16 performance was stronger in countries where Apple Intelligence was available than those where it was not available, perhaps an indication that its AI efforts are somewhat helping sales.
The fact that people carry their iPhones - along with their AirPods and Apple Watch - everywhere they go could give Apple's Siri a leg up compared to rivals like Amazon's Alexa.
That is, if Apple does it right.
"The fact that Siri knows me so much more, just because my main driver, from a phone perspective, is an iPhone will make that interaction even more valuable than what Alexa does," said Milanesi. "(Alexa) sees me in my home context, but doesn't necessarily come with me in the outside world. So that is the potential right now."
-
CNN
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

RNZ News
5 hours ago
- RNZ News
US-China trade talks to resume for a second day
By Kate Holton and Alistair Smout , Reuters Photo: AFP Top US and Chinese officials will resume trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls for goods such as rare earths that have threatened a global supply chain shock and slower economic growth. Investors are hoping that the two superpowers can improve ties after the relief sparked by a preliminary trade deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports that are critical to sectors including autos, aerospace, semiconductors and defence. The talks come at a crucial time for both economies, with customs data showing that China's exports to the US plunged 34.5 percent in May, the sharpest drop since February 2020, when the outbreak of the Covid-19 pandemic upended global trade. While the impact on US inflation and the jobs market has so far been muted, the dollar remains under pressure from US policymaking. The two sides met at the ornate Lancaster House in the British capital on Monday to discuss disagreements around the Geneva deal, and are due to resume talks early on Tuesday before both sides are expected to issue updates. The US side is led by US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, while the Chinese contingent is helmed by Vice Premier He Lifeng. The inclusion of Lutnick, whose agency oversees export controls for the US, is one indication of how central rare earths have become. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors. Lutnick did not attend the Geneva talks at which the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. Trump's often erratic policymaking on tariffs has roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. The second round of meetings between the two sides comes four days after Trump and Xi spoke by phone, their first direct interaction since Trump's 20 January inauguration. Following the call Trump said Xi had agreed to resume shipments to the US of rare earths minerals and magnets, and Reuters reported that China has granted temporary export licenses to rare-earth suppliers of the top three US automakers. But tensions remain high over the export controls, after factories around the world started to fret that they would not have enough of the materials they need to keep operating. - Reuters


Techday NZ
6 hours ago
- Techday NZ
Apple unveils macOS Tahoe 26 with new design & AI features
Apple has previewed macOS Tahoe 26, the next major update to its desktop operating system, bringing a new design, enhanced Continuity features, significant Spotlight updates, and expanded Apple Intelligence capabilities. Design updates The new design introduces the Liquid Glass material, offering translucent effects that reflect and refract the surroundings. Key elements such as the Dock, sidebars, and toolbars have been refined to focus on user content, and the menu bar is now completely transparent to maximise display space. Customisation options have been expanded, allowing users to arrange controls in the menu bar and Control Centre, and apply different colours or emojis to folders and app icons. New light and dark appearances for app icons, as well as updated wallpapers and theme colours, are also included. Continuity improvements macOS Tahoe introduces the Phone app to the Mac via Continuity, allowing users to relay cellular calls from their iPhone, access Recents, Favourites, and Voicemails, and use features such as Call Screening and Hold Assist. Call Screening answers calls from unknown numbers and gathers information for the user, while Hold Assist enables users to keep their place in a queue and continue working. Live Activities from iPhone are now integrated into the Mac menu bar, displaying real-time events such as flights, rides, or sports scores. Clicking a Live Activity opens iPhone Mirroring for further details and interaction. Spotlight enhancements Spotlight receives an update with the ability to execute hundreds of actions, such as sending emails or creating notes, directly from the search interface. Search results are grouped and prioritised by relevance, with new filtering and browsing options for faster content discovery, and improved support for documents in third-party cloud drives. Spotlight now supports actions from both Apple and third-party apps via the App Intents API. Users can also run shortcuts and perform personalised actions based on routines, as well as use quick keys for rapid commands. Apple Intelligence features Apple Intelligence expands with features focused on productivity, communication, and creativity. Live Translation provides text and audio translation in real time across Messages, FaceTime, and phone calls, using on-device models to maintain privacy. Shortcuts can now leverage Apple Intelligence models for tasks such as text summarisation and automatic image creation. Shortcuts can run at designated times or upon specific actions. Users may also access ChatGPT for broader world knowledge within shortcuts. Genmoji and Image Playground receive updates allowing users to customise emoji attributes and apply various artistic styles, including those powered by ChatGPT. Reminders can now be automatically categorised and action items identified through Apple Intelligence. Gaming and developer tools The release introduces the Apple Games app, centralising games, recommendations, and social features. Game Overlay provides fast access to system settings and social actions during gameplay. The new Metal 4 framework offers advanced graphics and rendering technologies for developers. Upcoming games for Mac include titles such as Crimson Desert, InZOI, Cyberpunk 2077, and several others, utilising features like MetalFX Upscaling and support for Apple's M3 and M4 chips with ray tracing. Additional features Other updates in macOS Tahoe include refreshed Safari design and faster performance, new features in Messages such as Backgrounds, Polls, and improved group chat navigation, as well as the launch of the Journal app for Mac. Photos receives a design update with personalisation improvements, FaceTime introduces a redesigned landing page and floating controls, and Notes gains markdown compatibility and support for audio transcription from Phone app calls. Accessibility developments include Magnifier support, Accessibility Reader, enhanced Braille Access, and Vehicle Motion Cues to help reduce motion sickness. The Passwords app tracks changes and version history for users' credentials. "macOS is the heart and soul of the Mac, and with Tahoe, we're building on what users love most. Whether you're a power user or just getting started on Mac, there's something for everyone, with even more features to turbocharge productivity and make working across Mac and iPhone more seamlessly than ever before," said Craig Federighi, Apple's Senior Vice President of Software Engineering. "With its gorgeous new design, amazing Continuity experiences, powerful enhancements to Spotlight, more intelligent shortcuts, and updates to Apple Intelligence, the Mac experience is better than ever."


Techday NZ
6 hours ago
- Techday NZ
Apple unveils watchOS 26 with new design & smart features
Apple has previewed watchOS 26, highlighting a new design and enhanced features intended to offer a more personalised user experience for Apple Watch owners. Among the most notable updates is the introduction of a redesigned interface featuring Liquid Glass, which Apple says aims to make navigation and controls more expressive while maintaining the watch's familiar usability. Features benefiting from this design include the Smart Stack, Control Centre, the Photos watch face, and in-app navigation elements. Another key addition is Workout Buddy, which utilises Apple Intelligence to deliver personalised, spoken motivation during exercise sessions. By analysing users' workout data and fitness history privately and securely, Workout Buddy provides real-time motivational insights through a generative voice influenced by Fitness+ trainer recordings. The new experience also includes music recommendations aligned with individual preferences and workout types. "Apple Watch is an indispensable companion for millions of people around the world, and watchOS 26 uses intelligence to offer an even more personalised experience," said David Clark, Apple's Senior Director of watchOS Engineering. "From a gorgeous new design, to Workout Buddy with Apple Intelligence, personalised music suggestions in the Workout app, and more intelligence in the Smart Stack and Messages, we're excited about the many ways watchOS 26 will support each user in staying active, healthy, connected, and safe throughout their day." Workout Buddy offers features such as kilometre split updates, personal milestone announcements, and post-workout summaries with statistics and encouragement. An example message might include: "Way to get out for your run this Wednesday morning. You're 18 minutes away from closing your Exercise ring. So far this week, you've run 6 kilometres. You're going to add to that today." The system also delivers milestone notifications, such as "Your total running distance for the year just crossed the 200-kilometre mark! That's a lot of running!" Upon completing a workout, users receive a recap: "Way to get your workout in! You went 6.9 kilometres in just over 38 minutes. Your average pace was 5 minutes and 34 seconds, and your average heart rate was 128. That was your longest run of the last 28 days. What will you do next?" Workout Buddy requires an Apple Intelligence-supported iPhone nearby and will initially be available in English for selected workout types, including running, walking, cycling, HIIT, and strength training, when using Apple Watch with Bluetooth headphones. Redesigned fitness app The Workout app itself has received its most significant update since its launch, introducing a new layout and navigation. Four new corner buttons aim to simplify access to custom workout features such as Workout Views, Custom Workout, Pacer, and Race Route. Users can now configure music and podcasts to play automatically when a workout is started, with Apple Music selecting playlists based on workout type and taste, or suggesting recent favourites. Smarter Smart Stack The Smart Stack now incorporates improved prediction algorithms and contextual data, delivering proactive 'hints' that appear as visual prompts on the display. Examples include suggesting Backtrack functionality in remote areas or prompting a Pilates workout when users arrive at a familiar location and time. Updates to Messages Live Translation is now available in Messages for supported Apple Watch models when paired with a compatible iPhone, translating both incoming and outgoing texts in real time into the user's preferred language. English language users will see more relevant action suggestions within Messages; for example, initiating a 'Check In' when asked about arrival time or using Apple Cash when prompted to contribute to group gifts. Customisable conversation backgrounds and the ability to respond to polls directly from the watch are also included. Smart Replies are enhanced with improved language models for more precise responses. New gestures and notifications watchOS 26 introduces a wrist flick gesture allowing users to dismiss notifications, calls, timers, alarms, or return to the watch face with a single hand. The gesture complements the existing double tap function and is intended for situations when the other hand is occupied. The system leverages the watch's sensors and machine learning to detect the movement. Additionally, Apple Watch now adjusts speaker volume automatically based on ambient noise for notifications, timers, calls, and Siri. Additional updates The Notes app comes to Apple Watch, enabling access to, creation of, and management of notes directly on the wrist. New features in the Phone app, such as Hold Assist and Call Screening, require a nearby iPhone and support selected languages. Live Listen controls for users who are deaf or hard of hearing now include live captions of iPhone audio on the watch and remote management of Live Listen sessions. The Photos watch face now shuffles images based on featured content, displaying personal moments on the wrist. The watch face gallery has been redesigned for easier exploration, offering grouped collections. Developer tools Developers have access to new APIs supporting the updated design and features in watchOS 26, including the ability to add custom controls to the Control Centre and Smart Stack, and introduce third-party widgets with new relevance signals such as Points of Interest. watchOS 26 will be available as a free software update for Apple Watch Series 6 or later, the second-generation Apple Watch SE, and all Apple Watch Ultra models when paired with iPhone 11 or higher. Apple Intelligence features require compatible devices and selected languages.