What WWDC tells us about the future of Apple and the iPhone
The more serious question hanging over this year's WWDC was not answered. When will Siri get the AI upgrade it desperately needs? Software chief Craig Federighi delivered the bad news: It's still not ready. That knocked roughly $75 billion off Apple's market value. The stock recovered a bit, but it's still badly lagging behind rivals this month.
Google, OpenAI, and other tech companies are launching powerful new AI models and products at a breakneck pace. Apple is running out of time to prove it's a real player in this important field. Analyst Dan Ives is usually bullish, but even he's concerned. "They have a tight window to figure this out," Ives wrote, after calling this year's WWDC a "yawner."
AI is complex, expensive, and takes a long time to get right. Apple was late to start building the needed foundational technology, such as data centers, training data pipelines, and homegrown AI chips. By contrast, Google began laying its AI groundwork decades ago. It bought DeepMind in 2014, and this AI lab shapes Google's models in profound ways today.
When I was at Google I/O last month, one or two insiders whispered a phrase. They cautiously described an "intelligence gap" that could open up between the iPhone and other smartphones. Many Android phones already feature Google's Gemini chatbot, which is far more capable than Siri. If Apple's AI upgrade takes too long, this intelligence gap could widen so much that some iPhone users might consider switching.
At I/O, these insiders only whispered this idea. That's because it will take something pretty dramatic to get people to give up their iPhones. This device has become a utility that we can't live without — even for the few days (weeks?) it might take to get used to an Android replacement.
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