iPhone's Dominance at Risk: Will Competitor Smartphones Surpass Apple's Market Leadership?
C'mon Apple, Up Your AI Game Already!
Apple's latest WWDC left many unimpressed, especially with Siri's disappointing lack of an AI upgrade.
It's no secret that Apple is playing catch-up when it comes to AI. After entering the AI market later than competitors, Apple's software chief, Craig Federighi, announced that Siri won't be receiving the long-awaited AI makeover, further denting Apple's market value.
The WWDC was a bit of a dud. Critics pounced on the revamped Liquid Glass design, claiming it made some iPhone notifications hard to read. Even a few laughs were had on social media when YouTube play buttons covered the "Gl" in a thumbnail for an Apple Liquid Glass ad.
The real question people are asking is when will Siri finally get the much-needed AI upgrade? Unfortunately, Federighi delivered some bad news: It's still not happening. This news sent Apple's market value tumbling by about $75 billion. While the stock has since recovered somewhat, it's still trailing behind competitors this month.
Google, OpenAI, and other tech giants are steadily releasing powerful new AI models and products. Apple is running out of time to demonstrate it can be a force to reckon with in this crucial area. Even optimistic analyst Dan Ives is concerned, calling this year's WWDC "yawn-inducingly boring."
AI is complex, costly, and time-consuming. Apple was late to the game, building data centers, training data pipelines, and custom AI chips. In contrast, Google started laying the groundwork for its AI decades ago. Google's acquisition of DeepMind in 2014 continues to heavily influence Google's AI models today.
The AI Gap and iPhone Customers
Rumors abound that Apple may be facing an "intelligence gap" between the iPhone and other smartphones. Many Android phones already boast Google's chatbot Gemini, which is well ahead of Siri in terms of power. If Apple doesn't speed up its AI plans, this gap could widen to the point where iPhone users might start to switch.
At Google I/O last month, insiders whispered about this potential gap. They warned that it would take something significant for people to give up their iPhones. But if Apple doesn't sort out its AI situation soon, this gap will keep growing, and things could get seriously siri-ous.
So, when can we expect Apple to provide an AI upgrade for Siri? According to leaks, Apple is planning to roll out an AI-powered Siri update in the spring of 2026. However, this deadline has been pushed back several times, with the original goal set for the fall of 2024, followed by early 2025, then May 2025, and now spring 2026. The update aims to expand Siri's capabilities, integrating more closely with user data and on-screen content to handle more contextual and multi-step tasks.
In comparison, Google Assistant has been integrating AI capabilities for some time, offering features like contextual understanding and multi-step tasks. OpenAI may not be developing personal assistants like Siri or Google Assistant, but its models, such as ChatGPT, have set a high bar for conversational AI, which could influence consumer expectations for virtual assistants. Apple's delayed AI upgrade and engineering challenges have put the company behind in terms of timeline and perceived innovation compared to Google's consistent advancements and OpenAI's influence on AI benchmarks. Apple's focus on privacy and on-device processing aims to differentiate its approach by providing powerful, fast, and private AI experiences. However, the company needs to successfully execute its delayed AI upgrade to remain competitive in the rapidly evolving AI landscape.
- What's holding Apple back from competing with tech giants like Google and OpenAI in AI?
- With the delayed AI upgrade for Siri and competitors advancing, it might get seriously 'siri-ous' for iPhone customers if Apple doesn't speed up its AI plans.
