Apple’s AI Strategy Under Scrutiny

A year after launching Apple Intelligence in response to the generative AI boom, Apple has faced challenges in gaining traction in the AI market dominated by competitors like OpenAI and Google. Although analysts highlighted Apple’s potential due to its considerable device ecosystem and custom silicon, the initial rollout of Apple Intelligence features was lackluster. Investor pressure is mounting on CEO Tim Cook to showcase advancements at the upcoming Worldwide Developers Conference. Notably, the delay of the anticipated “More Personal Siri” feature has fueled dissatisfaction, prompting class-action lawsuits. Apple has reportedly reorganized its AI teams and may need to acquire startups like Anthropic or Perplexity to bolster its capabilities. As established players ramp up AI investments, Apple’s strategy has included utilizing external computing power while integrating AI into its existing products. The rise of advanced AI systems poses a significant threat to Apple’s core business, prompting discussions on future computing paradigms beyond traditional smartphones.

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