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Apple is under increasing pressure to prove it can still innovate after falling behind on its promises to bring generative AI (GenAI) to its iPhones—while competitors forge ahead.
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At Monday’s Worldwide Developers Conference (WWDC) in Silicon Valley, the company is expected to unveil updates to its devices and software. The event follows last year’s announcement of “Apple Intelligence,” a suite of AI tools meant to enhance features like Siri—but which never fully materialized.
“Apple pitched a lot of new features that never launched,” said Emarketer analyst Gadjo Sevilla, noting the Siri upgrade is now delayed, possibly until the next iPhone release in the fall. He added that WWDC may serve more as an effort to regain trust than a celebration of breakthroughs.
Observers are keen to see whether Apple will directly address its lag in AI or pivot to less flashy updates—like major changes to its operating systems.
“Apple underestimated the AI revolution, made big promises, and is now scrambling to catch up,” said analysts Gene Munster and Brian Baker of Deepwater Asset Management.
There are also rumors that Apple may expand its AI collaborations, potentially partnering with Google or Perplexity alongside its existing alliance with OpenAI.
Developer Frustration Mounts
Beyond AI, Apple is also facing growing dissatisfaction from app developers, especially over its strict App Store rules and 30% commission fees.
“There’s long-standing tension between Apple and developers,” said Sevilla. “Apple’s broken promises and tight restrictions make it a double blow.”
Even after the Epic Games lawsuit forced Apple to allow external payment methods in the U.S. App Store, many developers still want broader changes.
According to analyst Carolina Milanesi, AI integration may finally force Apple to reconsider its closed ecosystem and allow developers more flexibility.
Competitive Pressures and Global Tensions
Adding to the stakes is the revelation that Jony Ive, the designer of the original iPhone, is now working with OpenAI on a potential AI-focused rival device.
“That puts Apple on the defensive,” Sevilla said. “Your top designer is now saying there’s something better than the iPhone.”
While WWDC is typically software-centric, Apple might introduce new hardware to showcase its continued innovation.
Meanwhile, looming trade issues—like potential tariffs from former President Donald Trump—pose further challenges, especially as China remains crucial to both iPhone sales and production. Calls to shift manufacturing to the U.S. are seen as unrealistic.
Still, Apple retains one major advantage: brand loyalty.
“People definitely want a smarter Siri,” Milanesi said. “But Apple users tend to stay loyal, even if the company takes time to catch up on AI.”
