Apple is fucking up AI worse than they've screwed up any tech transition since maybe the Newton. Their "we'll take our time and do it right" approach worked great when they had years to perfect the iPhone. But AI moves too fast for Apple's perfectionist bullshit. With stock down around 20% this year — making them the worst performer in the Magnificent Seven — Apple's getting their ass kicked by delayed AI features, disappointing product launches, and lawsuits from competitors.
The WWDC 2025 Disappointment
Apple's Worldwide Developers Conference in June 2025 was intended to demonstrate the company's AI strategy and restore investor confidence. Instead, WWDC 2025 delivered a lackluster presentation that focused on operating system interface overhauls while only glancingly acknowledging the previous year's unfulfilled AI promises.
The market responded negatively, with Apple's stock closing down 1.2% on the day of the announcement. Investors had expected concrete demonstrations of Apple Intelligence capabilities and clear timelines for Siri improvements. Instead, they received what critics described as incremental updates that failed to address the fundamental question of Apple's AI competitiveness.
The presentation highlighted a crucial disconnect: while competitors like Google, Microsoft, and OpenAI have been rapidly deploying AI features that transform user experiences, Apple continued to emphasize design refinements and ecosystem integration over breakthrough AI functionality.
Siri: Still Dumb After All These Years
Siri was supposed to be smart 10 years ago. We're still waiting. In March 2025, Apple admitted Siri AI improvements would take "longer than we thought to deliver" - pushing "More Personal Siri" to spring 2026. At this rate, my grandmother's Alexa will have better AI.
This isn't just a delay, it's an admission that Apple fundamentally doesn't understand conversational AI. While Google Assistant and ChatGPT can actually reason through complex tasks, Siri is still stuck in 2011's "set a timer for 5 minutes" world. I've seen more intelligence from a toaster with a broken thermostat.
The delayed Siri upgrade was supposed to work across iPhone apps - basic functionality that Google Assistant has had for years. But Apple's perfectionist culture means they'll spend three years polishing a feature that should have shipped in 2019. Meanwhile, their "privacy-first" approach is just code for "we can't compete with companies that actually understand AI."
Legal Challenges from Elon Musk's xAI
Adding to Apple's challenges, Elon Musk's xAI filed a lawsuit against Apple and OpenAI, alleging anticompetitive practices that prevent competition in the AI industry. The lawsuit specifically targets Apple's App Store policies and its partnership agreements with OpenAI for AI integration.
Musk accused Apple of "rigging App Store rankings," claiming it constitutes an "unequivocal antitrust violation" that makes it impossible for AI companies other than OpenAI to reach #1 in the App Store. The lawsuit reflects broader industry tensions about Apple's control over iOS distribution and its selective partnerships with AI providers.
This legal challenge comes as Apple faces additional antitrust pressure from European regulators, who have fined the company for being out of compliance with the Digital Markets Act, and ongoing U.S. legal challenges over App Store commission structures.
The Competitive Reality Check
Apple services chief Eddy Cue's recent court testimony highlighted the existential nature of the company's AI challenge. Cue acknowledged that "You may not need an iPhone 10 years from now," describing AI as a "huge technological shift" that can upend incumbents like Apple.
This basically means Apple finally admits AI is as big as the shift from desktop to mobile. But here's the problem: when mobile happened, Apple created the iPhone and crushed everyone. With AI, they're getting their lunch eaten by Google, OpenAI, and even fucking Samsung.
Current Apple AI features largely mirror capabilities already offered by Google, OpenAI, and Samsung, with rivals moving further toward AI systems that can execute complex tasks rather than simply answering questions. The competitive gap is widening as Apple's methodical development process conflicts with the rapid iteration cycles that characterize successful AI development.
Financial and Market Impact
The financial impact of Apple's AI struggles extends beyond stock performance. Apple got fucking destroyed after WWDC 2025 - lost something like $75 billion in market value when they basically admitted Siri won't get smart until 2026. That's not just a bad day, that's investors realizing Apple might actually be screwed.
The company's AI features, rolled out in October 2024, were widely criticized as underwhelming. Tools for rewriting text, a new Siri animation, and slideshow movie generation failed to demonstrate compelling advantages over competitors' offerings, leading to questions about whether Apple Intelligence could drive meaningful user engagement and device upgrades.
The Privacy Excuse Is Getting Old
Apple's privacy commitment sounds noble until you realize it's become an excuse for mediocre AI. On-device processing and minimal data collection limit what their AI can actually learn and do. It's like trying to become a chef by only cooking with one ingredient.
Google and Meta built better AI by accepting that you need data to train good models. Apple chose philosophical purity over performance, and now their AI is years behind. "Privacy-first" is starting to sound like "we can't figure out how to compete with companies that actually ship working AI."
Apple's AI Reckoning Is Coming
Apple has to choose: ship competitive AI or keep making excuses about privacy. The market has already spoken - $75 billion in lost value when they admitted Siri improvements won't arrive until 2026. That's not "strategic patience," that's falling behind so badly that investors are jumping ship.
The company's traditional "we'll perfect it in secret then surprise everyone" approach doesn't work when your competitors ship AI updates every month. By the time Apple finally releases their "perfected" Siri in 2026, Google and OpenAI will be three generations ahead.
This isn't about temporary setbacks - it's existential. Apple's entire approach to product development assumes they have time to get things perfect. AI moves too fast for that luxury. Either they adapt their development process or they'll become the company that makes expensive phones with dumb assistants.
The next 18 months will determine whether Apple becomes an AI player or just another hardware company selling premium devices with mediocre software. Given their track record, I'm not optimistic.