Apple’s highly anticipated annual showcase on Monday appeared to underwhelm investors and analysts, as the tech giant failed to deliver the groundbreaking artificial intelligence advancements many had hoped for.
The presentation, led by CEO Tim Cook, focused primarily on minor software upgrades, doing little to alleviate growing concerns that the iPhone maker is lagging behind its rivals in the rapidly evolving AI landscape.
The market’s reaction was swift and telling.
Apple’s stock price dipped by as much as 1.9% during the keynote presentation, a move that wiped as much as $65.3 billion (£48 billion) off its market capitalization.
This sell-off underscores a growing frustration among investors regarding Apple’s perceived failure to keep pace with competitors on cutting-edge AI developments.
This sentiment was perhaps amplified by recent comments from Apple’s influential former chief designer, Sir Jony Ive.
Last month, while announcing his $6.5 billion (£4.8 billion) move to join AI rival OpenAI, Sir Jony seemingly criticized Apple.
He hit out at the “legacy” products on the market and the “decades old” technology within them.
The OpenAI deal is aimed at creating a new generation of devices that could potentially challenge the iPhone.
Incremental software tweaks, not AI leaps
During Monday night’s presentation, Apple placed significant emphasis on a range of visual improvements being introduced across its operating systems.
A notable update included enhanced functionality for iPads, which will now be able to operate more like traditional Mac computers, with applications capable of running in windows.
However, these updates were seen by some as insufficient to address the core concerns about Apple’s AI strategy.
In a note to investors, Daniel Ives, an analyst at Wedbush Securities, characterized the event as “overall a yawner”, adding that investors’ patience was “wearing thin”.
This follows years of reported setbacks for Apple as it strives to compete in the artificial intelligence arena.
While Apple was an early adopter of AI with its voice assistant Siri, rivals have since made rapid advancements, arguably overtaking its technology.
Indeed, last month, CEO Tim Cook acknowledged on an earnings call that “we need more time to complete our work on improved Siri features so they meet our high-quality bar.”
Yet, on Monday, Apple failed to announce any major AI updates for Siri.
Reports have suggested that progress on enhancing Siri with large language models has been hampered by technical complications.
Developer access and new call features: AI bright spots?
The most notable AI-related announcement from the annual showcase was that Apple would grant software developers access to the AI technology embedded in its recent devices.
Apple’s software chief, Craig Federighi, expressed optimism about this move:
We think this will ignite a whole new wave of intelligent experiences in the apps users rely on every day. We can’t wait to see what developers create.
Apple also introduced a live translation feature for phone calls, enabling users to, for example, speak in English to a French-speaking individual and have their words translated and read out in French in real-time.
Additionally, the company unveiled a call screening feature designed to function like a personal assistant, automatically answering calls from unknown numbers and requesting information so the user can decide whether to accept the call.
Despite these new features, the overall perception was one of missed opportunity in the AI domain.
Thomas Monteiro, an analyst at Investing.com, summarized this sentiment:
In a moment in which the market questions Apple’s ability to take any sort of lead in the AI space, the announced features felt incremental at best.
The event has left many wondering about Apple’s next significant move to reclaim a leadership position in artificial intelligence.
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