A year after unveiling its bold AI strategy, Apple finds itself in an unexpected place — not at the forefront, but falling behind. As rivals accelerate, Apple stands at a crossroads.
The stage was Silicon Valley. The moment, historic. In June 2024, Apple announced “Apple Intelligence” with grand ambition. Within hours, its market value soared by $200 billion.
The euphoria of the ambition was merely temporary.
Twelve months on, the promises sound hollow. Siri’s AI makeover has been shelved. Apple Intelligence struggles to keep up with Google’s Gemini or OpenAI’s bots. And amid Donald Trump’s renewed trade war, Apple’s reliance on China is again under scrutiny.
Even worse, two key revenue pillars, search and the App Store, now face legal and regulatory threats.
Behind the scenes, tension grows. Critics see echoes of General Electric, a giant that once dazzled Wall Street but missed the future. Some ask: is Apple becoming the next Nokia?
According to The Economist’s report, Donald Trump’s policies have exposed Apple’s deep vulnerabilities in China, a market once seen as its strongest pillar.
Apple’s core problem isn’t money. It’s momentum. While rivals race to reinvent devices with AI-powered glasses and assistants, Apple is playing it safe, leaning on slow upgrades and a foldable phone expected next year.
Its Vision Pro headset may yet become a gateway to smart glasses. But for now, it remains a costly experiment.
At the heart of the issue is privacy, once Apple’s proud shield. But in the AI age, that shield now limits growth. Refusing to collect personal data means weaker AI models. Prioritising on-device computing keeps Apple out of the cloud arms race.
Even its rare opt-in deal with ChatGPT hints at a deeper problem: Siri can’t compete. Not without help.
Some urge Apple to break the walls of its tightly controlled ecosystem. Others say it’s too late. Firms like OpenAI, Anthropic and Google are already tied up in billion-dollar alliances. And China, where Apple’s roots run deepest, is no longer a stable bet.
Now, courts threaten the search deal with Google, worth $20 billion annually. The App Store faces challenges too. If regulators or lawsuits succeed, Apple could lose over $30 billion in high-margin revenue.
That would be a shock. And markets hate shocks.
But there is another way to read this moment.
If Apple uses the crisis to rewrite its rulebook — on privacy, AI partnerships, and device design, it might yet lead the next tech revolution. If not, it risks becoming a story of caution in a century built on boldness.
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