Apple is facing pressure from Wall Street to figure out its AI strategy

Core Viewpoint - Apple is lagging behind its tech peers in artificial intelligence (AI) strategy, which raises concerns among investors and analysts about its future competitiveness and potential impact on iPhone sales [2][4][15]. Group 1: Company Performance - Apple's stock has declined over 15% in 2025, making it the second-worst performer among the Magnificent Seven tech companies [2]. - The company is expected to report $40 billion in iPhone sales for the fiscal third quarter, with its services division projected to grow by about 11% to $26.8 billion [5]. - Despite high user satisfaction and a strong customer base, Apple faces pressure to enhance its AI capabilities to maintain its market position [7][8]. Group 2: AI Strategy and Competition - Apple has not provided a clear AI strategy, leading to concerns about its competitive position, especially after the delay of the next generation of Siri until 2026 [3][4][9]. - OpenAI's acquisition of Jony Ive's startup and its plans for new hardware highlight Apple's uncertain role in the AI landscape [3][17]. - Analysts suggest that Apple is one to two years behind competitors like Google in AI development, which could affect its market share in the future [15][16]. Group 3: Consumer Behavior and Market Trends - A Consumer Intelligence Research Partners poll indicates that only 13% of new iPhone buyers did so for new features, including AI, suggesting limited demand for AI-driven upgrades [11]. - Analysts had initially expected that new AI features would drive a "super cycle" of iPhone sales, but this has not materialized as anticipated [9]. - The ongoing strength of iPhones, Macs, and Apple Watches may mitigate immediate pressure from AI competition, but the long-term outlook remains uncertain [8][12].