Apple punted on AI this year. Next year will be critical

Core Viewpoint - Apple Inc. is set to launch a new generation of its AI voice assistant, Siri, which is crucial for the company to remain competitive in the AI landscape dominated by competitors like Google and OpenAI [2][3][4]. Group 1: Siri's Development and Market Context - The launch of the upgraded Siri has been delayed from 2025 to "the coming year," increasing pressure on Apple to deliver a competitive product as consumers become accustomed to advanced AI interactions [3][4]. - Apple has not had a significant AI launch since 2024, and the mixed consumer response to its previous AI features has raised concerns about its strategy [10][11][12]. - The company is expected to enhance Siri's capabilities, allowing it to intelligently make reservations based on user preferences [20]. Group 2: Competitive Landscape and Financial Performance - Apple stock has risen 12% in 2025, largely due to the successful launch of the iPhone 17, while Google has seen a 60% stock increase driven by its AI advancements [5]. - Despite concerns about its AI strategy, Apple's core business remains strong, with projected 10% revenue growth in the holiday quarter and expectations to be the top smartphone vendor in 2025 [24]. Group 3: AI Strategy and Leadership Changes - Apple has made significant changes in its AI leadership, including the retirement of its AI strategy chief and the hiring of Amar Subramanya from Google, indicating a shift in its approach to AI development [15][16]. - The company has increased its capital expenditures by 35% to $12.71 billion, but this is still significantly lower than competitors who have invested heavily in AI infrastructure [19][18]. Group 4: Future Outlook and Challenges - Analysts express that while Apple has time to refine its AI strategy, the upcoming Siri launch must meet high expectations to reassure investors [30]. - OpenAI's recent acquisition of former Apple design chief Jony Ive's startup poses a potential threat, as new AI-driven devices are being developed that could compete with Apple's offerings [28][29].