«The silence about Siri was eloquent»: what analysts are saying after Apple's conference

Apple didn't present anything at its June 9 developer conference that would free it from its status as a laggard in the AI race, Wall Street analysts agree. At the same time, the window of opportunity for the iPhone maker is narrowing, they warn: to turn things around, Apple may need to splurge on buying third-party technology. Apple shares are down 1% amid a lack of bright news, and are down nearly 20% since the beginning of the year.  

«The silence about Siri has been eloquent,» Forrester Research analyst Dipanjan Chatterjee told the Associated Press. - No matter how many text autos and funny emoji you add, they won't fill that gaping void where the intuitive, interactive AI system that Siri might be capable of should be. The problem is, we don't know when that will happen. The runway for Siri is running out, and it's time for Apple to take off.»

Apple used the WWDC conference to show that it still has a strategic plan for AI, even if it will take longer to realize it than expected a year ago, said IDC analyst Francisco Geronimo. «This event was not about breakthrough technologies, but about cautious calibration, refining the platform and enabling developers. It's about preparing the ground for future steps, not presenting revolutionary solutions,» said he to the AP.

Apple has done nothing to change the perception that it is lagging behind its competitors in AI, Melius Research analysts said. What could change the situation, they believe, would be new partnerships and services in AI. «Even an acquisition uncharacteristic of the company could be a good idea and get Apple on the right side of the AI narrative faster. Something like startup Perplexity - its recent $14 billion valuation would be a crapshoot for Apple,» the analysts wrote in a note that quoted by MarketWatch.

«The Cupertino-based company is proceeding cautiously and not revealing its cards after last year's missteps,»  noted Wedbush analyst Dan Ives. - The strategy is clear, but Apple has a big year ahead of it: to monetize AI, Tim Cook and his team may have to make major acquisitions in the field to accelerate its AI strategy. We have a high degree of confidence that Apple will pull it off, but the window of opportunity is narrowing - and that's what will be the focus of investors' attention over the coming year.»

The developer conference disappointed investors, with Apple shares falling 1.2% to $201.5 on June 9. The drop since the beginning of the year already exceeds 19%. According to data from MarketWatch, 31 of the 50 analysts tracking Apple now advise buying its stock - one less than a month ago.  

Like many companies, Apple was caught off guard by the release of OpenAI's ChatGPT in 2022, which is when the current AI boom began, writes Barron's. While AI has long been used inside Apple products to improve photo, video, and sound quality, for example, the company has failed to turn Siri into a full-fledged conversational assistant capable of competing with today's chatbots.

In 2024, the company outlined its strategy for AI in devices by introducing a set of new features under the Apple Intelligence brand. However, the launch of some of the features was delayed, and those that came out received mixed reviews, recalls Barron's. Speaking about Apple Intelligence at WWDC, Craig Federighi, Apple's senior vice president of software engineering, said the company «continues to work on features that will make Siri even more personalized» and «looks forward to talking more about it next year.»

The delay in launching AI is partly due to privacy and security concerns, Apple itself claims. The manufacturer has more than 2 billion active devices, and any software update instantly reaches a huge audience. After a poor response to the first firmware versions with Apple Intelligence, the company has become more cautious. To ensure security, the company is also computing on its own Private Cloud Compute infrastructure. This puts Apple at a disadvantage compared to competitors using Nvidia's technology, Barron's notes.