Wall Street has lost patience with Apple. Apple doesn’t say much while other tech giants compete against artificial intelligence and show off their data centers packed with Nvidia chips. That silence is beginning to raise real concern. Investors want more details. They have got nothing.
As of Tuesday, Apple Stock had fallen by more than 15% in 2025. Among the so-called Magnificent Seven, it is the second performer, with only Tesla, which has dropped by 20%, exacerbated.
Also, unlike Microsoft and Google, Apple has not made any major announcements on AI this year. According to For CNBC, some analysts have warned that delays in this strategy could ultimately slow iPhone sales.
Apple slows down Siri upgrades, Openai builds new devices
The company’s plans to release a stronger Siri have been pushed back. It will not arrive until at least 2026. The delay comes after former Apple design chief Jony Ive, who helped build and monitor the original iPhone, sold startup IO to Openai for $6.5 billion.
Openai CEO Sam Altman said his company is already developing new AI-powered hardware with that team. The timeline has not been shared yet, but Altman has confirmed that he is actively building it.
Openai is moving forward, but Apple’s instructions are unknown. That’s exactly what people like Krish Sankar from TD Cowen are worried about. In Monday’s note, Krish wrote: “The imperfect AI strategy remains the biggest overhang, but I think Apple still has about 1.5 years to bring about an attractive solution.” He still recommends buying stocks, but that confidence vote doesn’t erase the growing concern.
On Thursday, the company will report its third quarter financial results. But don’t expect much talk about AI. According to Factset, iPhone revenues expected for the quarter could be at just $40 billion. The services sector is projected to generate revenue of $26.8 billion and grow 11%, twice the company’s total growth.
Yes, Apple is still making money. And yes, people are still buying iPhones, Macs and watches. But that’s not a future strategy. Apple missed a shot last summer.
The company has introduced Apple Intelligence, a set of features that include AI tools to summarise emails and text, generate custom emojis, and update Siri visually. However, the more advanced version of Siri, which is the center of the update, has been delayed.
That delay killed hopes for a new upgrade cycle. Analysts were hoping for a rush of buyers looking for the latest AI tools. That sales did not surge.
Google, Openai and others outperform Apple on AI devices
Hardware games are changing. Most people who bought a new iPhone last year didn’t do it because of AI. A poll by Consumer Intelligence Research Partners found that 89% of those who upgraded again chose Apple, but only 13% due to new features. Most had replaced worn devices.
Even Apple knows things are changing. “I might not need an iPhone in 10 years,” the company’s service boss, Eddy Cue, told court earlier this year.
That warning is beginning to look authentic. Google has deep integration with Gemini, an AI assistant, into Android 16. Users can now control apps such as Maps and YouTube with Voice. You can also generate to-do lists based on YouTube videos. Siri can’t do that yet. Google CEO Sundar Pichai said in Alphabet’s latest revenue call: “We still hope that the phone will be at the heart of the experience for at least the next two to three years.”
Openai could be a real threat. With Jony installed, we are working on devices that don’t look like mobile phones, wearable pins, smart glasses and other screenless tools. Meta has already released Ray-Ban Smart Glasses. Openai has not announced what its products will look like or when it will be ready, but it is still in motion.
This situation reflects what happened in 2007. When Apple first introduced its iPhone, it sold just 1.4 million units in its first year.
That was nothing compared to the 435 million phones sold by Nokia. Four years later, Nokia collapsed, and Apple sold over 80 million iPhones a year. Now, Openai is building a new type of device. This time, Apple is left behind.
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