Apple (AAPL, Financial) is confronting significant technological and regulatory hurdles as it hosts its annual Worldwide Developers Conference (WWDC). Despite previous promises, Apple has delayed many anticipated AI features to next year, while competitors like Alphabet's Google (GOOGL) and Microsoft (MSFT) are already enticing developers with new AI functionalities. Key improvements to Apple's digital assistant, Siri, remain unfulfilled.
On the regulatory front, both US and European courts are challenging the profitability barriers of Apple's App Store, with even former supporters questioning its fees' fairness. These issues are intensified by the US administration's threat of a 25% tariff on Apple's best-selling iPhones. Consequently, Apple’s stock has dropped over 40% this year, falling more than Google and lagging behind Microsoft’s AI-driven growth.
While some AI tools promised by Apple have been released, others still rely on partners like OpenAI, the creator of ChatGPT. Analysts suggest Apple lacks a "multimodal" AI model capable of understanding images, audio, and language simultaneously, a gap its rivals like Meta Platforms (META) and Google are already exploring with smart glasses.
