While Apple trails behind tech giants like Google and Samsung in integrating AI into smartphones, this delay has unexpectedly worked to its advantage in the stock market. Apple hyped its AI ambitions with Apple Intelligence but has yet to deliver fully, and the long-anticipated AI-powered Siri release has been postponed until next spring. Although lagging in AI adoption might seem like a disadvantage, Apple’s more cautious approach has carved out a unique position for the company.
The Silver Lining of Apple’s AI Delay
Apple is substantially behind Google and Samsung in rolling out AI-driven features to smartphone users. Google’s Pixel devices, for instance, boast AI capabilities such as Magic Cue, which proactively delivers information from messages, calendars, and emails. While not flawless, these innovations surpass Apple’s current AI offerings, which largely enhance tasks like email composition without proactive assistance.
Will Apple Ever Catch Up in AI?
Despite being behind in smartphone AI, there is one area where Apple’s AI slowness is seen as positive: the stock market. November saw many AI-focused tech companies suffer declines — Nvidia dropped 8.08%, Alphabet fell 2.58%, Microsoft slid 1.47%, and Amazon dropped 3.90%. Apple, contrastingly, saw its stock rise 0.75% this month.
One contributing factor to Apple’s stock resilience is its restrained spending. Unlike Microsoft, Amazon, Google, and Meta, which collectively invested $100 billion in property and equipment last quarter, Apple’s expenditure was a modest $3 billion. Notably, Apple’s 2024 iPhone event featured no mention of AI, a stark departure from the hype dominating competitors' launches.
Apple’s Strategic Collaboration with Google on AI
Apple is reportedly partnering with Google to leverage a custom 1.2 trillion parameter version of Google’s Gemini Large Language Model (LLM) to enhance Siri. This is a significant upgrade compared to Apple’s existing 150 billion parameter AI model. With Apple expected to pay approximately $1 billion for this deal, the company is clearly choosing to collaborate rather than compete aggressively on AI infrastructure.
Meanwhile, many iPhone users eagerly await iOS 26.4, which should introduce a more AI-capable Siri able to access emails, messages, and calendars to answer personal queries. Unlike Pixel’s Magic Cue, which provides proactive AI assistance, Siri will still require users to initiate queries.
Looking Ahead: Apple and AI Innovation
In the rapidly evolving tech landscape, Apple’s position could change drastically within a year. The company may develop AI features rivaling Pixel’s Camera Coach or introduce other innovative daily-use tools powered by AI. However, Apple must prioritize practical AI applications that genuinely assist users in their everyday lives rather than focusing solely on hype.
