Apple Intelligence has quickly become a case study in how even the world’s most valuable company can stumble in a fast-moving technology race.
When the company announced its new AI rollout in 2024, Siri’s upgrade was central to the hype.
But as of now, this upgrade has been postponed.
As a result, iPhone users are complaining, investors are concerned about the company’s growth trajectory, while analysts are raising questions about Apple’s execution and long-term AI strategy.
The Siri problem that won’t go away
Apple Intelligence was positioned as the company’s flagship AI platform, unveiled at the Worldwide Developers Conference (WWDC) in June 2024.
It promised to bring exciting AI capabilities across Apple’s ecosystem, anchored by a long-overdue overhaul of Siri.
However, as of March 2025, Apple has delayed the key Siri upgrades “indefinitely,” indicating deep-seated issues beneath the surface.
This delay follows a class action lawsuit filed in San José, California, accusing Apple of misleading marketing.
The suit targets a major ad campaign from September 2024, where actress Bella Ramsey was seen using a Siri that could recall past interactions and offer advanced contextual help.
Plaintiffs argue these features were never ready for launch. In response, Apple quietly pulled the commercial from YouTube.
Siri’s real-world performance has continued to disappoint. Simple queries, such as “What month is it?”, confuse Siri even on the latest devices.
This shortfall has long been criticized by users. And now, it’s forcing Apple into the unfamiliar position of defending itself both in courtrooms and in the market.
Siri’s current struggles aren’t entirely new. Since its acquisition by Apple in 2010 for over $200 million, Siri has consistently underwhelmed.
Originally developed by SRI International for DARPA, Siri was integrated into iPhones with lofty promises.
However, early versions lacked advanced natural language processing and were based on simple keyword matching.
Former Apple executive Richard Williamson has said the original Siri was never scalable, describing it as a product of “smoke and mirrors.”
Apple’s secrecy is backfiring
The Siri situation exposes deeper cracks in Apple’s innovation model.
In the past, Apple’s legendary secrecy has been its competitive advantage. Lately, it appears to be a liability.
Critics argue that strict internal silos where employees can only collaborate if formally “disclosed” on the same project, limits knowledge sharing across teams.
AI development thrives on open, iterative feedback between engineering groups.
Apple’s AI teams working on Siri have reportedly been cut off from others developing related technologies, such as FaceID or computer vision systems from the defunct self-driving car project.
This stands in stark contrast to the cultures of companies like OpenAI and Google, where cross-team collaboration and fast iteration cycles have been critical in shipping widely adopted AI products.
Despite its immense resources, Apple’s rigid internal structure has slowed its ability to keep pace in the AI arms race.
Privacy comes at a cost
Apple’s commitment to privacy further complicates Siri’s evolution.
While Google Assistant and Amazon’s Alexa rely on cloud-based data processing to personalize and improve their services, Apple limits data collection, processing much of it directly on-device.
The upcoming Siri will split its tasks between a local AI model and cloud-based queries processed by OpenAI’s servers; but only with user consent.
Apple’s on-device AI model, built on roughly 3 billion parameters, is minuscule compared to GPT-4’s 1.8 trillion parameters or even smaller models like DeepSeek r1 with over 600 billion.
The consequence is a Siri that may remain fundamentally weaker than its competitors, often needing to “pass off” tasks to the cloud while maintaining Apple’s privacy commitments.
Critics argue that Apple’s privacy-first model is starting to limit the company’s ability to deliver AI tools that feel truly seamless and powerful.
Is this a problem of leadership?
Apple Intelligence’s stumbles are one of the few high-profile miscalculations under CEO Tim Cook, whose tenure has been defined by operational discipline and supply chain mastery.
Yet Bloomberg’s reporting suggests that when Apple showcased Siri’s upgrades at WWDC 2024, the technology was still a “barely working prototype.”
This approach deviates from the playbook established under Steve Jobs, where products were announced only when ready to ship.
Some analysts believe the AI rush and competitive pressure from OpenAI and Google may have pushed Apple into premature commitments.
The legal risks, user dissatisfaction, and now market skepticism surrounding Apple Intelligence have cast a shadow over Apple’s AI strategy at a pivotal moment for the company and the broader tech sector.
Should investors be concerned?
Apple’s recent missteps are playing out in the stock market.
The company’s shares are down 13% year-to-date, partly due to its own shortcomings and partly due to the current macroeconomic backdrop.
Apple now trades at a price-to-earnings ratio of 35—down from 40 at the start of the year but still at a premium compared to many large-cap peers.
Investors are questioning whether Apple’s high valuation is sustainable if it continues to lag in AI.
Apple’s ability to generate premium pricing and customer loyalty has historically hinged on delivering polished, integrated products.
But with Siri falling short and Apple Intelligence yet to materialize fully, there are mounting concerns that Apple’s competitive moat in software services may be narrowing.
However, the company is still financially healthy and has a loyal customer base.
It would take a lot more than an underpromise to hurt the company in a truly meaningful way.
Although Apple is unlikely to fall overnight, it is clear that its leadership, development model, and AI strategy will face increasing scrutiny from both Wall Street and Silicon Valley.
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