Apple enters its annual Worldwide Developers Conference (WWDC) grappling with delayed AI advancements, looming regulatory threats, and a sharp stock decline, as competition from rivals Google, Microsoft, and Meta intensifies.
AI Promises Still Unmet
One year after Apple promised sweeping AI enhancements—including a revamped Siri and multimodal intelligence—the company is now reportedly pushing many of those features to 2026, falling behind peers like Google, Microsoft, and Meta, who have made significant strides in integrating generative AI into consumer tools.
Though Apple has rolled out text and image-generation features—some in partnership with OpenAI—analysts say it still lacks a proprietary multimodal model that can process text, audio, and visual inputs simultaneously. This puts Apple at a disadvantage in emerging platforms like smart glasses, where real-time, context-aware assistance is key.
“Apple is not positioned to deliver what Meta is offering with its smart glasses today,” said Ben Bajarin, CEO of Creative Strategies.
Vision Pro vs. Smart Glasses: A Market Mismatch?
Apple’s flagship $3,500 Vision Pro mixed-reality headset has gained developer interest but lacks the mass-market appeal of Meta’s AI-enabled Ray-Bans, which start under $400. These glasses offer camera-based, voice-activated interaction—something Apple has yet to match with comparable hardware or AI.
Google, meanwhile, has announced plans to re-enter the smart glasses race, potentially pairing them with its Gemini multimodal model.
“Meta has the lead, but Google has the best-suited AI,” said Anshel Sag, principal analyst at Moor Insights & Strategy. “Apple’s Vision Pro is still more of a showroom product.”
Legal and Economic Headwinds
Apple’s AI delay comes as regulators in the U.S. and Europe move closer to dismantling key parts of the App Store business model. Courts are reconsidering the legitimacy of Apple's longstanding commission structure and gatekeeping power over third-party apps—a model under increasing scrutiny.
Meanwhile, U.S. President Donald Trump’s threat of 25% tariffs on iPhones adds another layer of uncertainty. Combined with AI delays and weak investor confidence, Apple stock has fallen over 40% year-to-date, significantly underperforming peers.
Will Developers and Users Wait?
Despite the setbacks, some analysts argue Apple may not be at a critical disadvantage—yet.
“There's no strong evidence consumers are making buying decisions based on AI alone,” said Bob O’Donnell, CEO of TECHnalysis Research. “Partnering with OpenAI, Google, or even Perplexity could be enough in the short term.”
Still, Apple’s long-term dominance in hardware will increasingly depend on matching or exceeding its rivals in native AI capabilities—particularly as smart glasses, ambient computing, and real-world AI assistants gain traction.
As Apple executives prepare for today’s WWDC keynote, the pressure is on to convince developers, regulators, and investors that the company remains a key player in the AI-powered future—despite mounting challenges.