Apple Faces Technical Delays and Regulatory Hurdles Amidst Rising AI Competition

Apple confronts significant challenges as its software developer conference approaches. Delays in AI features and regulatory scrutiny threaten its App Store profits, while competition from AI advancements by rivals looms large. Analysts debate whether Apple's slow AI progress and high-priced Vision Pro headset impact its competitive standing.

Apple is navigating a complex landscape of technical setbacks and regulatory scrutiny as it prepares for its annual software developer conference. Significant delays in long-promised artificial intelligence features, including key Siri improvements, have cast a shadow over the event. Meanwhile, competitors like Google and Microsoft are captivating developers with new AI capabilities.

Regulatory pressures are simultaneously mounting, threatening to dismantle the lucrative structure of Apple's App Store amidst questions regarding its fee justification. Furthermore, the looming threat of a 25% tariff on Apple's iPhone exacerbates these challenges, reflected in the over 40% drop in Apple's share value compared to rivals like Microsoft and Google.

Despite launching some AI tools, Apple remains reliant on partners like OpenAI, with talk of opening its AI models to developers. Yet, analysts argue Apple lags in multi-modal AI technology compared to competitors, particularly in smart glasses, a market dominated by Meta and Google. Analysts suggest Apple's strategic partnerships may offset its lag in AI innovation.

(With inputs from agencies.)