Apple Faces Challenges from AI Delays, Stock Slump

Apple Inc. is facing significant challenges as it grapples with delays in its AI projects and a sluggish rollout of its next-generation Siri, resulting in a 14% year-to-date decline in stock performance. Analyst Daniel Ives highlights concerns over these AI delays, suggesting that if Apple's Siri revamp does not succeed, it could impact iPhone sales, with potential delays of around 10 million units into the next fiscal year. Despite these setbacks, Ives maintains a positive outlook for long-term growth, predicting continued strong iPhone sales in the future. Internally, employees express frustration over the slow progress of Siri's AI enhancements, which were intended to compete with advanced AI assistants from Google and Microsoft. As competitors advance rapidly in the AI space, Apple is perceived to be lagging due to its focus on on-device processing, which limits Siri's dynamic learning capabilities. The combination of these factors has led to a cautious sentiment among investors, although some analysts see this as a potential buying opportunity for long-term investors.