When Apple unveiled its revamped Siri last June, the company presented it as a new era for the 13-year-old digital assistant.
Apple showcased how the virtual assistant would be able to cross-reference a user’s emails, texts, and real-time flight data. The goal was to answer complex questions, such as “When is my mom’s flight landing?” followed by “What’s our lunch plan?” However, that vision is proving to be further from reality than anticipated.
On March 7, Apple announced it was pushing back an upcoming Siri upgrade. This upgrade would have enabled Siri to provide more personalized answers with a user’s iPhone data and take actions within apps on a person’s behalf. According to a Bloomberg report on Friday, the delay has fueled concerns that Apple could fall behind in the AI race. The executive in charge of the product reportedly called the holdup “ugly” and “embarrassing.”
AI is believed to be the next evolution of the internet, potentially changing the way people work, communicate, and get information. Apple defined the mobile era in 2007 with the iPhone, which laid the foundation for a dominant computing device. Now, all eyes are on Apple to lead the AI revolution.
But the clock is ticking. Rivals are releasing new models, chips, and AI-powered features at a faster pace than other technological shifts. Like many tech giants, Apple is also grappling with the looming threat of tariffs on imports from China, where key parts of the iPhone supply chain are located. Furthermore, Apple’s sales in China declined 11% year-over-year, as CEO Tim Cook stated on the January earnings call. Although overall revenue grew 4% year-over-year, global iPhone revenue – a driving factor of Apple’s more than $3 trillion market cap – fell short of Wall Street’s expectations in Apple’s fiscal first quarter.
On Tuesday afternoon, Apple stock was down about 12% year to date.
Despite these issues, Apple’s large user base and the iPhone’s ubiquity provide advantages. “If times are tough, Apple is pretty well-positioned because their main business is a smartphone,” said Barton Crockett, managing director and senior research analyst at Rosenblatt Securities. “And the smartphone is arguably now a consumer staple and one of the most indispensable staples that you have.”
Apple did not immediately respond to requests for comment.
There have long been concerns that Apple Intelligence – the company’s artificial intelligence features for iPhones, Macs, and iPads – was falling behind in AI. Apple did not launch its first wave of Apple Intelligence features until October, missing the iPhone 16’s September launch and coming months after rivals, such as Google and Samsung, began incorporating more AI tools into their phones.
By the end of 2024, most Apple Intelligence features, like the ability to generate custom emojis or use ChatGPT through Siri, had arrived. The overhauled version of Siri aims to start a significant change in how people use their iPhones.
Instead of having to jump between apps to retrieve a photo or edit a recipe, users will be able to simply ask Siri. Samsung and Google are also trying to incorporate these ideas into their Android phones.
Apple initially planned to roll out these advanced Siri features within a year. But, according to spokesperson Jacqueline Roy, “it’s going to take us longer than we thought to deliver on these features.” The company anticipates “rolling them out in the coming year,” according to a statement that appeared on the tech news blog Daring Fireball on March 7.
Meanwhile, Apple’s rivals are further personalizing their AI helpers. Google recently added the ability for Gemini to customize responses based on a user’s search history. Last month, Amazon also announced Alexa+, which remembers a user’s preferences when answering questions.
“Apple needs to be relevant here,” said Ben Bajarin, CEO and principal analyst of market research firm Creative Strategies. “I think the fact that they don’t have a lot to show for their efforts is what gives most people the concern.”
A delay such as this is uncharted territory for Apple. The iPhone maker is used to grappling with a challenging market in China—particularly as domestic tech brands gain more traction in the country. Apple has also grown digital services and wearables over the last decade to offset periods of slow iPhone sales.
Apple managed to navigate tariffs during the previous Trump administration. However, a product delay is rare. “I can’t remember Apple doing anything like that in the past,” said Gene Munster, managing partner for Deepwater Asset Management. “It doesn’t mean that their culture and their DNA has changed, but I think it speaks to how much scrambling they’re doing.”
While the iPhone isn’t going anywhere any time soon, keeping its iPhone business healthy may not always be enough for Apple.
Eventually, Apple will need to establish itself as a leader in the AI space. So far, Apple hasn’t proven it can do that with Apple Intelligence. The longer it takes to release the new Siri version, the longer it will be until that question is answered.
However, some analysts believe Apple’s future is bright despite the setbacks. Dan Ives of Wedbush Securities wrote in a recent research note, “Apple will make new…highs in 2025.” On the most recent earnings call, Cook also said iPhone sales were stronger in markets where Apple Intelligence is available.
There could also be valid reasons for postponing Siri’s rollout. If the new version isn’t working the way Apple intended, a delay could prevent mishaps. Apple is also reportedly working on a new slimmer version of the iPhone this year. That could help boost interest in the company’s most important product as rivals in China experiment with new smartphone designs.
Ultimately, the Siri postponement isn’t enough to call Apple’s broad vision into question, Crockett said. “The road that they’re going down is clear, which is that these features are going to emerge, they’re going to improve,” he said. “So the future functionality of the iPhone will be better than the past… There (are) some better things to look forward to.”
