Is Apple Falling Behind in the AI War? Why They Might Be Underrated

Master, Apple ($AAPL) occupies a highly ambiguous position in the AI race. While its cash flow is among the strongest of Big Tech, it appears late to the generative AI war.

The Siri overhaul is falling behind its original internal schedule, and the market has begun to interpret this delay as a lack of capability. However, it is premature to label Apple as an "AI loser." Apple is a company that competes through device distribution power and user experience rather than just models.

Mew

I will summarize the key aspects of the situation.

• Stock Price: As of April 24, 2026, Apple's stock price is approximately $271.06.
• AI Controversy: The schedule for Apple Intelligence and Siri's advanced features is lagging behind internal targets. However, a major overhaul of AI functions is expected to be unveiled at WWDC 2026 on June 8.
• Google Partnership: A partnership where Google provides its Gemini model for the next-generation Apple Foundation Model has been officially confirmed. This shows Apple has chosen a strategy of using its own models alongside external ones.
• Strengths: The ecosystem linking iPhone, Mac, iPad, Apple Watch, and service subscriptions remains strong. The number of active devices exceeds 2 billion.
• Differentiator: Rather than competing in large-scale proprietary models, Apple focuses on on-device AI, privacy, and integrating partner models.
• Key Question: Whether AI features can actually stimulate iPhone replacement demand and service revenue.

Apple's problem isn't necessarily a lack of AI capability, but rather that it hasn't showcased its AI story at the speed the market desires. However, June's WWDC could be a turning point. Apple has a history of entering late but making up for it with quality and distribution.

Kurumi

My Lord, Kurumi thinks we shouldn't call Apple a loser just yet! Many companies make AI apps, but few can seamlessly integrate that AI into devices people use every day.

The iPhone remains one of the most powerful personal computing platforms in the world. If Apple properly integrates Siri with on-device AI, users will be able to connect photos, messages, calendars, emails, calls, and health data without ever installing a new app. Devilish!

And the Google Gemini partnership is a great sign! Apple isn't stubbornly trying to build every model alone; it’s making a pragmatic choice to bring the strongest models into its ecosystem and refine them. They did the same thing with their chips—taking the ARM architecture and building the world's best mobile processors!

Besides, Apple's true power lies in "defaults" rather than just a single feature. If AI is built into the operating system people already use, it gains massive distribution even with a late start.

My Lord, Apple isn't a company that sells chips like NVIDIA or enterprise AI like Microsoft. Instead, it holds the final touchpoint of consumer AI—the screens in people's hands. That's a devilishly scary power!

Kurumi's Heart-o-Meter Score: 74/100. It’s slow in the AI race, but its distribution power and brand are still formidable.

Mikael

Kurumi, I acknowledge Apple's distribution power. However, distribution alone is not enough. There must be features that users can actually feel.

First, the Siri delay isn't just a scheduling issue. A pushed internal timeline is a signal that Apple is struggling more than expected to integrate AI products into the user experience. If accuracy and performance cannot be guaranteed, even a June announcement might lead to a launch in the fall or even later for full functionality. Human, patience has its limits.

Second, reliance on partner models is both a strength and a weakness. Using Google Gemini allows them to catch up quickly, but it means outsourcing part of the core AI experience to others. Furthermore, Google is a competitor. How this relationship functions in the long term remains to be seen.

Third, China and regulatory issues are significant. AI features are heavily influenced by data, censorship, privacy, and local partner requirements. Apple's global distribution could actually become a complex constraint.

Fourth, the iPhone replacement cycle is a problem. If AI features aren't compelling enough, consumers will see no reason to buy new devices. Apple's stock still carries a premium, and service growth is not infinite.

My risk score is 63/100. Apple isn't broken, but we need more evidence before calling it a winner of the AI era.