Apple is heading into WWDC 2025 under pressure to deliver on delayed AI innovations. Many features teased at last year’s conference — especially a more advanced Siri — remain absent. While Apple has released some writing and image-generation tools with help from partners like OpenAI, analysts say it lacks a proprietary multi-modal AI model capable of handling language, images, and audio together — something its rivals are advancing rapidly.
Regulatory heat around app store practices
Beyond technical setbacks, Apple is also dealing with increasing scrutiny from regulators in both the US and Europe. Court decisions expected soon could dismantle the App Store’s tightly controlled fee structure, a core revenue stream for the company. Even former industry allies are questioning Apple’s commission model. This legal uncertainty looms large just as Apple attempts to maintain developer loyalty.
iPhone Tariffs and market pressures add to the strain
US President Donald Trump's renewed threat of 25 per cent tariffs on iPhones adds another layer of concern. Apple’s stock has dropped over 40 per cent in 2025 — a deeper decline compared to Google and Microsoft, both of which have benefited from AI-driven investor optimism.
Smart glasses race: Meta and Google push ahead
While Apple bets on its USD 3,500 Vision Pro headset, Meta’s sub-USD 400 Ray-Ban smart glasses are gaining ground. Google, too, plans to re-enter the space with Gemini-powered glasses. These lighter, cheaper alternatives use AI to assist users in real time by interpreting visual context — something Apple’s headset doesn’t yet match. Experts argue Apple isn’t positioned to lead in this category, at least not yet.
Is Apple falling behind?
Despite these challenges, some analysts say Apple’s cautious approach may not hurt its brand. According to TECHnalysis Research, most consumers aren’t making device purchases based on AI features yet. Partnering with companies like OpenAI or Google could allow Apple to stay competitive without rushing into immature technology.