On Monday, Apple took a cautious approach towards generative AI, even though competitors are pushing ahead rapidly and analysts on Wall Street are questioning its strategy.

The spotlight was on Apple during its annual Worldwide Developers Conference (WWDC), especially since the tech giant had promised improvements to Siri, its voice assistant, last year but didn’t deliver.

WWDC is an important event where developers learn to create apps and tools for Apple devices.

Despite previous letdowns, Apple reassured everyone that it’s still in the AI game, introducing some new features for its Apple Intelligence software. Developers will soon be able to tap into a device’s AI capabilities directly.

This means users could interact with apps that use generative AI even when they’re offline, allowing activities like chatting with a hiking app when they are in remote locations.

Tim Cook, Apple’s CEO, noted that Siri’s enhancements are still in the works and “require more time to meet our high standards,” especially regarding privacy and data security.

“We are making progress, and we can’t wait to get these features into the hands of our customers,” he added.

Analyst Gadjo Sevilla from Emarketer pointed out that the delays in Apple’s AI projects will continue to be under the microscope.

“With competitors like Google and Samsung advancing rapidly and integrating new AI features or collaborating with AI startups, Apple may feel the heat,” he explained.

The highlight of the event was the announcement that Apple would rename its operating systems to better align with their release years.

The upcoming system will be called iOS 26 and will roll out across all Apple products—like the Mac, Watch, and Vision Pro headset—later this fall, coinciding with the anticipated launch of the iPhone 17.

Currently, Apple’s devices have varied names for their operating systems, such as iOS 18 for iPhones and macOS 15 for Macs.

Apple also revealed that this will be the first major redesign of iOS since 2013, introducing a new style labeled “Liquid Glass.”

Wall Street’s Mixed Reactions

In recent years, the relationship between Apple and app developers has been strained, as developers have been frustrated by high fees to access the App Store.

A lengthy legal battle initiated by Fortnite’s creator, Epic Games, resulted in a ruling requiring Apple to allow alternative payment systems in the U.S. App Store.

Adding to the uncertainty surrounding Apple’s future is the fact that Jony Ive, the renowned designer behind the iPhone, has teamed up with OpenAI, the maker of ChatGPT, to explore creating a competitor device aimed at AI engagement.

Moreover, Apple is also navigating tariffs imposed by former President Donald Trump during his trade disputes with China, a significant market for Apple and where most iPhones are produced.

Trump had threatened to levy tariffs on Apple if the company didn’t shift its production to the U.S., a challenge that analysts believe would be impractical given the associated costs and requirements.

Opinions remain divided among analysts regarding Apple’s future, especially since its stock has fallen about 17% since the start of the year, erasing over $600 billion in value and trailing behind its tech competitors.

Some experts are optimistic about Apple’s ability to monetize AI in the long run, while others fear the company’s cautious strategy may hinder its growth.

According to Dan Ives of Wedbush Securities, “WWDC didn’t unveil significant advancements in Apple’s intelligence, as the company is treading cautiously after last year’s missteps.” He noted, “We believe Apple can succeed in this area, but they have a limited timeframe to make it happen.”