Apple Inc. is grappling with a major challenge—one that could overshadow concerns about tariffs, weak iPhone sales, or a slowing economy. The tech giant’s recent delay in rolling out advanced Siri features has sparked concerns among analysts and Apple enthusiasts alike. While some fear that customers may postpone iPhone upgrades until the new AI technology is available, a more pressing issue has emerged: Apple’s credibility is now at stake.
Apple’s AI Delays: A Credibility Crisis?
Prominent Apple analyst and blogger John Gruber, known for his insights on Apple’s strategy, recently criticized the company for prematurely promoting artificial intelligence capabilities that were far from ready. Writing on his respected Daring Fireball blog, Gruber didn’t hold back:
“Damaged is arguably too passive. It was squandered. This didn’t happen to Apple. Decision makers within the company did it.”
Apple first introduced its Apple Intelligence AI features at its WWDC developer event in June 2023, promising an enhanced, context-aware Siri. The AI-driven assistant was supposed to streamline everyday tasks, such as adding a friend’s address to contacts simply by asking Siri. However, despite heavy promotion—especially during the iPhone 16 launch—these features remain unavailable.
Overpromising and Underdelivering?
Apple’s marketing campaigns emphasized AI-enhanced Siri, even featuring commercials that depicted its advanced functionality. But the reality? These features couldn’t even be demonstrated to the media. Gruber posed a crucial question:
“Who decided these features should go in the WWDC keynote, with a promise they’d arrive in the coming year, when, at the time, they were in such an unfinished state they could not be demoed to the media even in a controlled environment?”
Apple’s decision to promote a non-functional product has led to skepticism. Some reports now suggest that these AI capabilities may not be available until months after the iPhone 17 lineup is unveiled.
A Reputation at Risk
Historically, Apple has built its brand on trust and reliability. When Steve Jobs returned in 1997, the company was financially unstable and had lost credibility. Jobs worked relentlessly to restore that trust by delivering products on time and as promised.
Apple CEO Tim Cook previously stated that the company does not rush announcements and prefers to unveil features when they are market-ready. However, the situation with Siri suggests otherwise. Instead of a real product demo, Apple showcased what Gruber called a “concept video,” something modern-day Apple does not typically do.
This situation mirrors the 2008 MobileMe debacle, where an Apple email service failed to work as advertised. Reports suggest that Jobs held an internal meeting, calling out employees for damaging Apple’s reputation. The question remains: Has Apple taken similar accountability this time?
Stock Market Fallout
The credibility crisis has had tangible effects on Apple’s stock. After Bloomberg confirmed the Siri delays on March 7, 2024, Apple’s shares took a 10.7% plunge in one week—a decline more than twice as steep as Tesla’s, which was the next-worst performer among the Magnificent Seven Big Tech stocks. Apple’s stock fell in four out of five trading sessions that week, reflecting investor concerns over its AI strategy.
What’s Next for Apple’s AI Strategy?
Despite the current setbacks, some analysts remain optimistic. Wedbush analyst Daniel Ives expressed confidence in Apple’s long-term AI vision:
“Rome wasn’t built in a day, and neither will Apple’s AI strategy. But the seeds of that strategy with Apple Intelligence are now forming and will transform the Apple consumer growth narrative over the coming years.”
Apple’s misstep with Siri could serve as a learning experience as the company refines its AI approach. But for now, the damage is done, and Apple must work hard to regain consumer and investor trust.
Apple’s current challenge isn’t just about AI delays—it’s about maintaining the reputation it has built over decades. In the fast-moving world of artificial intelligence, trust is everything. If Apple can’t meet its promises, consumers and investors alike may start looking elsewhere.
