Potential Collaboration between Meta and  Apple in AI

Potential Collaboration between Meta and  Apple in AI: Meta, the parent company of Facebook,
is in talks with Apple to explore the possibilities of integrating their artificial intelligence models,
aiming to enhance the capabilities of Apple’s AI system. 


Content

Collaboration Talks

Expanding Partnerships

Reactions and Developments

Launching Apple Intelligence

Conclusion

 

 

 

 

Collaboration Talks

According to reports from the Wall Street Journal,
Meta has been discussing with Apple the integration of its generative AI model into Apple’s AI system for the iPhone.
Apple, which has developed smaller AI models, seeks to leverage partnerships to perform more complex and precise tasks.

 

Expanding Partnerships

In addition to Meta, companies Anthropic and Perplexity are also discussing integrating their technologies into the Apple Intelligence system with Apple.
This move indicates Apple’s desire to expand its collaboration with AI developers to enhance its technological functions.

 

Reactions and Developments

Apple did not respond to Bloomberg’s requests for comments outside regular business hours,
and Meta refrained from commenting on the talks.
These developments suggest early steps toward cooperation that could reshape the technological capabilities of both giants.

 

 

 

 

Launching Apple Intelligence

In an effort to bolster its presence in artificial intelligence,
Apple launched the Apple Intelligence service on June 10 during the Worldwide Developers Conference.
This new service is designed to enhance text summarization,
create original images, and retrieve the most relevant data for users when needed.

 

Conclusion

As the focus on artificial intelligence increases,
partnerships between major technology companies emerge as a strategic step to stay at the forefront of innovation.
The talks between Meta and Apple could open new horizons for developing technologies that change how we interact with smart devices.

 

Potential Collaboration between Meta and  Apple in AI

Apple Reclaims Its Throne: Stock Surge Propels It Back to Global Leadership

Apple Reclaims Its Throne: Stock Surge Propels It Back to Global Leadership: Apple’s stock value has surged significantly over the past few days,
reclaiming its title as the highest-valued company from Microsoft.
This rise reflects improved investor sentiment regarding Apple’s growth and its position in artificial intelligence.

 

Content

Apple Stock Performance

The AI Race
Recent Performance of Apple Stock

 Apple’s AI Capabilities

 Impact of Recent Positives

 

 

 

Apple Stock Performance

Apple’s stock recorded an 11% increase over three sessions, adding $323.9 billion to its market value.
This surge has been the strongest since August 2020 and has led to the company closing
with a market capitalization of $3.285 trillion, compared to Microsoft’s $3.282 trillion.
This achievement marks the first time since January that Apple has closed with a higher market value than Microsoft,
representing the latest shift among the largest stocks on Wall Street.
Earlier this week, Apple was third behind Nvidia.

 

The AI Race

Rees Williams, Chief Strategist at Wayve Capital Management,
highlighted a strong conviction that both Apple and Microsoft will be winners in artificial intelligence.
He noted that this market could generate substantial profits for the victors,
predicting that Apple and Microsoft will compete significantly soon, with Nvidia also entering.

 

Recent Performance of Apple Stock

Apple’s stock rose by 0.6% on Thursday, continuing its upward trend for the third consecutive session.
On Tuesday, it recorded the largest one-day increase since November 2022.
This 11% rise over three sessions boosted the company’s market value by $323.9 billion,
which is larger than all but a few components of the S&P 500 index. On the other hand, Microsoft’s stock increased by 0.1% on Thursday.

 

 

 

 

Apple’s AI Capabilities

The catalyst for Apple’s stock rise was a presentation at the Worldwide Developers Conference on Monday,
which focused on artificial intelligence.
This presentation raised hopes that customers would pay for the next generation of iPhones,
potentially spurring the long-awaited growth revival.
Apple’s revenue declined by 4.3% in the second fiscal quarter, marking the fifth decline in the past six quarters.

Wamsi Mohan, an analyst at Bank of America, wrote that AI capabilities will likely drive a multi-year upgrade cycle of faster replacements,
more switching, and higher average selling prices.
He suggested that Apple Intelligence could lead to a major upgrade cycle, noting that consensus estimates are very low.

 

Impact of Recent Positives

The AI event followed a positive quarterly report in early May
when Apple also announced a $110 billion share buyback plan,
the largest repurchase program in U.S. history. Despite recent strength,
growth concerns have limited Apple’s gains compared to other major tech companies.
Thursday’s stock rise pushed Apple’s year-to-date gains to 11%, which is less than the Nasdaq 100 index’s 16% gain.
Stocks with greater AI capabilities, including Microsoft, Amazon, Alphabet, and Meta,
have all outperformed Apple this year, while Nvidia’s stock has soared more than 160%.

 

Apple Reclaims Its Throne: Stock Surge Propels It Back to Global Leadership

Apple Launches Long-Awaited AI Tools and Partners with OpenAI

Apple Launches Long-Awaited AI Tools and Partners with OpenAI: Apple announced long-awaited AI features,
including tools supported by OpenAI’s ChatGPT.
These announcements came during the company’s annual Worldwide Developers Conference,
where Apple promised to deliver customized, secure, and deeply integrated technology in its device programs
.


Contents

Market Reaction

Operating System Updates

Partnership with OpenAI

Data Security

Operating Systems

Glasses and AirPods

Pressure on Tim Cook

 

 

 

Market Reaction

The market reaction to the event was lukewarm, as stock prices dropped by approximately 2% at 2:52 PM New York time.

 

Operating System Updates

At the conference, Senior Vice President Craig Federighi revealed new versions of the operating systems for iPhone, iPad, and Mac.
He announced that iOS 18 will allow users to customize and secure their apps, including a feature to lock apps.
Email and messaging applications also received new features.

 

Partnership with OpenAI

The partnership with OpenAI will allow Apple customers to access ChatGPT through the Siri digital assistant at no additional cost.
Federighi confirmed that the new features will be available
beta testing later this year, with some capabilities arriving in 2025.

 

Data Security

Apple focused on ensuring customer data security, with Federighi announcing a “Private Cloud Compute” system
that helps keep user information secure when sent to data centers.

 

Operating Systems

Apple showcased updated versions of all its operating systems,
with a focus on AI details that investors and users anticipated the most.

 

Glasses and AirPods

Apple announced “VisionOS 2,” the latest version of the Vision Pro glasses operating system.
The system allows users to convert regular photos into 3D images and update the interface with new gestures.
The company also revealed plans to launch the glasses globally.
Additionally, a new update for AirPods will improve voice clarity during phone calls by reducing background noise.

 

Pressure on Tim Cook

Tim Cook, Apple’s CEO, is under pressure to demonstrate that the company can lead in AI innovation again,
especially with declining revenues in five of the past six quarters.
Apple faces intense competition from companies like Google, Microsoft, and Meta Platforms.

 

Apple Launches Long-Awaited AI Tools and Partners with OpenAI

Siri and AI Renewal

Siri and AI Renewal: Apple is seeking to renew its virtual assistant Siri by equipping it with a range of advanced AI features,
allowing users to control individual app functions with their voice, according to people familiar with the matter.
According to those who requested anonymity because the initiative is not public,
the new system will allow Siri to control all app features for the first time.
They indicated that this change requires updating Siri’s core system using large language models
a key technology behind generative AI tools—and will be one of the highlights of Apple’s renewed push towards adopting AI tools.

 

Content

Intensifying Talks with OpenAI
New AI Features

Integrating AI into Siri
Apple’s Response to Decline
AI Strategy

Future Plans
Protecting Privacy and Data
Reviving Siri and New Features

 

 

 

 

Intensifying Talks with OpenAI

Apple is intensifying its talks with OpenAI to integrate AI into the iPhone.
This update is just one part of the company’s larger AI strategy, which will be unveiled during the Worldwide Developers Conference on June 10.
Apple is preparing several features, including transcribing and summarizing voice memos,
quick summaries for websites and notifications, automated message responses, advanced photo editing, and AI-generated emojis.

 

New AI Features

In the beta version, the devices will process more basic AI tasks, while cloud computing will handle the more advanced capabilities.
The company has also made a deal with OpenAI to integrate the startup’s chatbot and other technologies into iOS,
and it is still in talks with Alphabet, Google’s parent company, about using its Gemini program in the future.


Integrating AI into Siri

Siri will be a major focus at the Worldwide Developers Conference.
The new system will allow the assistant to control and navigate the iPhone or iPad more accurately.
This includes the ability to open individual documents, move a note to another folder, send an email,
delete it, open a specific post in Apple News, send a web link via email, or even ask the device for a summary of a particular article.

 

Apple’s Response to Decline

A representative for Apple, headquartered in Cupertino, California, declined to comment.
Apple is launching a new AI-enhanced iPad Pro to revive its declining sales.
Siri mostly handles broader commands like playing music playlists, searching for information, or controlling smart home devices.

 

 

 

AI Strategy

The new system will go further by using AI to analyze what people do on their devices and enable features controlled by Siri automatically.
This will be limited to Apple’s apps, as the company plans to support hundreds of commands.

 

Future Plans

The new Siri system will initially handle one command at a time,
but Apple plans to allow users to give a set of commands together.
For example, they could ask Siri to summarize a recorded meeting and then send it to a colleague in one request.
Or, theoretically, they could ask the iPhone to crop a photo and then email it to a friend.

 

Protecting Privacy and Data

This has raised some privacy concerns. Although on-device tasks will not share personal information,
the cloud-based approach will require transferring some user data to remote servers.
Bloomberg reported earlier this month that this information will be protected through
what’s called the Secure Enclave in Apple’s advanced Mac chips that power data centers.

Apple will try to reassure customers that their data is safe by creating an “intelligence report” explaining how information is secured.
The iPhone manufacturer will not build customer profiles, something Google and Meta Platforms have been criticized for doing.

 

Reviving Siri and New Features

With the upgrade of the Siri system, Apple aims to revive a leading product that has fallen behind competitors’ services.
Apple first launched Siri in 2011, giving it an edge in voice and AI interfaces.
However, Apple quickly lost this lead to Amazon’s Alexa and Google Assistant.
Two years ago, it stumbled again with the emergence of generative AI chatbots.

Apple is now betting that the new AI features for iPhones, iPads, and Macs,
along with Siri improvements, will encourage users to update their devices.
Many AI capabilities will require the iPhone 15 Pro or something newer.
Meanwhile, Macs and iPads will need at least the M1 chip.

 

Siri and AI Renewal

Microsoft Unveils New Smart Software

Microsoft Unveils New Smart Software and Devices to Compete with Apple and Google

Microsoft aims to demonstrate the capabilities of generative AI in revolutionizing computing for ordinary consumers, not just for businesses. The company announced the launch of new software and computers integrated with AI features to bolster its efforts in competing with Alphabet’s Google and Apple as the AI era dawns.

 

Topic

Details

 

 

 

 

Details

During an event held on Monday at Microsoft’s headquarters in Redmond, Washington, CEO Satya Nadella unveiled a new category of AI-focused computers called “Copilot + PC.” The company explained that the Surface devices produced by Microsoft and its manufacturing partners will be more powerful and 58% faster than Apple’s MacBook Air M3.

 

Microsoft also mentioned that the updated version of OpenAI’s GPT-4, known as GPT-4o, will soon be integrated into the company’s Copilot AI assistant. They showcased a new feature called “Recall,” designed to help users find tabs, files, emails, or chats embedded in the browser using conversational language commands. Yusuf Mehdi, Microsoft’s Chief Consumer Marketing Officer, described this feature as akin to “photographic memory.”

 

Although Microsoft was an early adopter of integrating AI into its Bing search engine, Nadella expressed frustration over the company’s slower pace in launching compelling consumer products, as reported by Bloomberg earlier. To address this, the company appointed Mustafa Suleyman, co-founder of DeepMind, in March to oversee consumer AI efforts.

 

Nadella stated, “The quest has always been about building computers that understand us, rather than us having to understand the computers. I feel that we are really close to this true achievement.”

 

 

Microsoft Unveils New Smart Software

New Agreement Between Apple and Open AI

New Agreement Between Apple and Open AI

Apple is nearing an agreement with Open AI to incorporate the “Chat GPT” technology into iPhone devices as part of its efforts to enhance the use of artificial intelligence in operating systems.

 

Topic
Details

 

 

 

 

 

Details

 

The Agreement:

Apple is on the verge of signing an agreement with Open AI to use the “Chat GPT” artificial intelligence technology.
This involves integrating the technology directly into the upcoming iOS 18 operating system.
The parties are currently discussing terms of use and integration,
with a special focus on privacy and security, which are critical aspects for Apple.

 

Applications and Features:

Apple is expected to introduce new features based on “Chat GPT,” such as enhancing its voice assistant Siri,
and providing new services for intelligent interaction with users across various apps.
These features may include automatic text generation,
smart responses, and personal data analysis in a way that respects user privacy.

 

Discussions with Google:

In addition to collaborating with Open AI, Apple is in discussions with Google about
licensing other technologies like the “Gemini” program.
These talks may reflect Apple’s strategy to explore multiple options in artificial intelligence and ensure a diversity of features and capabilities in its systems.

 

Developers Conference:

Apple is expected to officially announce these new features at its annual Worldwide Developers Conference (WWDC) in June. This conference will be an opportunity for Apple to demonstrate
how the new technologies are integrated into its platforms and how developers can use these technologies
to create new apps and services.

 

Executive Statements:

 Tim Cook, CEO of Apple, has mentioned his personal use of “Chat GPT,”
acknowledging that there are challenges that need to be addressed before a broad rollout.
These statements reflect Apple’s commitment to ensuring that advances
in artificial intelligence are balanced and thoughtful,
focusing on delivering products that are distinguished by seamless integration between hardware,
software, and services.

 

 

 

New Agreement Between Apple and Open AI

 

Microsoft Launches Mobile Gaming Store, Challenging Apple and Google

Microsoft Launches Mobile Gaming Store, Challenging Apple and Google: Microsoft is preparing to launch
its own online store for mobile gaming accessories in July,
offering an alternative to Apple and Google’s app stores and their associated fees.

 

Content
Microsoft Store
Microsoft’s Goal
The dominance of Apple and Google
Digital Markets Act Regulation
Microsoft and the Mobile Gaming Market
Technology Giants

 

 

 

 

Microsoft Store

The store, which will operate through a browser,
will initially feature Microsoft games and offer discounts on in-game items for popular titles like Candy Crush Saga.
Xbox president Sarah Bond revealed the plan at the Bloomberg Technology Summit,
noting that the store will later include offerings from other publishers.

Bond explained that the store would be web-based instead of app-based,
ensuring accessibility across all devices and countries,
regardless of the restrictive policies of closed ecosystem stores.

 

Microsoft’s Goal

Microsoft aims to create a store that transcends device boundaries, allowing users to carry their gaming identity,
library, and rewards across multiple platforms instead of being confined to a single system, as explained by Bond.
The initiative is designed to enhance gaming experiences across consoles, computers, and mobile devices,
with “Minecraft” possibly being among the first games available on the new web store.
“This web-based store is the first step in our journey to building a trusted app store based on gaming,”
an Xbox spokesperson said in an email.

 

 

 

 

The dominance of Apple and Google

Currently, Apple and Google dominate the main app stores where developers release their games,
imposing fees of approximately 30% on sales. Phil Spencer, head of Microsoft’s gaming division,
revealed in late 2023 that the company is discussing launching its own Xbox app store with partners.

 

Digital Markets Act Regulation

The European Digital Markets Act, which came into effect this year,
allows technology companies to establish their own web stores
directly to consumers and avoid Apple and Google’s fees.
In early May, some TikTok users reported seeing links to a TikTok web store
where they could purchase TikTok coins at a discounted price.

 

Microsoft and the Mobile Gaming Market

Microsoft has been slow to enter the mobile gaming market, valued at $90 billion.

The Xbox unit will likely make significant progress following its $69 billion acquisition of Activision Blizzard,
the owner of games like Candy Crush and Call of Duty.

Since its 2012 launch, users have downloaded Candy Crush more than 5 billion times,
generating $20 billion in revenue.

 

Technology Giants

Since 2020, when Epic Games, the developer of Fortnite, launched its Project Liberty campaign,
technology giants have been competing for dominance over the future of digital storefronts for mobile games.
Epic announced a 20% discount for users purchasing Fortnite currency directly from its website.
In response, Apple and Google removed Fortnite from their app stores,
leading Epic to file lawsuits against both companies,
alleging illegal monopolistic control over their mobile phone systems.

 

Microsoft Launches Mobile Gaming Store, Challenging Apple and Google

Apple’s New iPad Pro

Apple’s New iPad Pro

Apple has announced the launch of a new version of the “iPad Pro” equipped
with artificial intelligence technologies,
aiming to boost sales of its tablet devices which saw a 9% decline last year.

 

Topic

Details

 

 

 

 

Details

The company unveiled the new device during a virtual event titled “Take Off,”
where it introduced the iPad Pro with a completely new design since 2018.
It is thinner and features an OLED Ultra Retina XDR screen for clearer images,
in addition to being equipped with the faster “M4” processor capable of efficiently performing artificial intelligence tasks. Alongside,
the “iPad Air” was also launched with a larger screen size and an “M2” processor.

 

Apple explained that the new version of the “iPad Pro,”
with a 12.9-inch screen and a thickness of 5.1 mm, is its thinnest device ever.
This move is an attempt to reverse the significant decline in tablet sales,
which recorded a 17% drop in the last quarter,
despite the company’s optimistic revenue improvement forecasts.

 

The “M4” chips are 50% faster than the previous processors in the device,
and the neural processing unit has been improved to be 60 times faster compared to the models released in 2017,
enhancing the “iPad Pro’s” capabilities in handling artificial intelligence tasks more effectively.
Apple will discuss its future plans for artificial intelligence
at the Worldwide Developers Conference in June.

 

Additionally, the devices’ screens have been upgraded to OLED,
the same technology used in the “iPhone” and “Apple Watch,”
to provide improved picture quality and enhanced colors and contrast.
For the first time, Apple offers a matte screen option for Pro model users.

 

 

 

Apple’s New iPad Pro

Huawei Profits Rise on Acquisitions of Apple and Alibaba

Huawei Profits Rise on Acquisitions of Apple and Alibaba: Huawei Technologies Co. continues its trend of strong quarterly profit growth,
based on recovering its consumer business from Apple Inc.’s iPhone
and creating its cloud division in conjunction with Alibaba Group Holding.

 

Topics

Huawei Profits

Company Development

Automotive Technology

Chinese Government Pressure on Apple

 

 

 

Huawei Profits

According to Bloomberg calculations based on financial data, the networking and electronics leader
posted a net profit of about 13.9 billion yuan ($1.9 billion) in the December quarter.
This represents an increase of more than 65% compared to last year’s figure of 8.4 billion yuan. 

The results underscore the progress made by Huawei,
which has been subject to US sanctions and export controls for years,
in addressing these challenges.
In August, the company introduced its flagship Mate 60 smartphone series,
which features a domestically designed and manufactured seven-nanometer processor,
triggering a wave of nationalistic popularity in the country.
In 2023, the consumer electronics division grew by 17.3%, reaching a revenue of 251.5 billion yuan.

 

Company Development

Huawei, which virtually disappeared from the smartphone and chip market after the US cut ties with foreign suppliers in 2019,
is now emerging as a symbol of China’s determination to counter US restrictions.
The company is building a network of chip factories to support its long-term
ambitions in electric vehicles and artificial intelligence (AI).

The company’s cloud computing business grew nearly 22% year-on-year,
marking further progress in competition with Alibaba and Tencent Holdings in the home market.
This month, the company deployed an AI-based weather forecast model at its hometown Shenzhen Meteorological Office.
The company’s chips also appear in Chinese AI manufacturers’ systems,
such as the one the Hong Kong Center for Artificial Intelligence and Robotics uses to train AI assistants for neurosurgeons.

 

Automotive Technology

Although Huawei hasn’t come as far as Xiaomi,
which launched its own brand of electric vehicles for the first time this week.
The Shenzhen-based company is making strides in bringing technology to the automotive sector.
In 2023, the industry grew by 128%, and Huawei offered Aito vehicles in its stores in China.

 

Chinese Government Pressure on Apple

The return of Huawei coincides with growing pressure on Apple from the Chinese government,
which is increasingly mandating encouraging the use of domestic devices and technologies across a wide range
of industries and sectors, including public companies.
The popularity of the Mate 60 has also fueled consumer enthusiasm for local brands.

According to official data, sales of iPhones in China fell about 33% in February from a year earlier,
exacerbating falling demand for the flagship device in the largest overseas market. However, Huawei

 warned in December about the risks posed by an unstable global industry and economy in 2024.
In the wake of the 7nm technological breakthrough, Washington officials are considering various responses,
ranging from blackmailing Huawei’s suppliers to using allies to bolster the existing semiconductor technology bloc.

 

Huawei Profits Rise on Acquisitions of Apple and Alibaba

The top 10 challenges Apple faces, from AI to China

The top 10 challenges Apple faces, from AI to China: Once the undisputed queen of the technology world, Apple is now under attack from several fronts.

 

Topics

Details

The challenges

Details


The Chinese demand for its products is waning, its lucrative App Store is facing scrutiny from European regulators,
and the once-prominent Apple car project has been scrapped.
Over its history, and particularly recently, Apple’s stock valuation has taken a sharp dive.
After reaching a historic high of $3 trillion in 2023, Apple’s market value
plummeted by hundreds of billions of dollars at the start of 2024,
allowing Microsoft – sometimes a competitor, sometimes an ally – to become the world’s most valuable tech company.


Here are the challenges Apple faces worldwide:

 

European Union pressures

The Digital Markets Act is coming into force this week, posing a new threat to Apple’s “walled garden” –
the ecosystem that encourages users of Apple devices to buy other Apple products and services.
For the first time, customers can download software from outside the App Store, a process known as sideloading.
Users will also have access to alternative payment systems and can more easily choose a new default web browser –
addressing two common complaints from developers and regulators.
Apple has long resisted such changes, arguing they would compromise its software’s user experience and security.
“Apple is forced to create technology that allows one app to install other apps, and inherently,
there is a risk,” said Phil Schiller, a senior Apple executive who now runs the App Store, in January. 

The company agreed to take a smaller commission on
App Store purchases but added some additional fees that have drawn the ire of developers.
The bigger risk for Apple is the fragmentation of a business model that generates tens of billions of US dollars annually.

Separately, the European Union imposed a fine of 1.8 billion euros ($2.6 billion Singapore dollars)
on Apple this week due to an investigation into allegations
that it hindered its competitors in music streaming, including Spotify Technology.

 

US Department of Justice lawsuit

The US Department of Justice has been working on its case against the company for five years and is now getting closer to filing suit.
Antitrust officials allege that Apple has imposed software and hardware restrictions on its iPhones and iPads,
making it difficult for competitors to compete.

Sources familiar with the matter said the lawsuit was expected by the end of March.
However, a recent federal spending agreement may reduce the funding available for antitrust officials,
potentially affecting this timing.
Apple representatives also met with the Department of Justice in February in
a final attempt to convince the agency not to proceed with the lawsuit.

 

Keeping up with the AI era

Since the launch of OpenAI’s ChatGPT in 2022,
tech companies have been racing to add more generative artificial intelligence (AI) features.
Using simple instructions, this technology can create complex texts, images, and videos.
Apple has been notably absent from this frenzy, raising concerns that it is falling behind in a crucial new field.
The company has assured investors that AI has long been integral to its software and services,
ground” in AI this year at last month’s annual meeting.
“We believe it will open transformative opportunities for our users,” he said.
Behind the scenes, Apple’s software chief, Craig Federighi has instructed his teams
to expand as many new AI competencies as viable for this year’s strolling machine updates.
The tech giant is close to completing a critical new software tool for app developers that relies on AI to speed up tasks.
However, the company needs to catch up with competitors like Samsung Electronics,
which has already unveiled phones with AI features from Alphabet’s Google.
Microsoft, OpenAI’s biggest supporter, has also introduced a steady stream of AI features.

 

 

The decline in China

Apple has been experiencing a decline in China for months, and it doesn’t seem to be improving.
iPhone sales in the country dropped by a surprising 24% during the first six weeks of this year,
according to figures from Counterpoint Research.
The entire market is declining, but Apple is now falling faster than its local competitors.
According to Counterpoint data, Vivo, based in the Chinese industrial city of Dongguan,
has emerged as the country’s leading supplier.

Apple offered rare discounts in its online store in January to stimulate demand.
Local resellers have also cut iPhone prices by up to $180.
Perhaps more concerning is the spread of restrictions on the use of foreign technology in Chinese government offices.
With increasing geopolitical tensions with the United States,

Apple’s reliance on the country – both a market and a manufacturing hub – is fraught with problems.

 

The End of Apple’s Car Project

When news broke last week that Apple was abandoning its car project, investors welcomed the development.
After all, it meant the company was no longer spending billions of U.S. dollars on a far-fetched endeavour.

However, the project’s termination ultimately leaves Apple without a significant profit source on the horizon.
Despite the challenges of building an electric vehicle, Apple could have charged $100,000 for such a product.
Even though profit margins would likely have been minimal at best, Apple is in need of a sales boost right now.
Revenue dropped by 3% in the last fiscal year, marking the company’s worst decline since 2016.

Abandoning the car project also raises concerns that Apple is playing it safe instead of boldly venturing into new categories.

 

The Niche Status of Vision Pro

Apple entered a new product category in 2024, the mixed-reality market, which the company calls “spatial computing.”
The Vision Pro headset, launched on February 2nd, impressed reviewers and attracted early adopters.
Yet, it remains a $3,500 product with a somewhat unclear purpose
. The goggles are too heavy for prolonged wear, and many software developers have hesitated to create dedicated apps.

Cook’s original vision was to sell a pair of lightweight augmented reality glasses that users could wear all day.
The technology for such a device wasn’t ready yet, so Apple had to settle for a bulkier headset that combines AR with virtual reality.

The challenge now is to make Vision Pro lighter and more affordable,
making it more appealing to the average consumer.
However, this process will take years.

 

 

Tablet Doldrums

More than a decade after the iPad’s instant success, many consumers have fallen out of love with tablet computers.
Overall sales of the devices dropped to their lowest level last year since 2011, according to research firm IDC.
This isn’t just a problem for Apple, of course; the company is the leading seller of tablets, accounting for roughly 40% of shipments.

Some consumers have shifted to larger phones or reverted to laptops,
but Apple’s failure to release a new iPad model last year didn’t help.
There’s never been a drought like this since Steve Jobs first unveiled the device in 2010.

The good news is that Apple is preparing to launch new iPad models that will introduce innovations.
An updated iPad Air will be available in two sizes for the first time,
and the Pro model will feature OLED screens, short for organic light-emitting diode.
This update is crucial for a business segment that saw a 25% drop in revenue during the holiday quarter,
the device’s biggest sales period.

 

The Legal Battle Over the Smartwatch

In a rare move, Apple recently had to halt sales of its watch versions equipped with a blood-oxygen sensor,
due to a legal dispute with medical device manufacturer Masimo.
The watches are a central part of the company’s wearables, home, and accessories division,
a sector that generated over 10% of last year’s revenue, or nearly $40 billion.

Although Apple managed to deactivate the feature and return its watches to the market,
it was an embarrassing legal setback for a company that rarely faces such issues.
The loss of the blood-oxygen measurement capability could also hinder

Apple’s efforts to add future functionalities to the watch, such as those measuring hypertension and sleep apnea.

 

Talent Drain

Executive turnover is commonplace at Apple, and the company boasts a deep bench of managers.
However, the iPhone maker has recently lost some of its most distinguished leaders, especially within its design team.
This includes Bart Andre, the company’s longest-serving senior industrial designer
and one of the most significant holders of Apple patents.
Top designers Colin Burns, Shota Aoyagi, and Peter Russell-Clarke also left towards the end of last year.

After years of departures, the team once led by the legendary Jony Ive
a group instrumental in defining Apple’s aesthetic—is almost entirely gone.
Ive’s successor as department head, Evans Hankey, left last year.
The industrial design and user interface groups now report to Jeff Williams, the company’s chief operating officer.
According to sources close to the situation,
having an operations person oversee a division dedicated to design and innovation has frustrated some staff.
Cost-cutting measures have also contributed to the discontent, they say.

 

 

 

A Tough Quarter

In light of these circumstances, Apple’s upcoming quarterly report is anticipated to be challenging for investors.

The company has indicated that the figures will not compare favourably with last year’s period.

Apple overcame the last COVID-related supply constraints in the previous quarter and enjoyed increased sales due to pent-up demand.
The company will not benefit from such an unexpected gain this time around.

Analysts predict a sales decline of about 4% for the quarter, extending until the end of this month.
This means Apple’s revenue will have decreased in five of the last six quarters.

“Apple shares, in our view, are at a crossroads,” said Rosenblatt Securities analyst Barton Crockett in a note this week.
The failure of the car project and the not-quite-ready Vision Pro have diminished the company’s allure.
The question is whether Apple’s push into generative AI can restore some of its lustre. “Apple has the potential to regain some of this shine.”

 

The top 10 challenges Apple faces, from AI to China