Apple’s hardware strategy may overshadow its AI struggles through 2025

Apple is navigating AI development challenges while leveraging its core strengths in hardware and software innovation. Despite lagging behind competitors like OpenAI and Google in AI advancements, Apple’s upcoming product lineup and software redesigns position the company to weather its current AI struggles. The delayed “new Siri” may impact Apple’s competitive stance in the short term, but the company’s traditional focus on integrated hardware-software experiences remains its primary business driver, with most consumers still prioritizing these aspects over AI capabilities when making purchasing decisions.

The big picture: Apple’s AI struggles are real but may prove less consequential than critics suggest due to the company’s forthcoming hardware and software innovations.

• The company’s core business continues to thrive on hardware-software integration rather than leading-edge AI capabilities.
• For most consumers shopping for new devices, AI features remain secondary to traditional product attributes like design, performance, and battery life.

Key details: While Apple’s enhanced Siri capabilities face delays, the company is preparing significant hardware and software releases for fall 2025.

• The iPhone 17 lineup will feature an ultra-thin “iPhone 17 Air” model alongside redesigned Pro models and potentially the first iPhone Ultra with extended battery life.
• iOS 19 is expected to deliver the most substantial visual redesign since iOS 7 launched in 2013, with major changes also coming to macOS 16 and iPadOS 19.

Why this matters: Apple’s dual-pronged innovation strategy could effectively overshadow its AI development challenges in the consumer market.

• By focusing on tangible hardware improvements and visual software redesigns, Apple plays to its traditional strengths while buying time to perfect its AI implementations.
• These innovations align with what historically drives Apple’s sales: compelling, integrated products rather than standalone AI capabilities.

Where we go from here: Apple appears to be targeting a one-year timeline to resolve its Siri upgrade delays.

• The company likely aims to release its enhanced, personalized Siri experience by early 2026.
• This timeline would allow Apple to concentrate on delivering exceptional hardware and software experiences now while preparing more competitive AI offerings for the future.