Despite Siri AI setback, Apple sees growth in services, iPad, and other AI features

Apple CEO Tim Cook has publicly addressed one of the company’s most significant recent challenges: the delay of its enhanced Siri features originally promised as part of the Apple Intelligence rollout. Despite this setback, Apple reported modest revenue growth, with iPhone sales up 2% year-over-year and overall sales increasing 5%, bolstered by strong performance in services and iPad categories. The acknowledgment of AI development challenges from one of tech’s most powerful companies highlights the complexity of implementing advanced AI features even for organizations with vast resources.

The big picture: Apple has postponed its promised Siri 2.0 upgrade to iOS 19, with CEO Tim Cook acknowledging the delay during the company’s quarterly earnings call with analysts.

• Cook stated that “with regard to the more personal Siri features we announced, we need more time to complete our work on these features so they meet our high-quality bar.”
• The upgraded Siri was initially unveiled in June 2023 as a cornerstone of Apple’s Apple Intelligence initiative but has since been limited to minor enhancements rather than the substantial overhaul promised.

What they’re saying: When pressed by analysts about specific factors contributing to the delay, Cook declined to provide details, simply noting “it’s just taking a bit longer than we thought.”

• This marks the second public acknowledgment of the delay, following a statement in March that the Siri 2.0 features were taking longer than anticipated.
• Cook emphasized that Apple is “making progress” and looks “forward to getting these features into customers hands.”

Behind the numbers: Despite the Siri setback, Apple reported positive financial performance for the quarter ending March 29.

• Overall sales increased 5% year-over-year to $95.4 billion, with services and iPad categories achieving double-digit revenue growth.
• iPhone sales rose by a modest 2% compared to the same period last year, reaching $46.8 billion, bolstered in part by the launch of the iPhone 16e.

Key details: Cook highlighted several Apple Intelligence features that have successfully launched with iOS 18, showcasing the company’s partial progress in its AI strategy.

• Among the features mentioned were Writing Tools, ChatGPT integration, Genmoji, Image Playground, Image Wand, Clean Up, Visual Intelligence, AI-powered photo search, smart replies, and priority notifications.
• These successfully deployed features demonstrate Apple’s continued commitment to AI integration despite the challenges with Siri enhancements.