Apple is facing mounting scrutiny as it grapples with delays in launching its new version of the voice assistant "Siri," which is set to be powered by generative artificial intelligence (genAI). This setback has raised eyebrows and sparked criticism regarding the company's innovation standing in the competitive AI landscape.
In a recent blog post titled "There is Something Fundamentally Wrong in Cupertino," tech analyst John Gruber, known for his enthusiasm for Apple products, expressed his frustration over the company’s failure to adopt a more skeptical stance when it announced in June 2024 that Siri would receive a significant upgrade. Gruber's critique comes at a time when many are questioning Apple's ability to keep pace with rivals in the rapidly evolving AI sector.
The anticipated upgrade was part of Apple's "Apple Intelligence" initiative aimed at enhancing Siri's capabilities beyond basic functions like checking the weather or setting alarms. Investors had high hopes that this upgrade would propel iPhone sales into a new growth cycle, prompting consumers to rush to purchase the latest models with innovative features.
However, in a surprising announcement on March 7, 2025, Apple revealed that the new version of Siri would not be released as expected. The company stated, "The matter is taking longer than we expected to provide these features, and we expect to launch it in the coming year." This delay came on the heels of Amazon’s February announcement regarding a new version of its voice assistant, Alexa, also powered by generative AI, intensifying the pressure on Apple.
Experts have differing opinions on the reasons behind Apple's struggles in embracing generative AI. Marcus Collins, a marketing professor at the University of Michigan, posits that Apple's commitment to data privacy may be hindering its ability to innovate. He noted, "Apple is not negligent in the matter of privacy," but the need for vast amounts of personal data to enhance AI performance could be complicating matters.
Collins commented to France Press that while Apple prioritizes user privacy, the company may need to leverage user data more effectively to develop superior AI technologies. Technology analyst Avi Greengart also weighed in, stating, "The extensive promotion of Apple's artificial intelligence with the iPhone 16 device represents a turning point, because most of what is promised in Apple's artificial intelligence is not available in the iPhone 16."
Despite these challenges, some analysts caution that even if Google's AI features on Android devices are currently more advanced, users may not notice significant differences in their daily interactions with their devices. Greengart remarked, "Even the best AI applications on phones today do not fundamentally change how you use your phone," suggesting that Apple still has time to catch up.
However, critics argue that Apple is overly reliant on its past successes and the widespread popularity of its iPhone products. This criticism has been compounded by the lukewarm reception of the Vision Pro, Apple's expensive virtual reality device, which failed to achieve notable success since its launch in 2024.
Despite the recent negative perceptions surrounding Apple, the company remains the most valuable in the world, with its stock price rising by approximately 30% compared to the previous year. Apple reported staggering revenues of $124.3 billion in the last quarter of the previous year, even if sales growth fell short of market expectations.
Adding to Apple's challenges, the French Competition Authority recently imposed a fine of 150 million euros on the company due to its anti-competitive practices associated with the App Tracking Transparency (ATT) feature. Announced on March 31, 2025, the penalty stems from allegations that Apple abused its dominant position in the mobile advertising ecosystem by enforcing stricter tracking policies on third-party applications compared to its own services.
While Apple asserts that its ATT feature is designed to protect user privacy, the French regulators found that its implementation disproportionately harms smaller developers and advertisers who rely on access to third-party data. The regulatory authority stated, "This solution gives Apple an unfair competitive advantage in the digital advertising market," highlighting the complexities of balancing privacy with fair competition.
Despite the ruling, Apple has publicly disagreed with the decision and has no plans to alter its tracking policies. The company maintains that ATT is a fair tool that provides users with more control over their data and applies consistent treatment to all developers. However, the refusal to implement changes could exacerbate tensions with European authorities, who are already ramping up litigation and stricter regulations under the Digital Markets Act (DMA).
This case underscores the growing tension between privacy and competition, as European regulators warn that privacy measures cannot be weaponized to reinforce dominant market positions. When a privacy feature inadvertently undermines competition, it raises serious concerns about compliance with competition laws.
As the digital advertising market continues to evolve, with Apple, Google, and Meta at the forefront, the regulatory landscape is becoming increasingly scrutinized. France has emerged as a strong voice within the European Union, condemning practices that hinder fair access to data.
Apple now faces the challenge of proving that its privacy policies do not stifle innovation among third-party developers. The recent ruling serves as a significant precedent in European tech regulation, emphasizing that user privacy advocacy cannot be a pretext for restricting competition.
Ultimately, Apple must navigate its dual role as a privacy champion and a dominant player in the digital ecosystem. The message is clear: while privacy is essential, it should not come with preferential treatment for the company itself. If data protection becomes a selective barrier, it undermines not only competition but also the legitimacy of privacy discourse.
