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Apple\u2019s annual Worldwide Developers Conference (WWDC) in June left some of Wall Street\u2019s most prominent voices feeling oddly nostalgic\u2014and not in a good way. According to Dan Ives, a top tech analyst at Wedbush Securities known for his prescient, albeit oft-times bullish, calls on Silicon Valley\u2019s giants, was bearish about Apple. The atmosphere at this year\u2019s WWDC, he wrote in a July 30 research note, \u201cfelt like an episode out of \u2018Back to the Future\u2019\u201d\u2014especially when it came to Apple\u2019s treatment of artificial intelligence.<\/p>\n
While fellow tech titans are racing to put AI front and center, Apple\u2019s WWDC presentation was notable for its near silence on the subject. \u201cBarely no mention of AI,\u201d Ives remarked in his latest report, calling it \u201cthe elephant in the room.\u201d He noted this was a stark contrast to the fever pitch seen at rival developer events. Analysts, investors, and developers tuned in with expectations of a grand reveal that would clarify Apple\u2019s ambitions for the \u201cAI Revolution.\u201d Instead, they watched as the company leaned on traditional strengths\u2014hardware updates and a strong services story\u2014leaving the future of Siri and Apple\u2019s broader AI roadmap conspicuously vague.<\/p>\n
This omission has become a growing concern for analysts like Ives, who believe Apple is at a crossroads. \u201cIt\u2019s becoming crystal clear that any innovation around AI at Apple is not coming from inside the walls of Apple Park,\u201d he wrote, referencing the company\u2019s famed Cupertino headquarters. While Apple has historically prided itself on building transformative technology in-house, Ives argues those days may be over.<\/p>\n
Time for an acquisition?<\/p>\n
\u201cThe time has come\u201d for a big acquisition, he wrote, singling out Perplexity as a \u201cno brainer\u201d acquisition target\u2014even if it costs upwards of $40 billion. According to Ives, such a move could instantly supercharge Apple\u2019s lagging AI platform and help reposition Siri as the \u201cnext AI gateway for consumers.\u201d<\/p>\n
To date, Apple\u2019s biggest acquisition remains Beats, a $3 billion deal in 2014\u2014an order of magnitude smaller than the types of deals transforming the AI sector today. Apple\u2019s traditionally cautious approach to M&A, Ives suggests, may be holding it back at a time when speed is everything. \u201cAI technology on the enterprise and consumer landscape is happening at such a rapid pace Apple will not be able to catch up with an internally built solution,\u201d he warned. The stakes, Ives estimates, are high: A successful AI monetization strategy could add as much as $75 per share to Apple\u2019s valuation. \u201cWe believe [CEO Tim] Cook needs to rip the band-aid off and finally do an M&A deal,\u201d he wrote.<\/p>\n
The muted AI narrative at WWDC comes during a broader period of transition for Apple. While demand for iPhones\u2014a bellwether for the company\u2014remains globally robust, with particular improvement in China after a year of tough competition, the company faces mounting headwinds. Trade tensions, evolving supply chain risks, and increasing pressure from lower-priced rivals in Asia have stressed Apple\u2019s core markets.<\/p>\n
For now, analysts are keeping faith with Apple\u2019s near-term performance. Wedbush maintains its \u201cOutperform\u201d rating, with a 12-month price target of $270 per share, citing expected growth driven by the upcoming iPhone 17 and continued strength in services. The stock was trading at $211.27 at the time of writing. But Ives is steadfast: the next chapter\u2014centered on AI\u2014will define Apple\u2019s future.<\/p>\n
Cook\u2019s extraordinary record\u2014and mounting criticism<\/p>\n
To be clear, Cook has had a legendary run after succeeding Steve Jobs in 2011. Over the ensuing 14 years, Cook has led Apple through a period of extraordinary shareholder value creation\u2014transforming a $300 billion company into a $3.2 trillion titan. Under his stewardship, Apple refined its operational efficiency, reinvigorated its services division, and delivered massive profits through established hits like the iPhone, AirPods, and Apple Watch. But as Fortune\u2018s Geoff Colvin reported, \u201csuddenly his weaknesses are on display in the AI era.\u201d<\/p>\n
A chorus of analysts has joined Ives in arguing that Cook\u2019s operational excellence and supply-chain mastery may not be enough to win the future, as the AI era upends the tech industry\u2019s priorities. The first half of 2025, furthermore, has been bruising. The company\u2019s stock is down about 16%, while rivals like Microsoft and Alphabet have soared on aggressive bets in generative AI.\u00a0Apple\u2019s \u201cApple Intelligence\u201d initiative, which was supposed to position Siri and other features at the forefront of consumer AI, has failed to capture investor or developer enthusiasm.\u00a0Meanwhile, key AI executives have left: Apple\u2019s top AI executive Ruoming Pang recently defected to Meta, just weeks after another top Apple AI scientist, Tom Gunter, resigned.\u00a0Simultaneously, Chief Operating Officer Jeff Williams\u2014a long-touted Cook successor\u2014is set to retire, forcing a broader management overhaul.<\/p>\n
These departures have intensified debate about Apple\u2019s innovation pipeline. Critics argue that under Cook, Apple has not delivered any genuinely transformative new product since the Jobs era, with most recent hits\u2014like AirPods or the Apple Watch\u2014refining rather than redefining product categories.\u00a0The risk, analysts warn, is existential: If smart devices shift into new AI-centric paradigms and Apple fails to respond forcefully, the company\u2019s platform risks obsolescence.<\/p>\n
Research firm LightShed Partners rocked investors and the tech press in July by calling for a regime change. Analysts Walter Piecyk and Joe Galone insisted Apple needs a product-focused CEO, not one centered on logistics. They warned Apple\u2019s lack of compelling innovation in AI and the relatively stagnant progression of Siri could irreversibly erode its competitive edge as Google, Microsoft, and OpenAI press forward.\u00a0<\/p>\n
Cook\u2019s defenders argue Apple has a unique position: its platform lock-in gives it time to execute a measured AI response. And historically the company has rarely been first-mover\u2014its success derives from perfecting existing technologies, not inventing them.\u00a0Nevertheless, with AI\u2019s foundational impact compared to the internet or electricity, allowing the competition to set the pace could be dangerous.<\/p>\n
Ives is still backing Cook, with reservations. \u201cPatience is wearing thin among investors and importantly developers,\u201d he warned. The coming months, particularly as Apple\u2019s product cycle heats up in September and beyond, may prove pivotal\u2014not just for the company\u2019s balance sheet. Ives said Wedbush believes Cook will be Apple CEO for another five years, at least, but there are mounting challenges, from the \u201ctariff iPhone quagmire,\u201d with Apple\u2019s manufacturing operations in China directly exposed to trade uncertainty, to President Donald Trump\u2019s displeasure with India as an alternate supply chain solution, to \u201cmissing the AI foundational strategy.\u201d He concluded, \u201cthis chapter will define Cook\u2019s legacy.\u201d<\/p>\n
\u201cIt\u2019s time for Cook and Cupertino to face the new reality of this quickly morphing AI-driven tech landscape,\u201d Ives wrote. \u201cBecause if they do not change, it will be a historic strategic black eye for Apple in our view.\u201d<\/p>\n
For this story,\u00a0Fortune\u00a0used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.\u00a0<\/p>\n
#Dan #Ives #slams #Apples #tech #showcase #episode #Future #turns #heat #Tim #Cook #elephant #room<\/p>\n","protected":false},"excerpt":{"rendered":"
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