Despite these challenges, Apple is known for its strategy of improving existing products rather than rushing to be the first to market. The company is reportedly working on ways to embed gen AI in its devices, bolstering its ecosystem. It has been using homemade chip technology called neural engines since 2017 to handle machine-learning and AI functions. Furthermore, Apple's Vision Pro, a mixed-reality headset, could potentially be a gateway to gen AI. However, the company faces regulatory challenges in the EU and competition from Huawei in China.
Key takeaways:
- Apple is facing challenges on multiple fronts including antitrust issues, competition from Asian rivals, and questions about its ability to innovate and grow.
- Despite a decrease in its market value and a levelling off in iPhone sales, Apple is not rushing to join the hype around generative artificial intelligence (gen AI), instead choosing to take its time to improve existing technology.
- Apple is not competing with other tech giants to run cloud-computing platforms with large language models (LLMs) for gen-AI apps, but is instead working on ways to embed gen AI in its own devices.
- Despite regulatory challenges in the EU and competition from Huawei in China, Apple is likely to continue working on gen-AI products that do not leave egg on its face, with the vast sums needed to train AI models favouring deep-pocketed incumbents over scrappy upstarts.