Apple under pressure to prove it still has the magic at WWDC amid AI setbacks

Apple faces mounting pressure to show it hasn’t lost its innovation edge as it prepares to kick off its annual Worldwide Developers Conference (WWDC) on Monday in Silicon Valley. The tech giant is expected to unveil updates to its devices and operating systems, but all eyes are on whether it can recover from recent delays and missteps in the fast-moving world of generative AI.

A year after teasing a set of AI features branded “Apple Intelligence” — including an overhaul of the long-criticized Siri — the company failed to deliver. Siri’s upgrade was delayed, and now hopes are pinned on a fall release alongside the next iPhone.

“Apple advertised a lot of features as if they were going to be available, and it just didn’t happen,” said Emarketer senior analyst Gadjo Sevilla. “I don’t think there is going to be that much of a celebratory tone at WWDC.”

Analysts suggest the event could be a moment for Apple to restore credibility. While competitors like Microsoft, Google, and Samsung race ahead with AI integrations, Apple has been perceived as slow to adapt. “Apple seemed to underestimate the AI shift, then over-promised features, and is now racing to catch up,” wrote Gene Munster and Brian Baker of Deepwater Asset Management in a WWDC preview.

Rumors suggest Apple may announce new partnerships with Google or Perplexity to bolster its alliance with OpenAI, formed last year. But AI is not its only challenge.

Apple also faces growing tension with app developers. The company has long drawn criticism for its tight ecosystem and 30% App Store commission. “Taking 30 percent commissions from them and then failing to deliver on promises for new functionality — that’s a double black eye,” said Sevilla.

Following a lawsuit from Fortnite creator Epic Games, Apple was ordered to allow alternative payment systems in the U.S. App Store. But many developers remain frustrated. “Apple does need to give an olive branch to the developer community, which has been long-suffering,” Sevilla noted.

As AI features become more integral, Apple may also need to rethink its traditionally closed ecosystem. “Maybe with AI it’s the first time that Apple needs to rethink the open versus closed ecosystem,” said Creative Strategies analyst Carolina Milanesi.

Adding further intrigue to the WWDC stage is the news that Jony Ive — the legendary designer behind the iPhone — is working with OpenAI to develop a potential rival AI device. “It puts Apple on the defensive because the key designer for your most popular product is saying there is something better than the iPhone,” Sevilla said.

Although WWDC typically centers on software, some speculate Apple might reveal new hardware to demonstrate it’s still innovating.

Meanwhile, looming trade pressures remain in the background. Former President Donald Trump has threatened tariffs unless Apple shifts iPhone production to the U.S., a move experts say is economically unfeasible. “The whole idea of having an American-made iPhone is a pipe dream; you’d have to rewrite the rules of global economics,” Sevilla remarked.