Analyst Explains Apple’s (AAPL) ‘Largest Threat’ – ‘Siri is a Mess’

We just lately printed High 10 Trending Shares to Watch Forward of Nvidia Earnings. Apple Inc (NASDAQ:AAPL) is among the high trending shares to look at forward of Nvidia earnings.

Daniel Newman, Futurum CEO, mentioned in a CNBC program final month that there’s lots of uncertainty amongst buyers about Apple Inc (NASDAQ:AAPL) future amid the corporate’s lack of progress on the subject of AI. Requested what the most important threat for Apple Inc (NASDAQ:AAPL) is, Newman pointed to the corporate’s AI technique:

“The most important threat is that they honestly don’t get this pivot to AI appropriate. They haven’t gotten infrastructure. They don’t have their very own, you understand, stack when it comes to their growth. They don’t have a instrument. You’ve heard lots of people come out. I got here out six months in the past and mentioned to purchase Perplexity. And I wish to be very clear, Perplexity doesn’t remedy all of Apple’s AI wo in any respect. It’s an intent factor. It’s simply exhibiting that Apple Inc (NASDAQ:AAPL) needs to construct a product proper now. You realize, you attempt to use Siri and Siri’s a large number. I feel we’ve talked about this earlier than on the present and it needs to take you to OpenAI. What does it say when an organization with Apple Inc (NASDAQ:AAPL) steadiness sheets that spent, what, 600 plus billion {dollars} on buybacks can not make the funding, can not lure in the kind of researchers and construct the sort of know-how that has made it the corporate that it’s at the moment? I feel it comes with actual threat.”

Photograph by Alexandr Bormotin on Unsplash

Apple shares are up 6% over the previous month. The corporate made headlines after the most recent studies that it has determined to make use of Google Gemini to energy Siri within the subsequent improve. Apple’s quarterly outcomes final month sparked new hope amongst buyers. The iPhone maker’s income rose 9.6% 12 months over 12 months, with providers income climbing 13.26% and product gross sales rising 8.20%. iPhone gross sales have been up 13% 12 months over 12 months, rebounding sharply from 1.91% development within the prior quarter, whereas Better China gross sales improved to $15.369 billion, a 4.35% improve.

Sands Capital Know-how Innovators Fund said the next concerning Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:

“We exited Apple Inc. (NASDAQ:AAPL) primarily based on a number of components that we view as threats to its capability to maintain above-average earnings development. Know-how Innovators initiated a place in Apple in June 2024 primarily based on the view that the mixture of Apple’s built-in {hardware}, voice-activated assistant, and client information positioned the enterprise nicely to ship synthetic intelligence (AI)-enabled customized assistant capabilities and to gather tolls on the growth of AI enabled purposes that we anticipated to scale alongside computing energy. Since then, we see restricted proof that Apple has successfully leveraged AI to speed up machine substitute cycles or reignite Providers development by enhancing developer-facing AI performance.

Whereas we acknowledge the potential of AAPL as an funding, our conviction lies within the perception that some AI shares maintain better promise for delivering larger returns and have restricted draw back threat. In case you are on the lookout for a particularly low cost AI inventory that can also be a significant beneficiary of Trump tariffs and onshoring, see our free report on the greatest short-term AI inventory.