Kristina Roberts
Apple is gearing up for its annual Worldwide Developers Conference (WWDC), where the company showcases its latest software innovations. This year, however, the tech giant faces significant challenges, both in artificial intelligence (AI) advancements and regulatory pressures. While rivals like Google and Microsoft push forward with new AI tools, Apple is struggling to deliver on some of its promises from last year. At the same time, legal battles threaten the company’s tight control over its App Store, a major source of revenue.
One of Apple’s biggest hurdles is AI. Last year, the company announced exciting upgrades to Siri and other AI-driven features, but many of these improvements have been delayed until next year. Meanwhile, competitors like Google and Microsoft continue to roll out advanced AI tools, leaving Apple playing catch-up. Apple has introduced some AI features, such as writing and image-generation tools, but it still relies on partners like OpenAI, the creator of ChatGPT, for certain capabilities. Reports suggest Apple may soon allow developers to use its in-house AI models, but experts doubt the company has a fully developed “multi-modal” AI system—one that can process images, sound, and language simultaneously.
This kind of AI is crucial for smart glasses, a product category that has gained popularity thanks to companies like Meta and Google. Unlike Apple’s expensive Vision Pro headset, which costs $3,500, smart glasses from Meta and Google are much cheaper, priced under $400. These glasses use AI to help users understand their surroundings by analyzing what they see and answering questions in real time. While Apple has focused on high-end virtual reality headsets, its competitors are making AI-powered smart glasses more accessible. Analysts believe Apple needs to respond to this trend but don’t expect a major announcement at this year’s WWDC.
Ben Bajarin, CEO of Creative Strategies, explains the appeal of smart glasses: “I’m not trying to replace my phone—this is a complementary thing that gives me more world context because it’s got a camera, and it sees what I see, and I can talk to it in natural language. Apple is not positioned to do that.” This highlights a gap in Apple’s product lineup, as the company has yet to introduce a lightweight, AI-powered wearable that competes with Meta’s Ray-Bans or Google’s upcoming smart glasses.
Still, Apple’s rivals aren’t without their own struggles. Anshel Sag, a principal analyst at Moor Insights & Strategy, points out that Meta’s Ray-Bans still lack some key features, and Google hasn’t yet integrated its powerful Gemini AI into a mass-market product. “Meta has the undisputed lead, but Google is catching up fast and probably has the best-suited AI for the job,” Sag said. “Vision Pro is great, but it’s a showroom product that developers can use.” This suggests that while Apple’s high-end headset impresses tech enthusiasts, it may not be practical for everyday consumers.
Beyond AI, Apple is also dealing with growing regulatory pressure. Courts in the US and Europe are questioning the company’s App Store policies, particularly its fees for developers. Some former supporters of Apple’s strict control over app distribution are now arguing that the fees are unfair. If new regulations force Apple to lower its fees or allow alternative app stores, it could significantly impact the company’s profits.
Adding to Apple’s challenges, former US President Donald Trump has threatened to impose heavy tariffs on iPhones, which could make the devices more expensive for consumers. These combined pressures have affected Apple’s stock performance, with shares dropping more than 40% since the beginning of the year—a steeper decline than Google and far behind Microsoft’s AI-driven growth.
Despite these obstacles, Apple remains a dominant force in the tech industry. The company has a history of entering markets later than its competitors but still succeeding with polished, user-friendly products. If Apple can refine its AI strategy and adapt to regulatory changes, it may yet regain its momentum. For now, all eyes are on WWDC, where Apple’s executives will outline their vision for the future—one that must address both innovation and increasing scrutiny.
As the conference unfolds, developers and consumers alike will be watching closely to see how Apple responds to these challenges. Will the company unveil groundbreaking AI tools, or will it fall further behind? Can it maintain its App Store dominance in the face of legal battles? The answers to these questions will shape Apple’s path in the coming years, determining whether it can stay ahead in an ever-changing tech landscape.
For now, Apple’s biggest test is balancing innovation with real-world pressures. The company must prove it can deliver on its AI promises while navigating complex regulations and fierce competition. If successful, it could reinforce its position as a leader in technology. If not, rivals like Google and Meta may seize the opportunity to redefine the future of smart devices. The stakes are high, and the world is watching.
