CUPERTINO, Calif. 鈥 After stumbling out of the starting gate in Big Tech鈥檚 pivotal race to capitalize on artificial intelligence, Apple tried to regain its footing Monday at its annual Worldwide Developers Conference.
The presummer rite, which attracted thousands of developers from almost 60 countries to Apple鈥檚 Silicon Valley headquarters, was more subdued than the feverish anticipation that surrounded the event during the previous two years.
In 2023, Apple unveiled a mixed-reality headset that has been little more than a niche product, and last year WWDC trumpeted its first major foray into the AI craze with an array of new features highlighted by the promise of a smarter and more versatile version of its virtual assistant, Siri.
Apple intended the planned Siri upgrade to herald its long-awaited attempt to become a major player in the AI craze after getting a late start in a phenomenon that so far is largely led by OpenAI, Google, Microsoft and an array of cutting-edge startups.
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鈥淭his work needed more time to reach our high-quality bar,鈥 Craig Federighi, Apple鈥檚 top software executive, said Monday at the outset of the conference.
Attendees watch a presentation during an event on the Apple campus in Cupertino, Calif., Monday, June 9, 2025. (AP Photo/Jeff Chiu)
The showcase unfolded amid nagging questions about whether Apple lost some of the mystique and innovative drive that turned it into a tech trendsetter during its nearly 50-year history.
Instead of making a big splash as it did with the Vision Pro headset and its AI suite, Apple focused this year on an overhaul of its software that the company is billing as the most extensive overhaul of the iPhone鈥檚 operating system in a decade.
Federighi described the changes as Apple鈥檚 attempt to make its software more compatible with the increasingly sophisticated computer chips that have been powering its products while also making it easier to toggle between the iPhone, iPad, and Mac.
Even though it might look like Apple is becoming a technological laggard, Forrester Research analyst Thomas Husson contends the company still has ample time to catch up in an AI race that鈥檚 鈥渕ore of a marathon, than a sprint. It will force Apple to evolve its operating systems.鈥
Besides redesigning its software, Apple will switch to a method that automakers used to telegraph their latest car models by linking the new operating systems to the year after they first arrive at dealerships.
Apple CEO Tim Cook, left, is joined by Craig Federighi, senior vice president of software engineering, during an event on the Apple campus in Cupertino, Calif., Monday, June 9, 2025. (AP Photo/Jeff Chiu)
That means the next version of the iPhone operating system due out this autumn will be known as iOS 26 instead of iOS 19 鈥 as it would be under the previous naming approach that has been used since the device鈥檚 2007 debut.
The iOS 26 upgrade is expected to be released in September about the same time Apple traditionally rolls out the next iPhone models.
While some of the new AI tricks compatible with the latest iPhones began rolling out late last year as part of free software updates, Apple still hasn鈥檛 been able to soup up Siri in the ways that it touted at last year鈥檚 conference. The delays became so glaring that a chastened Apple retreated from promoting Siri in its AI marketing campaigns this year.
鈥淚t鈥檚 just taking a bit longer than we thought,鈥 Apple CEO Tim Cook told analysts last month when asked about the company鈥檚 headaches with Siri. 鈥淏ut we are making progress, and we鈥檙e extremely excited to get the more personal Siri features out there.鈥
While Apple struggled to make AI that meets its standards, the gap separating it from other tech powerhouses is widening.
Google keeps packing more AI into its Pixel smartphone lineup while introducing more of the technology into its search engine to dramatically change the way it works. Samsung, Apple鈥檚 biggest smartphone rival, is also leaning heavily into AI.
Meanwhile, ChatGPT recently struck a deal that will bring former Apple design guru Jony Ive into the fold to work on a new device expected to compete against the iPhone.
The Apple logo is displayed Jan. 3, 2019,聽at an Apple store in New York.聽
Besides grappling with innovation challenges, Apple also faces regulatory threats that could siphon away billions of dollars in revenue that help finance its research and development.
A federal judge is weighing whether proposed countermeasures to Google鈥檚 illegal monopoly in search should include a ban on long-running deals worth $20 billion annually to Apple while another federal judge recently banned the company from collecting commission on in-app transactions processed outside its once-exclusive payment system.
On top of all that, Apple is caught in the crosshairs of President Donald Trump鈥檚 trade war with China, a key manufacturing hub for the Cupertino, California, company.
鈥淭he trade war and uncertainty linked to the tariff policy is of much more concern today for Apple鈥檚 business than the perception that Apple is lagging behind on AI innovation,鈥 Husson said.
The multi-dimensional gauntlet facing Apple spooked investors, causing the company鈥檚 stock price to plunge by nearly 20% this year 鈥 a decline that erased $750 billion in shareholder wealth. After beginning the year as the most valuable company in the world, Apple now ranks third behind longtime rival Microsoft, another AI leader, and AI chipmaker Nvidia.
