As Apple prepares for its annual software developer conference this coming Monday, the company is navigating a challenging landscape marked by both technical setbacks and regulatory hurdles.
On the technical front, many anticipated Artificial Intelligence (AI) features that were promised at last year’s conference have been postponed until next year. Meanwhile, competitors like Alphabet’s Google and Microsoft are actively enticing developers with a plethora of new AI functionalities. Among the unfulfilled advancements are crucial enhancements to Siri, Apple’s digital assistant.
In terms of regulatory challenges, courts in both the United States and Europe are moving toward dismantling the profitable barriers surrounding Apple’s App Store. This shift comes as even some of Apple’s previous allies begin to question the fairness of the company’s fee structure.
The situation is further complicated by U.S. President Donald Trump’s threat of imposing 25 percent tariffs on Apple’s flagship product, the iPhone. Consequently, Apple’s stock has fallen over 40 percent since the beginning of the year, surpassing declines seen in Google and trailing the significant AI-driven market uptick experienced by Microsoft.
While Apple has rolled out some AI features it promised last year, including writing and image generation tools, the company continues to depend on partnerships with firms like OpenAI for certain functionalities. Reports from Bloomberg suggest that Apple is considering making its in-house AI models available to developers later this year.
However, analysts express skepticism regarding Apple’s capabilities in developing a “multi-modal” model—one that can simultaneously process images, audio, and language, potentially powering smart glasses that have garnered significant popularity for Meta Platforms. Recently, Google has indicated plans to re-enter this market in collaboration with partners.
Smart glasses, which are lighter and more affordable than Apple’s Vision Pro headset, could significantly enhance user experience by providing contextual understanding of the environment and responding to user queries.
While Apple has concentrated its efforts on the premium $3,500 (approximately Rs. 2.99 lakh) Vision Pro headset, competitors like Google and Meta have capitalized on the demand for smart glasses as a more accessible platform to showcase their AI advancements. Meta’s Ray-Bans, for instance, retail for under $400 (about Rs. 34,280).
Industry experts believe Apple must address these competitive challenges, though it seems unlikely that the company will introduce solutions in the immediate future.
“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,” said Ben Bajarin, CEO of Creative Strategies. “Apple is not positioned to do that.”
Nonetheless, Apple’s competitors are not significantly ahead in the smart glasses market. Anshel Sag, principal analyst with Moor Insights and Strategy, noted that while Meta’s Ray-Bans are still missing some features, Google has yet to release its “Gemini” model for the mass market.
“Meta has the undisputed lead, but Google is catching up fast and probably has the best-suited AI for the job,” Sag commented. “While Vision Pro is an excellent device, it functions more as a showcase for developers.”
Bob O’Donnell, CEO of TECHnalysis Research, highlighted that the widespread acceptance of smart glasses remains uncertain. He added that Apple may not be at a significant disadvantage even if it partners with technology firms like Google or OpenAI for essential AI features.
Thus far, O’Donnell observed, there is limited evidence that consumers are prioritizing AI features in their major hardware purchasing decisions.
“There’s an argument to be made that it’s acceptable for Apple to trail behind because, outside of the cutting edge, most consumers are indifferent,” O’Donnell said.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
