In a candid and highly critical assessment, Wedbush Securities analyst Dan Ives has labeled Apple’s artificial intelligence (AI) strategy a “disaster,” asserting that the company is falling dangerously behind its competitors. Speaking in an interview with Bloomberg Tech, Ives pulled no punches, stating, “It’s not happening internally and there’s no one on the Street that believes any innovation is coming out of Apple when it comes to AI organically.”
Ives’s blunt analysis comes amid growing skepticism regarding Apple’s internal AI development, particularly the shortcomings of its long-standing virtual assistant, Siri. He contends that the company’s internal efforts have failed to produce a compelling, forward-thinking AI platform that can rival the advancements seen from competitors like Microsoft, Google, Meta, and OpenAI. According to Ives, Apple’s AI platform has been “on a treadmill” while its rivals are “on a rocket ship.” This sentiment was previously echoed in a research note following Apple’s Worldwide Developers Conference (WWDC) in June, where Ives remarked that the event “felt like an episode out of ‘Back to the Future’,” noting the “barely no mention of AI” and calling it “the elephant in the room.”
Ives believes that to close the widening AI gap, Apple must pursue an aggressive strategy of acquisitions and partnerships. He has previously outlined a three-pronged approach for the tech giant: acquire the AI search engine Perplexity, recruit top AI talent, and consider integrating Google’s Gemini AI. Ives calls a deal for Perplexity a “no brainer” that could quickly boost Apple’s weak AI platform and transform Siri into a genuine “AI gateway for consumers.” The analyst’s stark warning extends to the potential impact on CEO Tim Cook’s legacy. He warns that if Apple fails to act swiftly, its leadership in the technology sector could be challenged by faster-moving rivals, despite its massive user base of over 2.4 billion iOS devices.
While Apple has publicly positioned its branded AI initiative, Apple Intelligence, as a key driver of future growth, Ives’s critique underscores the market’s lack of confidence in the company’s ability to innovate internally. Despite his harsh words, Ives has maintained an “outperform” rating on Apple with a $270 price target, citing positive developments such as recent tariff relief. The coming months will be crucial for Apple to prove its critics wrong and demonstrate that its AI strategy is not just a disaster, but a genuine path to future innovation and growth.
