Apple's Worldwide Developers Conference (WWDC) in June 2026, which showcased a redesigned Siri AI and expanded Apple Intelligence platform, largely disappointed investors, resulting in a stock decline. Shares initially rose 2.5% but then fell 4.8% after the announcement, closing down 1.89% at $301.54. Analysts and investors voiced concerns that the AI strategy was merely incremental and lacked a clear path to significant revenue generation, especially when compared to competitors like Google, Meta, Amazon, and Microsoft, which are already monetizing their AI efforts. The company's stock is trading at a high 31 to 40 times earnings, leaving little room for error.
The new Siri AI, partly powered by Google's Gemini models, received a lukewarm reception due to several caveats. Crucially, Apple did not provide a firm release date, with a beta version not expected until the fall of 2026 and widespread availability likely not until 2027. Furthermore, the features will not be available in China or the European Union initially due to regulatory hurdles, limiting access for a large portion of Apple's user base. Wedbush analyst Dan Ives, who had projected a 30% upside and $15 billion in annual services revenue from a Siri reboot, had his bullish outlook undercut by these limitations.
Investors are seeking tangible growth and innovation, rather than just promises. Apple had previously delayed ambitious Apple Intelligence features after its 2024 debut and later paid $250 million to resolve claims of exaggerating the software's abilities. The market is now demanding products that demonstrably change usage, margins, or growth, and Apple's current AI offerings are seen as playing catch-up rather than leading innovation. The question remains whether these new AI capabilities will drive hardware upgrades, increased service usage, or developer engagement to justify the company's valuation.
Jamie Murray, president of Murray Wealth Group, noted that four years into the AI supercycle, Apple still lacks a coherent AI strategy. He questioned whether Apple would remain predominantly a "phone company" in the long term. Tim Cook's final WWDC as CEO further intensified the scrutiny, with a key part of his legacy tied to Apple's AI strategy, which will only solidify well after his planned retirement in September.
