Apple Faces Bigger Problems Than Tariffs or iPhone Sales

​Apple’s latest challenge isn’t tariffs, slowing iPhone sales, or competition—it’s credibility. The tech giant is facing backlash after overpromising AI-powered Siri features that now appear to be far from ready.

Analysts worry that Apple’s failure to deliver on its AI ambitions could shake consumer confidence, delaying upgrades and hurting future iPhone sales.

Apple’s AI Hype Backfires
At its WWDC event in June 2024, Apple teased a smarter, AI-powered Siri as a key feature of its next-gen iPhones. The assistant was supposed to seamlessly integrate information—letting users ask Siri to update a contact’s address or recall past conversations.

But now, it turns out those features won’t be ready anytime soon. Prominent Apple blogger John Gruber didn’t hold back in his criticism, calling the move a huge misstep that has damaged Apple’s credibility.

“‘Damaged’ is too soft a word,” Gruber wrote. “Apple squandered its credibility by advertising features that weren’t even close to being functional.”.

What Went Wrong?
Apple promoted its AI-driven Siri across multiple iPhone 16 commercials, but reports now suggest that these features won’t be ready until months after the iPhone 17 launch.

Gruber called out Apple’s leadership, questioning who decided to promote features that were unfinished and undemonstrable. He compared it to the failed MobileMe launch in 2008, when Steve Jobs publicly scolded executives for releasing a broken product.

Modern Apple, Gruber argues, used to announce only working features—not vague promises.

Investors Are Getting Nervous
Apple’s stock has dropped 10.7 percent in just one week, making it the worst-performing stock in the "Magnificent Seven"—even surpassing Tesla’s recent slump.

The delay in AI-powered Siri has analysts questioning Apple’s ability to compete in the AI space, especially with Microsoft, Google, and OpenAI rapidly advancing their AI ecosystems.

Despite the selloff, Apple bulls aren’t panicking yet. Wedbush analyst Daniel Ives still believes in Apple’s AI strategy, arguing that its long-term vision for AI will transform the company over the next few years.

What’s Next for Apple?
Apple’s AI setback may be temporary, but credibility is hard to rebuild. If the company can’t prove it’s serious about AI at its next developer event, investors and consumers may start looking elsewhere.

For now, Apple’s biggest challenge isn’t tariffs or sales—it’s regaining the trust it just lost.





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