Apple (AAPL) has been in full focus since it disappointed both fans and investors at the Worldwide Developers Conference (WWDC).
Tech developers and Apple enthusiasts alike typically look forward to this event every year, as it often includes the unveiling of new products or innovations. But this year, the highly anticipated event resulted in AAPL stock falling hard as investors reacted negatively to a disappointing update regarding one of Apple’s flagship products.
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When Apple software chief Craig Federighi took the stage at WWDC, he discussed the progress the company has made with Apple Intelligence, its artificial intelligence (AI) platform. But as he moved on to providing an update on Apple’s virtual assistant Siri, things quickly took a turn for the worse, as he revealed that its AI revamp isn’t coming yet.
This news disappointed both Apple investors and consumers, resulting in harsh criticism from multiple financial experts.
Apple CEO Tim Cook may need to address several complications the company has faced lately.
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Wall Street isn’t impressed by Apple’s recent updates
The past month has brought numerous complications for Apple, primarily from Capitol Hill. President Donald Trump has made it clear that he doesn’t want the company to build iPhones in India, despite CEO Tim Cook’s plans to invest $500 billion in manufacturing in the U.S. over the coming years.
Related: Analyst has blunt words on Trump’s iPhone tariff plans
Trump seems intent on strong-arming Apple into building its flagship product on U.S. soil, no matter how many experts argue that it isn’t possible, due to economic factors and a lack of labor. This list includes Wedbush Securities analyst Daniel Ives, a noted tech expert who describes Trump’s vision as a “fairy tale” with almost no chance of happening.
Since the underwhelming WWDC, though, many people have sounded off, expressing their disappointment in the company’s execution and failure to innovate. Apple’s slow approach to AI isn’t news, but now it may be causing investors to lose confidence in the consumer tech leader.
A well-known AAPL stock bull, Ives noted that the event revealed “slow and steady improvements” but still described it as “overall a yawner,” highlighting the popular consensus that its lack of exciting updates is working against the company.
He isn’t the only one to raise these points. Leading the wealth management firm Gerber Kawasaki, CEO Ross Gerber is known for his blunt takes on tech stocks. He also expressed strong disdain for Apple’s strategy.
Gerber shared a post from an X user showing a photo of the new iPhone Control Center, with a 100% emoji, indicating that he agreed with the caption “Steve Jobs would have fired everyone.”
Shortly thereafter, Gerber reiterated this point, sharing an article on the disappointing WWDC, stating, “Apple is falling far from the tree.” These posts imply that he believes Apple is departing from the legacy set by Steve Jobs, the company’s founder and the man credited with helping make the company an industry leader.
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At first glance, this may seem like wordplay designed to highlight a recent Apple news story. But given Apple’s recent decisions and the controversy they’ve sparked, Gerber’s statement could point to bigger problems that lie ahead, with the potential to compromise AAPL stock’s growth.
Apple faces an uncertain future after disappointing its fans
To understand the argument that Jobs “would have fired everyone,” it is important to note that Apple’s legacy centers around products designed with simplicity and user ease, two things that Jobs emphasized in his work leading the company.
Related: Apple WWDC underwhelms fans in a crucial upgrade
As CEO, he oversaw the company’s progress in many areas, including the rollout of the iPod and iPhone, two products that helped change the face of modern consumer technology. If Apple is indeed falling far from the tree, as Gerber suggests, it could end up disappointing its customers even more, particularly as Jobs remains a beloved figure in the minds of many people.
That said, other experts have a more positive outlook on Apple’s chances of a rebound than Ives and Gerber. Wall Street veteran Chris Versace recently laid out his team’s outlook in a note for TheStreet Pro, stating:
“Our thinking is that as the company continues to enhance Apple Intelligence and other AI efforts, it will foster an extended upgrade cycle across its massive install base. That should trigger accelerated EPS growth, especially as Apple Silicon and the higher-margin Services business account for a larger portion of its revenue mix.”
Related: Heavily shorted AI stock is rapidly climbing the Fortune 500
