Tim Cook emphasizes AI as Apple's next major frontier
What's the story
In a rare all-hands meeting, Apple CEO Tim Cook assured employees that the tech giant is fully committed to artificial intelligence (AI). He emphasized the importance of AI by comparing its significance to that of the internet. "Apple must do this," he said. "Apple will do this. This is sort of ours to grab. We will make the investment to do it."
AI strategy
Cook draws parallels with Apple's previous tech entries
Despite concerns over its slow entry into the AI space, Cook remains optimistic about Apple's growing suite of AI tools, collectively called Apple Intelligence. He drew parallels with Apple's previous late but successful entries into tech categories, such as the PC before Mac and smartphone before iPhone. "We've rarely been first," Cook said during the hour-long meeting. "There was a PC before the Mac; there was a smartphone before the iPhone."
Market response
Apple's record-breaking quarterly revenue and stock performance
The all-hands meeting was held a day after Apple announced record-breaking quarterly revenue, driven by strong Mac sales and subscription services. However, despite the positive earnings report, Apple's stock price fell on Friday due to concerns over potential tariffs' impact on the economy. The company said during its earnings call that tariffs imposed by President Donald Trump's administration could cost it $1.1 billion in the next quarter.
Future developments
Update on Siri and other upcoming products
Apple's software chief Craig Federighi addressed the delay of the smarter Siri, a key part of Apple's AI-infused future. He explained that Apple had initially planned a hybrid Siri using two systems but realized it wouldn't meet Apple's quality standards. The company is now working on a new Siri architecture expected to launch in 2026. Cook also expressed enthusiasm about Apple's upcoming products, which reportedly include the first folding iPhone, smart home devices, smart glasses, and more.