Apple, Inc. (NASDAQ:AAPL) is contending with one of the biggest challenges during CEO Tim Cook‘s tenure, said Bloomberg’s Mark Gurman on Sunday.
Biggest Test: “The dawn of AI is his [Cook’s] biggest test to date,” said Gurman in the latest installment of his weekly “Power On” newsletter. Apple entered the AI game back in 2011 with the launch of Siri, its digital assistant, years ahead of others in the AI space. However, it has since trailed behind its competitors, he said.
Apple’s competition, including OpenAI and Alphabet, Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG), have become “AI superstars” and are going from strength to strength, he noted.
“Apple's priority now is not getting smoked on its home floor,” he said.
That said, Apple has some advantages of its own, such as “money, talent and a powerful platform,” he said. It will require a meaningful change to its strategy as well as some help from its AI competitors, he added.
Gurman, however, flagged one pushback for Apple. The company’s AI-related features like Siri rely mostly on processing information on the iPhone itself and lacks data collection, he said.
“Apple does both these things deliberately, part of its efforts to protect privacy and security. But they don't always make for the best experience,” he added.
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