Apple faces great pressure

Analysts are calling on Apple to change its business strategy to revive its struggling AI division.

Apple Intelligence advertising screen on iPhone 16. Photo: Bloomberg .

Concerned about its falling stock and lagging AI efforts, investors are calling on Apple to abandon its longstanding tradition, aggressively hire talent and make acquisitions to better compete.

“Apple has not historically done large-scale mergers and acquisitions,” Bloomberg quoted analyst Atif Malik from Citigroup.

Malik noted that Apple’s last major deal was in 2014. Still, he argued that investors “would be more optimistic” if Apple acquired, or invested heavily in, reputable AI companies.

Apple needs to break tradition

Apple shares are down 16% this year, in contrast to companies that invest heavily in AI, such as Meta. While the company faces other issues, including tariff implications and legal troubles, its less-than-impressive AI features have added to investor concerns.

Apple has long avoided making major acquisitions, instead focusing on developing its own products. Its biggest acquisition came in 2014, when the company bought Beats for $3 billion .

There are some signs that Apple is indeed looking to break with tradition. According to Bloomberg , company executives have discussed internally acquiring the startup Perplexity AI.

If the rumors are true, the move could bolster Apple’s efforts to develop an AI-powered search engine. Perplexity recently closed its next round of funding at a valuation of $14 billion .

Stock performance of Meta, Apple and the Nasdaq 100 index from December 2024. Photo: Bloomberg .

Wedbush analyst Dan Ives stressed that acquiring Perplexity is a “no-brainer” for Apple. He said that even if Apple spent $30 billion , the figure was “just a drop in the bucket” compared to the revenue opportunity Apple could gain from AI.

Since the launch of the Apple Intelligence toolkit last year, Apple has been less than impressed with the features it rolled out, including the improvements announced at WWDC 2025 in June.

Apple is reportedly considering using an external AI model for the new version of Siri, instead of using its own in-house developed model.

Kevin Cook, equity strategist at Zacks Investment Research, said Apple should take a page from Meta's approach to hiring AI talent, but shouldn't make too big a change.

“Just focusing on recruiting AI talent is enough. Apple certainly faces many challenges, but it is different from Google, a company that can easily be overtaken by competitors if it falls behind,” Cook said.

"Apple cannot develop AI by itself"

With Meta, CEO Mark Zuckerberg is not afraid to spend money on AI ambitions. In early July, Bloomberg reported that Meta recruited an engineer who used to run Apple's AI team with a salary of hundreds of millions of dollars for several years, while Apple made almost no move to retain him.

Of course, Apple has the resources to pursue similar strategies. As of the end of March, the company had $133 billion in cash and marketable securities, nearly double the amount of cash on Meta’s balance sheet.

Apple itself is also undergoing major changes. Chief Operating Officer Jeff Williams is retiring after more than 10 years in the role. Chief Financial Officer Luca Maestri stepped down last year.

CEO Tim Cook delivered the opening remarks at WWDC 2025 in June. Photo: Bloomberg .

Analysts believe CEO Tim Cook will remain in office for the next few years, despite Apple preparing to reshuffle its leadership.

Analysts at LightShed Partners said a major adjustment “is exactly what Apple needs right now,” including the possibility of Cook being replaced as CEO.

“Missing out on the AI race could change the company’s long-term operating trajectory and growth potential,” analysts Walter Piecyk and Joe Galone said.

While not calling for a change in senior management, analyst Paul Meeks of Water Tower Research agrees that Apple needs to make a “bold move.”

“A major deal not only helps the company in the AI space, but also demonstrates a willingness to change culture and adjust strategy. They can’t develop AI on their own,” Meeks stressed.

Source: https://znews.vn/apple-doi-mat-ap-luc-lon-post1568693.html