As Apple Inc. AAPL prepares to unveil its new iPhone 17 lineup at Tuesday’s “Awe Dropping” occasion, investor Peter Andersen is criticizing the corporate’s weak synthetic intelligence technique, calling Siri’s efficiency “terrible” and its lack of innovation “fairly a humiliation.”
Apple Faces Criticism Forward Of iPhone 17 Occasion
On CNBC’s Energy Lunch, Andersen, founder and chief funding officer of Andersen Capital Administration, stated Apple is focusing too closely on {hardware} whereas ignoring its shortcomings in AI.
Tuesday’s replace “appears to me type of a head pretend and ignoring the elephant within the room,” Andersen stated. “Siri’s outcomes have been terrible, and Apple intelligence growth has actually been missing. So it is fairly a humiliation, when it comes to AI efforts, however they’re making an attempt to re-shift that focus onto their {hardware} growth.”
Apple shares dipped about 0.76% throughout Monday’s common buying and selling session and dipped one other 0.0084% in after-hours, in response to Benzinga Professional.
In the meantime, traders await particulars of the brand new iPhone lineup, which is able to debut on the firm’s Cupertino campus on Sept. 9 at 10 a.m. PT.
See Additionally: Apple iPhone 17 Occasion: Extremely-Skinny iPhone 17 Air, Apple Watch 11, AirPods Professional 3 And Extra Anticipated On ‘Awe Dropping’ Day
{Hardware} Upgrades No Lengthy-Time period Repair
Andersen stated Apple’s anticipated {hardware} reveals—together with the brand new ultra-thin iPhone 17 Air, digital camera upgrades and new coloration choices—could excite customers within the brief time period however fail to deal with the corporate’s long-term progress challenges.
“They are going to try to focus the actual fact of recent penetration and that the {hardware} presents new improvements,” he stated. “However in the long term, I do actually suppose they need to concentrate on the software program growth.”
Andersen argued that with out significant AI breakthroughs, Apple dangers shedding floor to rivals resembling Microsoft Corp. MSFT, Alphabet Inc. GOOG GOOGL and Meta Platforms Inc. META, which have moved quicker in integrating superior AI instruments.
Siri’s Struggles In Highlight
The investor additionally pointed to Siri as one in all Apple’s most important shortcomings in AI, noting that the corporate’s developments on this space have largely been incremental.
He stated that critics can argue that, past minor upgrades—resembling growing the variety of digital camera lenses—Apple has struggled to ship significant innovation.
He added that one workaround is just downloading OpenAI’s ChatGPT onto an iPhone, however that resolution underscores Apple’s lag in native AI growth.
“I do not suppose that that is a long-term resolution,” Andersen stated.
Analysts Break up On Apple’s Future
Different analysts have additionally echoed issues about Apple’s AI technique.
Wedbush analyst Dan Ives repeatedly known as it a “catastrophe,” whereas Deepwater Asset Administration’s Gene Munster has argued that the bar for Apple’s AI progress stays low however might rise sharply within the subsequent two years as Siri integrates Google’s Gemini mannequin.
Regardless of the criticism, Jefferies has raised its Apple value goal to $205.82, citing tariff reduction and long-term AI potential, whereas HSBC and MoffettNathanson saved Maintain and Impartial rankings.
Nonetheless, Jefferies stays “unexcited” in regards to the upcoming iPhone 17, even with optimistic U.S. shopper survey outcomes, arguing that Apple inventory seems “unattractive” at 30 instances FY26 estimated earnings, given its projected 15% compound annual progress charge.
Benzinga’s Edge Inventory Rankings present that AAPL continues to exhibit a robust upward trajectory throughout brief, medium and long-term horizons. Additional efficiency insights can be found right here.
Photograph Courtesy: Paolo Bona on Shutterstock.com
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Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and printed by Benzinga editors.
