Apple Faces Troubling Times
Apple, the third most valuable company in the world, has experienced a tumultuous year in 2025. The tech giant's shares have fallen 16% this year, a decline that has raised concerns about the company's performance and its ability to innovate, particularly in the rapidly evolving field of artificial intelligence (AI).
Despite these concerns, there has been no explicit, widespread call for Apple to replace its CEO, Tim Cook, who has been at the helm since 2011, replacing the iconic Steve Jobs. However, Apple’s stock has dropped notably this year, including a 1.97% decline on August 20, 2025, amid legal battles, production issues, and competitive pressures. Berkshire Hathaway also reduced its Apple holdings by $4 billion, signaling some investor caution.
Analysts highlight that Apple is losing market share in China and facing stronger competition from Chinese smartphone makers and rivals like Google with enhanced AI-driven features on devices such as Pixel 10. Apple's revenue and earnings growth have flattened since 2023, and its position as a growth driver, especially in AI-enabled products, is weaker compared to peers. This stagnation and competitive pressure on AI innovation contribute to investor wariness but have not triggered public calls for leadership changes.
The tech industry has a sense that Apple needs another 'iPhone moment' due to innovation stalling in the smartphone, which is nearly 20 years old. Mark Gurman argues that Tim Cook bears responsibility for Apple's current struggles, including AI missteps, an aging product lineup, the erosion of its design-focused culture, a decade-long drought of breakthrough mainstream hardware, and growing tensions with developers and regulators.
Apple has faced a series of missteps with product launches and software initiatives, including the underwhelming response to Vision Pro and the ongoing Apple Intelligence rollout debacle. Time is of the essence for Apple to recapture the old magic and compete effectively in the AI race, as rivals are preparing to release their AI gadgets.
A leading research firm, LightShed, has suggested that Apple might need a new CEO who is product-focused, not logistics-centered. AI-focused rivals' shares have conversely risen in 2025. Jony Ive, a notable figure in Apple's design department, is reportedly involved in the design of the AI gadgets from OpenAI, a potential competitor to Apple in the AI market.
The stakes are high for Apple. AI is expected to reshape industries across the global economy, and Apple risks becoming one of its casualties if it continues to struggle in the AI race. LightShed argues that Apple’s faltering entrance into the AI race could fundamentally alter the company’s long-term trajectory and ability to grow. The future of Apple remains uncertain, but one thing is clear: the tech giant must innovate and compete more effectively in AI to maintain its position as a global leader.
[1] Source: Bloomberg, CNBC, and Reuters [2] Source: The Verge and TechCrunch
- With the rise of artificial intelligence and intensifying competition, Apple needs a fresh perspective in design to regain its market edge, as suggested by LightShed.
- Despite Tim Cook's tenure as CEO since 2011, there are growing concerns about Apple's ability to innovate, particularly in the AI sector, leading some analysts to question Apple's product-focused culture.
- In the rapidly evolving world of AI, Apple risks falling behind its rivals, such as Google, Chinese smartphone makers, and potential competitors like OpenAI, if it does not rejuvenate its innovative design and UI.
- To stay competitive, Apple must address criticism related to its stalled smartphone innovation and perceived missteps with product launches and software initiatives such as Vision Pro and Apple Intelligence.
- As a leading company in technology and finance, Apple's future success will rely heavily on its ability to adapt and excel in AI, a field expected to revolutionize multiple industries and shape the global economy's future course.
- Art, branding, and 3D design will play crucial roles in Apple's AI gadgets, with former Apple design chief Jony Ive reportedly contributing to OpenAI's AI offerings, posing a competitive threat to Apple in the AI market.
