Apple is confronting a range of technical and regulatory hurdles just as its top executives prepare to address the company’s annual software developer conference. Among the most pressing issues is the delay of several AI features that were promised at last year’s conference, including significant upgrades to its Siri digital assistant. Meanwhile, rivals like Google and Microsoft are surging ahead, unveiling a stream of new AI innovations to win over developers. At the same time, Apple is facing legal pressures in the U.S. and Europe, where courts are reviewing the fairness of its App Store fees.
The company’s market position has been further shaken by threats of a 25% tariff on iPhones from U.S. President Donald Trump, intensifying its economic concerns. Apple’s stock has fallen more than 40% since the beginning of the year—worse than Google’s and significantly behind Microsoft’s AI-fueled growth. Although Apple has launched some AI features, including writing and image-generation tools, it continues to depend on external partners like OpenAI for core functionality. Analysts doubt the company currently possesses a powerful “multi-modal” AI model, which would be essential for next-generation products like smart glasses.
Smart glasses have emerged as a battleground for tech giants, with Meta and Google racing ahead with lighter and more affordable offerings compared to Apple’s $3,500 Vision Pro headset. Meta’s Ray-Ban smart glasses retail for under $400 and integrate AI in a way that enhances real-world interaction through natural language and visual recognition. Apple, by contrast, has yet to signal a response to this growing segment, raising concerns among analysts about its readiness to defend its hardware dominance.
Despite Apple’s current lag, competitors are not without their own limitations. Meta’s glasses lack some key features, and Google’s AI-driven “Gemini” model is still not embedded in a mass-market product. However, experts believe Google is catching up quickly and could soon challenge Meta’s lead. While Apple’s Vision Pro offers a high-end showcase of its capabilities, it is not yet seen as a practical, everyday product in the way smart glasses could be.