Report: Apple's AI Strategy Could Finally Pay Off in 2026

[MacRumors]

Apple's restrained artificial intelligence strategy may pay off in 2026 amid the arrival of a revamped Siri and concerns around the AI market "bubble" bursting, The Information argues.

The speculative report notes that Apple has taken a restrained approach with AI innovations compared with peers such as OpenAI, Google, and Meta, which are investing hundreds of billions of dollars in data centers, chips, and large language model training. This has fueled criticism that Apple is falling behind in the AI space, particularly as Siri has significantly lagged behind more advanced, capable, and reliable conversational systems.

The report argues that market sentiment toward AI spending is beginning to show signs of skepticism, with questions emerging over whether such large investments can be justified by near-term revenue. Against that backdrop, Apple's decision to limit AI-specific capital expenditures has left it with more than $130 billion in cash and marketable securities, giving the company the option to pursue acquisitions or partnerships if valuations of AI startups fall.

Apple's biggest AI-related move in 2026 will be the long-anticipated overhaul of Siri, which is expected to arrive in the spring. The updated assistant is set to be more conversational and capable of completing multi-step tasks. To power it, Apple is believed to be adopting Google's Gemini, reflecting an internal view that large language models may become commoditized and not worth the cost of large-scale proprietary development.

The iPhone is said to be a key strategic advantage. Unlike AI companies that rely on standalone apps or web services, Apple can distribute AI features directly through software updates and system-level integrations across its devices. Efforts by AI companies to build competing hardware face major challenges in manufacturing, distribution, and ecosystem development, areas where Apple has very strong footholds.

The Information also points to recent leadership changes as part of Apple's effort to refocus its AI work. Siri has been placed under Mike Rockwell, who was responsible for launching the Vision Pro headset, following significant delays to the assistant's overhaul. In addition, Apple's AI chief John Giannandrea announced his retirement earlier in December, with parts of his organization redistributed into product-focused teams amid internal concerns about a lack of clear product direction.

While Apple has a history of early but uneven AI efforts, including the original launch of Siri in 2011, The Information argues that these shortcomings have not materially harmed its core businesses. 2026 may be an inflection point in which Apple's cautious strategy could appear prescient if enthusiasm for large-scale AI spending continues to cool and the company finally delivers a more capable version of Siri.

Article Link: Report: Apple's AI Strategy Could Finally Pay Off in 2026

 

[UliBaer]

I'm curiously awaiting the incoming results - especially the overhauled Siri.

 

[GMShadow]

The pop will be ugly and it's my hope we see a lot of executives forced out. Nadella and Hood both need to be sent into low-earth orbit, as does Pichai over at Google, and Altman's needed to be fired for years.

 

[segfaultdotorg]

Or it could continue to flounder and flop?

 

[iToph]

So sheer cluelessness is called „strategy“ nowadays? Interesting…

 

[ProbablyDylan]

Nah boss we're not lazing around or paralyzed by indecision, this is the plan!

 

[shenfrey]

I dunno, I am not sure if 'not the first but the best' can really count here in the AI race. Google and other players are just so far ahead it's unbelievable.

But I hope to be proved otherwise

 

[froot1988]

Blablablabla they can't even get the keyboard to work without stuttering and missinputs

 

[cjsuk]

Apple's AI strategy is actually having a mature business that isn't entirely dependent on LLMs. So when the ass falls out of the LLM market they will be market leaders everywhere else.

Also who cares about Siri? Mine has been turned off for nearly 2 years. I don't miss it. Where the computer has to interpret what I'm asking is where problems always turn up. It's bad enough when working with humans.

 

[swingerofbirch]

That's a very distorted take.

They had a veritable boondoggle in their Tesla competitor development, and that was essentially all AI spending. Tim Cook said himself that autonomous driving was the ultimate AI challenge. That's where they spent years and fortunes.

The idea that they have been "restrained" rather than constrained and that the current state of Siri was strategic is preposterous.

The part I agree with is that Apple has so much inertia that not even introducing the iPhone 16/Pro with AI as the hallmark feature that then flopped has slowed them. It's not admirable, but it is true. They even made the flagship Apple Store have the new Siri glow for the 16 release. If that embarrassment didn't throw a wrench into the gears of the Apple machine, nothing in the foreseeable future will.

 

[nc_sketchy]

Its nice to see that multi billion dollar/ trillion dollar corporations are not immune to the sunken cost fallacy.

 

[WarmWinterHat]

Color me skeptical...Not only has Apple been flailing in the LLM space, they have been flailing with software across the board. iOS 26 sucks, the Photo app sucks, Tahoe sucks, they completely screwed up the workout portion of the watch, etc.

I'll believe it when I see it. Until then:

 

[woolypants]

The scandal over Tim Cook's Christmas Twitter post being AI generated, and not transparently declaring it, is all you need to know about Apple and AI.

They're basically a generation behind. They still don't really get the culture around AI. They still don't really see its potential. They're still trying to catch-up.

 

[michaeljk]

Apple has an "uneven" history with AI? That implies that there are crests as well as troughs. All I see are troughs. Apple doesn't get AI. It is that simple. Even if LLM investments prove to be way overvalued (which might happen), Apple has completely abandoned any real effort to meaningfully incorporate AI features into nearly everything it does. Google is so far ahead of Apple here, I doubt Apple will ever be able to "catch up" especially when it is relying on its primary competitor for AI. Remember when Apple decided (against the strong rebukes by Steve Jobs) to rely on Bill Gates for its Office suite of software? Google already basically stole iOS when it created Android, What a mess.

 

[Minato1990]

Apple is going to have an “call an ambulance, but not for me” moment?

 

[michaeljk]

Gemini helped us through a blizzard yesterday. We ended up driving through Iowa and Minnesota through a blizzard. Google maps was indespensible in its real-time communications with Iowa Department of transportation to clue us in on what roads were open, closed, dangerous, etc. Apple Maps? Completely left in the dust, giving us false and outdated information. Just terrible.

 

[Taq'aix]

Hahaha …. Nice joke Mr. 😂

 

[WarmWinterHat]

Gemini helped us through a blizzard yesterday. We ended up driving through Iowa and Minnesota through a blizzard. Google maps was indespensible in its real-time communications with Iowa Department of transportation to clue us in on what roads were open, closed, dangerous, etc. Apple Maps? Completely left in the dust, giving us false and outdated information. Just terrible.

I appreciate using Google Maps, and I use it too, but what did Gemini have to do with that? It did all those things before Gemini existed.

 

[cjsuk]

Gemini helped us through a blizzard yesterday. We ended up driving through Iowa and Minnesota through a blizzard. Google maps was indespensible in its real-time communications with Iowa Department of transportation to clue us in on what roads were open, closed, dangerous, etc. Apple Maps? Completely left in the dust, giving us false and outdated information. Just terrible.

Think that might have been a lot of luck that just lined up for you. Even with best error bounds, it was a tangible risk using that technology for real time information.

 

[senttoschool]

What strategy?

Behind severely isn’t a strategy. Not having a frontier model isn’t a strategy.

 

[satchmo]

Gemini helped us through a blizzard yesterday. We ended up driving through Iowa and Minnesota through a blizzard. Google maps was indespensible in its real-time communications with Iowa Department of transportation to clue us in on what roads were open, closed, dangerous, etc. Apple Maps? Completely left in the dust, giving us false and outdated information. Just terrible.

Between OpenAi and Gemini, Gemini seems to be the lesser of two evils.

Not sure I trust Altman to do the right thing.

 

[ZeroInspo]

What strategy?

Behind severely behind isn’t a strategy. Not having a frontier model isn’t a strategy.

Why do they need a frontier model? Are there any profits in it? Is there significant user demand for it? Anyone who understands how LLMs work, and has taken out 5 minutes of their time to think of how organic consciousness work could have guessed that LLMs, in their current approach, would never reach what people think of when they think of AI, or AGI as they like to call it. That doesn't mean it isn't useful, it's just not useful enough for the average consumer.

Your mentality is what has driven our economy to be in its current suicidal state "this is the latest thing therefore we absolutely have to invest everything in it no matter whether it is profitable, useful or even wanted at all". Mind you I'm not against AI, I use it daily and probably more extensively than 99% of users. The question, however, is, do LLMs need to be embedded in everything and does every company absolutely have to develop their own proprietary LLM? The answer to both of those questions you will find is: NO.

 

[ugahairydawgs]

"Could" is doing a LOT of heavy lifting in that headline.

 

[thefredelement]

Apple's only mistake with AI was adding Apple Intelligence before it was ready.

Apple will do what they've always done, they weren't the first desktop, but make the best ones, they weren't the first mp3 players but made the iPod, not the first smart phones but reinvented the world with iPhones, etc.

Apple's brand isn't 'AI Slop' - they don't do slop, they'll ship it when it's ready and cohesively fits within their ecosystem.

 

[jayducharme]

Apple has always claimed to be focused on what users need and want. They won't implement AI for AI's sake. They want to find a way to benefit their users. Right now the tech is too immature to deliver on that promise, so they're playing a waiting game. I don't have a problem with that, especially since AI so far hasn't lived up to its potential.