I think Apple is doing just fine on AI.
It’s pretty clear that “Apple Intelligence” was only announced because of investor pressure to do something. And those announcements turned out to be vaporware. That’s bad. But I don’t really think people cared about iPhone 16 having AI features, and fundamentally Apple is in a good position. The barriers to entry on making a decent LLM are close to zero. There is no need for Apple to be the market leader here. Most AI features on devices are gimmicks, and as for what’s not, Apple can just partner with OpenAI or whoever to bring those features to Apple devices. The money in AI will not be on consumer products but on B2B stuff, which Apple is poorly-equipped to do and is much better left to companies like Microsoft.
Apple’s AI pitch should be that Apple devices have the best and most secure processors to run your AI apps, which will be made by third parties. The across-the-board RAM increase is Apple’s most important AI move.