Apple assumes it will not lead AI and focuses on hardware sales

After the launch of ChatGPT In November 2022, many companies reoriented their strategy towards artificial intelligenceinvesting billions of dollars along the way. However, this approach has not worked equally well for everyone and some have learned the hard way that they need to go back to what they already know. One of those companies is Apple.

According to reports Mark Gurman on Bloomberg, Apple’s address is fully aware of its shortcomings in the AI ​​market and recognizes that the company is unlikely to become a leader in this race.

Instead, Apple is taking a new approach that looks at what its track record has been for many years. Gurman says that Apple’s new strategy, which will be presented at the Worldwide Developers Conference on June 8, consists of ‘sell highly profitable hardware and make money from services that run on it’.

This does not mean that AI will not play an important role at WWDC, in which the much-announced renewal of Siri. But it won’t be like two years ago, when Apple advanced that and other innovations in AI, with its own models, which finally arrived only partially and in a very staggered manner.

Apple is aware that few users would be willing to pay for a Siri subscription. Instead, the manufacturer of the iPhone aims to integrate enough AI functions into its hardware to prevent users from switching to Androidwhile opens Siri and Apple Intelligence to third-party services. ‘This approach takes advantage of Apple’s hardware, makes its products more customizable and keeps the company in control of its ecosystem‘ adds Bloomberg.

The new function will play a key role in this strategy Extensionswhich is expected with iOS 27. This feature allows users Install your favorite third-party AI chatbots and run them inside Siri.

Gurman points out that the function will have a specific section in the App Storewhich will allow Apple to generate income through its commission of the 30%. At the same time, Apple continues to make progress in renewing Siri through an alliance with Google and the use of technology Gemini to offer its users more internally developed AI capabilities.

In short, Apple knows that it will not catch up with Google, OpenAI and Meta in the AI ​​race. That is why it clings to its main strength, which is sell hardware, while maintaining control of your ecosystem and taking a cut of what third-party AI applications and services generate in the App Store.