Analysts have raised concerns about Apple’s ability to maintain its competitive edge in artificial intelligence (AI) without making significant strategic moves, such as acquiring a platform like Perplexity.
In its recent financial results for the third quarter of fiscal 2025, which concluded on June 28, Apple reported revenue of $94 billion, representing a 10% increase from the previous year. Earnings per share (EPS) also saw an uptick of 12%, reaching $1.57. This quarter marked a record high for the company, with all-time revenue milestones achieved for the iPhone, Mac, and services.
Despite these impressive financial outcomes, analysts, including those from Wedbush, express concerns about Apple’s current AI strategy. They argue that Apple is falling behind competitors such as Google and Microsoft, both of which are significantly investing in and acquiring advanced AI technologies. In contrast, Apple appears to rely on internal development, which analysts deem insufficient for creating groundbreaking advancements in AI.
The recently introduced AI platform Perplexity has emerged as a potential game changer. Analysts speculate that Apple should consider a substantial investment of up to $40 billion to acquire it, a figure that would mark the largest acquisition in the company’s history. The last major acquisition made by Apple was in 2014, with the purchase of Beats for $3 billion.
During the Worldwide Developers Conference (WWDC) 2025, Apple highlighted the expansion of its Apple Intelligence features. However, Wedbush analysts assert that these updates do not constitute a robust AI strategy, especially when compared to the many AI products launched by competitors with clear real-world applications.
To stay competitive in a rapidly evolving technological landscape, analysts recommend that Apple develop more disruptive solutions rather than merely enhancing its existing software. As AI continues to transform user interactions with devices, effective and practical AI integration will be crucial for platforms like iOS and macOS. Without decisive action, Apple risks falling behind in an ecosystem increasingly oriented toward AI.