Apple AI Strategy Faces Setback After Siri Delays
Apple AI Strategy drew scrutiny after Siri testing snags and delayed features, keeping the market focused on execution and Wedbush's $350 target.
KEY TAKEAWAYS
- Siri testing snags shifted major features to iOS 26.5 and iOS 27.
- A research note reiterated Outperform and a $350 target and projected $75-$100 per-share upside.
- An analyst warned memory and storage costs could raise iPhone component costs about 15%.
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Apple Inc.'s AI strategy drew investor scrutiny after reports of Siri testing snags and postponed features, while analysts flagged higher component costs and execution risks as the company prepares a phased rollout.
Siri Delay and Testing Issues
Apple announced a major Siri overhaul at its Worldwide Developers Conference in June 2024, initially targeting an early 2025 launch before pushing the timeline into 2026. Internal testing problems delayed key features from the anticipated iOS 26.4 release in March 2026 to a staged rollout across iOS 26.5 in May and iOS 27 in September.
Reported issues included Siri reverting to an OpenAI ChatGPT model, slower response times, and accuracy gaps. These problems led Apple to defer core functions such as voice-based in-app actions and expanded personal-data search. The overhaul relies on Apple Foundation Models and integrates Google’s Gemini system, building on earlier OpenAI partnerships.
Apple said on February 13 it remains on track to launch the AI features in 2026. The company has scheduled a special Apple Experience event on March 4 to detail its AI roadmap for Siri and related wearables.
Analyst Perspectives and Market Risks
A research note reiterated an Outperform rating and a $350 target, describing the delay as a strategic phased rollout and expecting advanced AI features by summer 2026. The note projected the AI strategy could add roughly $75 to $100 per share over several years, with a 2026 monetization inflection tied to a new iPhone cycle and services.
An analyst warned that rising memory and storage costs could increase iPhone component expenses by about 15%, heightening execution and supply-cost risks for AI-enabled models. The company’s installed base supports the opportunity, with about 2.5 billion iOS devices in use, including roughly 1.5 billion iPhones.
A reported Federal Trade Commission probe into Apple was noted as a potential regulatory risk that could affect services revenue. Analysts remain divided: some view the staggered schedule as deliberate pacing to manage a complex rollout, while others warn of execution delays and a competitive lag of one to two years that could affect near-term positioning.
