Apple has announced it needs more time to enhance Siri’s artificial intelligence (AI), with CEO Tim Cook stating during a recent earnings call that the company is working hard to meet its high standards before releasing new features. Although Cook did not give specific reasons for the delay, he emphasized that the process is simply taking longer than expected. Siri has faced increasing criticism for falling behind competitors like Amazon’s Alexa and other advanced AI chatbots. Issues with Apple’s broader AI system, Apple Intelligence, such as generating inaccurate news alerts, have also raised concerns. Luc Julia, Siri’s co-creator, suggested Apple’s desire for perfection may be slowing progress. Despite these challenges, Cook said users in regions where Apple Intelligence is available have shown positive responses, with stronger iPhone 16 sales in those markets.
In addition to development delays, Apple is also facing a $900 million increase in production costs for the upcoming quarter due to global tariffs. While Apple has shifted most iPhone manufacturing for the U.S. market to India and sources iPads, Macs, and Apple Watches from Vietnam, the company still produces devices for other countries in China. Cook confirmed Apple’s continued efforts to diversify its supply chain to avoid over-dependence on a single country. Despite these cost pressures, Apple remains committed to maintaining quality and efficiency in its global production strategy.
Apple’s legal challenges have also intensified. A U.S. federal judge recently ruled that Apple is in “willful violation” of a 2021 court order from the Epic Games lawsuit. The order required Apple to allow developers to use third-party payment options without facing Apple’s 30% commission. However, Apple reportedly charged a 27% commission and displayed warnings to users attempting to make external payments. The judge ordered Apple to stop both practices and referred the matter to the U.S. attorney for possible criminal contempt charges. In response, Cook stated that Apple believes it has complied with the court’s orders and plans to appeal the decision. He declined to comment on the Justice Department’s separate antitrust case against Google, which could impact Apple, given Google’s multi-billion-dollar deal to remain the default search engine on Apple devices.
Apple is also facing its own antitrust lawsuit from the U.S. government, which accuses the company of using its smartphone market power to impose restrictive rules on developers and limit access to essential features. In Europe, Apple and Meta were recently fined for violating the Digital Markets Act, with Apple being accused of preventing developers from offering alternative payment options.
Despite all these challenges, Apple reported strong financial results for its fiscal second quarter, which ended on March 29, 2025. The company earned $24.78 billion, or $1.65 per share, on revenue of $95.4 billion—an 8% increase in profit and a 5% rise in revenue compared to the same period last year. iPhone revenue rose 2% to $46.8 billion, while Mac and iPad sales grew by 7% and 15% respectively. However, revenue from wearables, home products, and accessories declined 5% to $7.5 billion. These earnings slightly exceeded Wall Street expectations, but Apple’s stock still fell 4% in after-hours trading, closing at $204.86.
