Analyst Dan Ives’s blunt take on Apple AI; says ‘No one on the Street believes…’

Apple’s artificial intelligence (AI) strategy is a “disaster” and the company is falling far behind rivals such as Microsoft, Google, Meta and OpenAI, Wedbush analyst Dan Ives said in an interview with Bloomberg Tech. Ives said that Apple’s internal AI efforts have failed to impress, pointing to Siir as an example. “Nothing’s going to happen internally,” he said, adding, “It’s not happening internally and there’s no one on the Street that believes any innovation is coming out of Apple when it comes to AI organically.”Speaking on the show, Dan Ives reiterated that Apple will need acquisitions and partnerships to stay competitive. “They’re going to have to do an acquisition. I mean, look, it’s the reality of the situation,” he said.He has previously suggested a three-pronged plan for Apple: acquire AI search firm Perplexity, recruit top AI talent, and consider integrating Google’s Gemini AI.Ives also warned that Apple’s slow AI growth could affect CEO Tim Cook’s legacy. He said competitors are moving aggressively in AI and Apple must act quickly to secure its place in the next technological revolution.

Apple has more than 2.4 billion iOS devices worldwide, which gives it a strong consumer base. However, Ives said without a bold AI plan, Apple’s leadership could be challenged by rivals.

When Dan Ives said it is time for Apple to make an acquisition

This is not the first time Dan Ives has criticized Apple. After the company’s Worldwide Developers Conference (WWDC) in June, he wrote in a research note that it “felt like an episode out of ‘Back to the Future’”, especially when it came to Apple’s treatment of AI. “Barely no mention of AI,” Ives then remarked, calling it “the elephant in the room.”“It’s becoming crystal clear that any innovation around AI at Apple is not coming from inside the walls of Apple Park,” he then said. Ives wrote that “the time has come” for Apple to make a big acquisition, calling Perplexity a “no brainer” target. He said such a deal could quickly boost Apple’s weak AI platform and turn Siri into the “next AI gateway for consumers.”

Investor to Apple: Change your CEO

Last month, analysts at LightShed Partners said that Apple may need a leadership change to better focus on product innovation, especially in the area of artificial intelligence (AI). In a note published on July 09), the analysts said that while CEO Tim Cook brought operational expertise to the top job, the company now “needs a product-focused CEO.” “To be clear, Tim Cook was the right CEO at the time of his appointment and unquestionably has done a great job,” the analysts wrote. “Apple has sold over $2.0 trillion of iPhones with Cook as CEO. In fact, iPhone sales could show signs of life this quarter, as tariff-related pull-forwards help stabilize replacement cycles that may finally be bottoming out.”