In the second quarter (April to June, fiscal year third quarter), Apple, which reported strong results, announced that it is actively moving to catch up with its competitors in the artificial intelligence (AI) war. Apple has faced criticism for being passive in its AI investments compared to other big tech companies. Attention is focused on whether Apple can maintain its growth momentum while strengthening its AI business.
Tim Cook, Apple's Chief Executive Officer (CEO), said during a conference call held after the announcement of the fiscal year 2025 third quarter results on the 31st (local time), "I believe AI is one of the most profound technologies of our lifetime." He added, "We are applying this across devices, platforms, and throughout the company. We are also significantly increasing our investments." He further stated, "Apple has always focused on making the most advanced technology easily accessible and usable by everyone. This is the core of our AI strategy."
Cook's remarks are interpreted as being conscious of consumer and industry evaluations. Apple has been criticized for lagging behind in the era due to its passive investments while competitors eagerly expand their AI businesses. At the recent Apple Worldwide Developers Conference (WWDC), it faced accusations of overhyping an inadequately prepared AI-based Siri.
On the same day during the conference call, Cook stated that they are strengthening their AI-related personnel. He said, "We have a great team, and we are focusing all our energy here." This remark seems to acknowledge the increasing turnover of AI-related employees within Apple. Recently, Bowan Zhang, who led multimodal AI research in Apple's Foundation Model (AFM) team, transitioned to Meta, resulting in Apple losing four key researchers to Meta in just one month.
Bloomberg reported that Apple is being compared to Meta in terms of AI investment and noted, "The uncertainty regarding AI policies is undermining morale in this organization and encouraging personnel attrition."
Apple is expected to focus its AI investments on mergers and acquisitions (M&A). Since acquiring headphone manufacturer Beats for $3 billion (approximately 4 trillion won) in 2014, Apple has not engaged in large-scale M&A activities. However, Cook mentioned that "we have already acquired seven companies this year," adding, "Acquisitions are happening roughly every few weeks." He noted, however, that "none of these were large-scale acquisitions in dollar terms." Apple is reported to have recently internally reviewed its acquisition of AI startup Perplexity AI.
However, it is anticipated that Apple will not immediately launch products equipped with enhanced AI technologies. On that day, Cook remarked, "Launching with incorrect features or products can be a mistake, especially if the products do not function as promised." Regarding Siri, he mentioned, "We are making good progress in the updates."
Apple reported revenue of $94.44 billion (131.74 trillion won) and a net profit of $1.57 per share on the 31st (local time). Both revenue and net profit per share exceeded Wall Street expectations of $89.53 billion and $1.43, respectively, as compiled by market research firm LSEG. Revenue increased by 9.6% compared to the same period last year, marking the highest growth rate since the fourth quarter of 2021 (October to December).