iPhone Remains Strong Despite Apple's AI Challenges, Says Perplexity CEO - News Directory 3

His comments come amid criticism of Apple's delayed AI features, particularly surrounding Siri, which internal leaders have described as "ugly and embarrassing" due to premature marketing of unfinished...

The iPhone is not getting disrupted by artificial intelligence, despite ongoing concerns about Apple's AI challenges, according to Perplexity CEO Aravind Srinivas.

Srinivas argues that Apple's long-standing competitive advantages, or "moats," remain intact and may even be strengthened by broader AI innovation across the industry. Rather than weakening Apple's position, advances in AI elsewhere could enhance the iPhone's utility and deepen its integration into users' daily lives.

His comments come amid criticism of Apple's delayed AI features, particularly surrounding Siri, which internal leaders have described as "ugly and embarrassing" due to premature marketing of unfinished capabilities. These setbacks have contributed to a 12.2% year-to-date decline in Apple's stock and led Morgan Stanley to lower its price target from $275 to $252.

Despite these challenges, Srinivas believes Perplexity can help bridge the gap, stating that "Perplexity will make Apple Intelligence work" in response to suggestions that the AI startup could replace Siri on iPhones. He maintains confidence that Apple's ecosystem will continue to deliver meaningful advancements, even if the rollout of its own AI has been slower than expected.

Apple CEO Tim Cook previously expressed confidence in Apple Intelligence, saying it would make Apple products "profoundly different" and place users "on a different technology curve," comparing its potential impact to the introduction of the iPhone's touch interface.

As Apple prepares for a leadership transition with John Ternus set to become CEO later in 2026, the company faces a landscape increasingly shaped by AI and external pressures such as tariff uncertainty. Ternus, currently senior vice president of hardware engineering, has spent over two decades at Apple working on products including the iPhone, iPad, Apple Watch, AirPods, and MacBook Neo, and is seen as well-positioned to navigate the technical and strategic challenges ahead.

Apple continues to benefit from a strong and loyal customer base, consistently ranking at the top of global smartphone shipments. The company's focus now is on maintaining and building on that trajectory, leveraging its hardware expertise and services ecosystem to adapt to evolving demands in an AI-influenced market.