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Panic at Apple: new CEO realizes the company is in serious trouble

Posted on by admin
Behind the optimistic front presented by Apple’s new CEO, John Ternus, during his first Wall Street investor call over the weekend, deep concerns are reportedly growing among senior executives at the Cupertino technology giant. While Ternus publicly declared that the company had finally achieved the Siri it had always envisioned, emphasizing its privacy advantages, the message behind closed doors is very different.

Ternus, who understands that Apple still lags significantly behind its competitors, recently held a tense private meeting with the senior vice president of software engineering, Craig Federighi. During the meeting, he reportedly issued a clear demand to accelerate the company’s development roadmap and transform its voice assistant into a genuinely autonomous AI agent.

מימין: ג'ון טרנוס, טים קוקמימין: ג'ון טרנוס, טים קוק

Former Apple CEO Tim Cook and John Ternus

(Photo: Getty Images)

Internal tensions and growing frustration

According to Bloomberg, Federighi, who took over responsibility for Apple’s AI operations following the removal of John Giannandrea last year, has developed a reputation as an AI skeptic, concerned about the technology’s implications for privacy and security.

His centralized management style and relatively short planning horizons of just 12 to 18 months, compared with the hardware division’s five-year plans, have reportedly created internal friction and delays.

Mike Rockwell, who led development of Apple’s mixed-reality headset, is also involved in overseeing the project. He is now considering stepping down from his position next year, possibly because of the project’s commercial failure. Such a move could transfer leadership to Sebastien Marino or Amar Subramanya, a former senior Google executive.

The frustration among Apple’s leadership stems from the fact that the market has already moved on to the next stage.

Although the new Siri, launched two years behind schedule as part of iOS 27 and rebuilt around Google’s Gemini, can now understand what appears on the screen and retrieve information from emails and messages, it still requires users to explicitly request each action they want it to perform.
מימין: מנכ"ל אפל היוצא טים קוק, מנכ"ל OpenAI, סם אלטמןמימין: מנכ"ל אפל היוצא טים קוק, מנכ"ל OpenAI, סם אלטמן

OpenAI CEO Sam Altman and Cook

(Photo: Reuters)

In the upcoming iOS 27.3 beta, Apple is expected to finally introduce the ability to carry out complex actions within its own applications. By spring, that functionality is expected to expand to third-party apps, enabling tasks such as making restaurant reservations or performing multistep photo edits.

The company is also still working to complete an autonomous tool capable of independently identifying and replacing compromised passwords across the internet.

Compared with competitors in the United States and China, however, these steps appear overly cautious. Advanced systems such as OpenAI’s Dots, Meta’s Muse and Elon Musk’s Grok already operate as persistent AI agents capable of managing projects over time, monitoring changes in the background and initiating actions without requiring user intervention at every stage.

Meanwhile, Anthropic and OpenAI already offer computer-control tools capable of moving a cursor, clicking buttons and operating software much like a human user.

In China, manufacturers such as Huawei and Xiaomi have also integrated intelligent agents directly into their operating systems, enabling extensive automation across applications.

Apple changes its development strategy

To close the gap, Apple is fundamentally changing the way it develops its next operating systems, iOS 28 and macOS 28, under the codenames Bell and Poppy.

Instead of dividing the initial development phase into four weeks of coding followed by four weeks of integration, the company has given engineers six full weeks of unrestricted research and development. The goal is to encourage bolder ideas before the final feature set is locked in.

Apple recognizes that its current control over chips and devices will not be enough if competitors introduce dedicated hardware designed from the outset around intelligent agents that can see, remember and act. That is the real threat the company must confront.

Nobody underestimates Apple’s hardware capabilities, particularly the strength of a brand that has managed to maintain a loyal and devoted customer base. But younger consumers, especially those belonging to Generation Z, were born into a far more technologically advanced world.

Many of them do not need Apple to serve as an intermediary in their use of advanced technologies, unlike earlier generations.

With OpenAI collaborating with Jony Ive, the designer behind the iPhone and Apple’s other iconic products, and Google integrating Gemini into every hardware product it can, from refrigerators to Google-powered computers, Apple faces a challenging decade. It will have to proceed carefully if it wants to remain relevant in 2036.

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