Apple is right not to rush headlong into generative AI
One day the Vision Pro could exploit the technology to the full
If you think Tim Cook has always led a charmed life at the helm of Apple, think again. The years straight after the death of Steve Jobs in 2011 were a trial by fire. First there was antitrust: America’s Department of Justice (DoJ) sued Apple for conspiring to fix e-book prices. Then there was competition: Samsung, a South Korean rival, went to war with the iPhone with bigger, sleeker models. Then came broader concerns. Apple’s new voice assistant, Siri, made rookie errors. Ditto Apple Maps, which went as far as relocating the Washington Monument to the Potomac river. At the time, the question hanging over the company was existential: could Apple’s creative spark survive the death of its founder? One of Mr Cook’s lieutenants was so miffed at the criticisms that he publicly retorted in 2013: “Can’t innovate any more, my ass!”
A decade or so later, Mr Cook may be feeling déjà vu. On all three counts—antitrust, Asian competition, the existential question of innovation and growth—there are parallels between then and now. Competition watchdogs in the EU are demanding compliance from March 7th with rules that for the first time breach the “walled garden” which keeps users and developers bound within Apple’s playpen. On March 4th they fined the company €1.8bn ($2bn) for allegedly stifling competition in music streaming. In America the DoJ may soon launch a case against Apple. In China, Huawei, a domestic mastodon, is seizing market share. Hanging over everything is the nagging concern, amid a levelling off in iPhone sales, that Mr Cook is missing the chance to pull another rabbit out of the hat with generative artificial intelligence (gen AI).
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This article appeared in the Business section of the print edition under the headline "Something’s Cooking"
Business March 9th 2024
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