Apple faces a unique set of technical and regulatory challenges as its top executives prepare to present at the company’s annual software developer conference on Monday.
Despite promising a range of artificial intelligence features at last year’s event, many have been delayed until next year, while rivals like Google and Microsoft continue to attract developers with new AI capabilities. Apple has introduced some AI tools, such as writing and image-generation features, but still depends on external partners like OpenAI for key functions.
The company is yet to develop a “multi-modal” AI model that can process images, audio and language simultaneously, a technology that could drive smart glasses, a product category gaining traction with competitors Meta and Google.
While Apple has concentrated on its $3,500 Vision Pro headset, Meta and Google are pushing lighter, more affordable smart glasses that leverage AI to enhance user experience. Meta’s Ray-Ban glasses, retailing for under $400, and Google’s upcoming entry into the market offer cheaper alternatives that recognize user environments and provide real-time responses.
Analysts suggest Apple faces pressure to catch up but do not expect a major smart glasses announcement at the conference.
Regulatory scrutiny also weighs heavily on Apple, with courts in the U.S. and Europe preparing to challenge the company’s App Store practices, including fees that even some former allies question. Meanwhile, Apple confronts external pressures from U.S. President Donald Trump’s threat of 25% tariffs on the iPhone, contributing to a stock decline of more than 40% this year, surpassing losses at Google and lagging gains seen at Microsoft.
Despite these hurdles, some experts argue that smart glasses remain a niche market and that Apple’s partnerships with companies like Google or OpenAI could help it stay competitive in AI technology. So far, consumer hardware purchasing decisions do not appear to hinge on AI features, suggesting that Apple’s measured approach might not put it at a significant disadvantage.
