Apple on Thursday signaled that it’s getting more serious about its plans to catch up in the AI race.
In a significant development during Apple’s Q3 2025 earnings call, CEO Tim Cook expressed the company’s deep commitment to artificial intelligence (AI), describing it as “one of the most profound technologies of our lifetime.” Cook emphasized Apple’s approach of embedding AI across devices, platforms, and throughout the company. “Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone,” he said, highlighting this ethos as central to their AI strategy.
As Cook elaborated, Apple is reallocating substantial human resources to focus on AI innovation. “We have a great, great team and we’re putting all of our energy behind it,” he declared. This strategic shift shows Apple’s intent to not only catch up with competitors but to lead in the AI domain.
The financial side of this strategy is also significant. Apple’s increased capital expenditures (CapEx) are being driven by AI investments, which have risen year-to-date. However, the company maintains a hybrid investment model, relying on third-party capital for many initiatives, limiting the potential for exponential growth in funding.
Ahead of the earnings call, Apple shared its openness to mergers and acquisitions (M&A) as a means to accelerate its AI roadmap. This year alone, the company has acquired seven firms, though Cook noted that none were particularly large in terms of dollar amount. He mentioned that Apple is making acquisitions at a rate of about one every several weeks, reflecting a proactive approach to bolstering its AI capabilities.
Despite this new focus, Apple has faced criticism for lagging in the AI race, especially concerning AI features that have not yet materialized. The company has been accused of showcasing an enhanced AI version of Siri that wasn’t ready for launch, raising questions about their go-to-market strategies. Yet, Apple defends its careful approach, arguing that introducing poorly designed features simply to be first would be a strategic error. The company believes in ensuring that new products perform as promised before market introduction.
To date, Apple claims to have launched over 20 features under its Apple Intelligence banner, incorporating advancements in visual intelligence, cleanup functionalities, and writing tools. Notably, this year, Apple plans to introduce features such as live translation and an AI-powered workout buddy. However, enhancements to Siri, including more personalized options, have been pushed back to 2026. Cook assured investors that progress was being made on the Siri upgrade, reflecting a commitment to integrating AI meaningfully into the user experience.
On the topic of how AI could reshape the iPhone ecosystem, Cook addressed remarks made by Meta CEO Mark Zuckerberg regarding AI glasses being the future medium for technology interaction. Cook was skeptical, asserting, “It’s difficult to see a world where [the] iPhone is not living in it.” While he acknowledged the potential for new devices, he positioned them as complementary rather than substitutive to the iPhone, demonstrating a strategic vision for the device’s role in an evolving tech landscape.
When questioned about which AI technologies might become standardized or commoditized, Cook remained tight-lipped, suggesting that divulging such information would compromise Apple’s strategic positioning. This showcases the level of competitive awareness and guardedness typical of Apple’s corporate approach.
In addition to these strategic moves, Apple reported better-than-expected iPhone sales and a record revenue for Q3, resulting in a positive spike in stock prices following the announcement. This highlights the company’s ongoing success in maintaining its core business, even as it ventures into new technological territories like AI.
This article was updated after initial publication with more details from the earnings call.
Inspired by: Source
