Apple Management Reshuffle As Company Overhauls AI, Siri Strategy

Apple Management Reshuffle As Company Overhauls AI, Siri Strategy

  • 21.03.2025 03:39
  • channelnews.com.au
  • Keywords: AI, Siri

Apple is reshuffling its leadership amid AI challenges, with CEO Tim Cook losing confidence in John Giannandrea's product development. Mike Rockwell will lead Siri, while delays in AI features and Siri updates have hurt sales and market share. The company faces growing pressure as competitors like Samsung and Google outpace its AI advancements.

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Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Struggling with AI and Siri developments leading to delayed product launches and market share decline.

John Giannandrea

Negativesentiment_dissatisfied
Analyst rating: N/A

Lacked confidence in his abilities, leading to management changes.

Mike Rockwell

Positivesentiment_satisfied
Analyst rating: N/A

Brought in to help overhaul AI and Siri strategy.

Craig Federighi

Neutralsentiment_neutral
Analyst rating: N/A

Still in role but not specified as having influence on the outcome.

Paul Meade

Positivesentiment_satisfied
Analyst rating: N/A

Taking over Vision Products Group, which could stabilize Apple's hardware efforts.

Samsung

Positivesentiment_satisfied
Analyst rating: N/A

Competitor with advanced AI tech, highlighting Apple's lagging progress.

Google

Positivesentiment_satisfied
Analyst rating: N/A

Competitor with advanced AI tech, highlighting Apple's lagging progress.

Counterpoint

Neutralsentiment_neutral
Analyst rating: N/A

Provided market data but no direct influence on the story.

Robby Walker

Negativesentiment_dissatisfied
Analyst rating: N/A

Critics delays as 'ugly' situation, impacting Apple's reputation.

Context

Analysis of Apple Management Reshuffle and Market Implications

Management Changes

  • Mike Rockwell, creator of the Vision Pro, will lead Siri and report to Craig Federighi, removing Siri from John Giannandrea’s oversight.
  • John Giannandrea is stepping down as AI head due to Tim Cook's loss of confidence in his product development abilities.
  • Paul Meade will take over the Vision Products Group under Rockwell.

AI and Siri Challenges

  • Apple’s AI efforts have stumbled, with delays in rolling out features announced last June.
  • The Apple Intelligence platform, a key feature of the iPhone 16, was delayed and released in a staggered rollout (e.g., Australia in December). It remains unavailable in China due to regulatory hurdles.
  • A new AI-version of Siri is now expected only in the “coming year”, with updates including ChatGPT integration and personalized features.

Market Performance

  • Apple smartwatch shipments dropped 19% in 2024, falling to a 22% market share (down from 25% in 2023).
  • iPhone sales in Q4 of the US 2025 financial year declined 1%, with revenue reaching A$111.16 billion.
  • The lack of major hardware innovations in the iPhone 16 and failure to create a compelling use case for Apple Intelligence have contributed to declining sales.

Competitive Landscape

  • Apple lags behind rivals like Samsung and Google in AI technology development and implementation.
  • Internal criticism from senior manager Robby Walker highlights the urgency of addressing AI challenges.

Share Price Impact

  • Apple’s share price has dropped 12% since January 2024, trading at around $214.1 (A$340) as of the latest update.

Long-term Implications

  • The delay in AI and Siri updates could harm Apple’s reputation for innovation and market leadership.
  • Regulatory hurdles in China may further delay AI platform adoption in one of Apple’s largest markets.
  • The reshuffle signals a strategic pivot, but execution will be critical to regain competitive momentum.

Strategic Considerations

  • Bringing Mike Rockwell into AI/Siri oversight suggests a focus on hardware-software integration and consumer-facing AI features.
  • The shift underscores the importance of accelerating AI development to compete with Google’s Generative AI and Samsung’s advancements.