AAPL Stock Back Down As Apple Restructures AI Leadership After Siri 2.0 Delay

Apple’s AI Shift and Market Impact

Apple is undergoing a major AI leadership shakeup as it looks to enhance Siri and iPhone AI capabilities. This decision comes after the company delayed its highly anticipated Siri 2.0 update indefinitely, sparking concerns among investors. As a result, Apple’s stock has continued its decline, dragging major US indices lower, with both the S&P 500 and NASDAQ slipping into negative territory.

Apple Stock Performance Amid AI Uncertainty

Apple shares have been under persistent selling pressure since reaching a high of $260 in December. However, this week’s selloff has been particularly sharp, with AAPL losing nearly $30 (-13%).

• Apple stock is currently trading at $213.08, down $1.16 (-0.7%), after briefly rising to $217.49 earlier in the session.
• Shares have declined 14.4% year-to-date, hitting a new yearly low of $208.42.
• The 200-day SMA (purple) at $210 has acted as support, aligning with the 50% retracement level from the April 2024 low.

Leadership Overhaul and Strategic Shift

As part of the AI restructuring, Apple has appointed Mike Rockwell, a Vision Pro specialist, to lead Siri’s development. Reports suggest that Tim Cook lost confidence in the AI team, leading to the leadership shakeup.

• Apple aims to revamp its AI strategy and strengthen its Siri and AI-powered assistant projects.
• The restructuring follows growing competition in the AI sector, with rivals like Google and Microsoft making significant advancements.
• Additionally, EU antitrust regulators have increased pressure on Apple, ordering the company to improve access for competitors in its ecosystem.

Market Reaction and Broader Impact

Apple’s AI struggles and stock decline have contributed to a broader market pullback.

• NASDAQ fell below 17,700, down 53 points (-0.3%), after initially gaining 153 points.
• S&P 500 dropped to 5,669.77, losing 15 points, after earlier gains of 35.86 points.

Conclusion

Apple’s delay of Siri 2.0 and AI restructuring signal a critical moment for the company, as it faces internal challenges, competitive pressure, and regulatory scrutiny. Investors are closely watching how Apple navigates its AI transition, as the stock remains under pressure with key support levels approaching. The coming weeks will be crucial in determining whether Apple can restore investor confidence and stabilize its stock price.