Apple's AI Struggles: A Misguided Attack on Tim Cook's Leadership

Apple CEO Tim Cook faces attacks despite the company's progress in moving manufacturing out of China. Critics argue Apple is struggling with AI, but the company doesn't need to be a first mover in the field. Developing products in-house isn't the only way to go, and partnerships or acquisitions can help Apple transform into an AI leader quickly. Cook's leadership is still crucial to Apple's success.

Title: Apple CEO Tim Cook Faces Pressure Despite AI Challenges

Apple CEO Tim Cook has been under scrutiny despite the company's progress in moving manufacturing out of China. Critics argue that Apple is struggling with AI, but the company does not need to be a first mover in the field. Developing products in-house is not the only way to go; partnerships or acquisitions can help Apple transform into an AI leader quickly. Cook's leadership remains crucial to Apple's success.

The latest tremors came when Apple announced the retirement of COO Jeff Williams by year-end after 27 years. Just a day before, the company's top AI executive, Ruoming Pang, left to join Meta, and weeks earlier, another high-level AI researcher, Tom Gunter, also left. These departures have formed an image of a leadership exodus [1].

Apple's stock has declined by 7.2% over the past year, while the S&P has increased by 6.5% and the Nasdaq by 12.9%. This has brought some of Apple's weaknesses into the forefront, particularly the company's apparent lag behind competitors in incorporating AI into products and services [1].

Apple's AI strategy has been criticized for being behind schedule. The company introduced Apple Intelligence, a version of AI that only Apple could create, with much fanfare last year. However, it has not lived up to expectations. Apple has partnered with OpenAI for some tasks performed by Siri and has considered partnerships with Anthropic and Perplexity AI [1].

AI is a general-purpose technology that can change the world and revolutionize the business landscape. Apple's success under Tim Cook has been remarkable, with the company's value growing from about $300 billion to $3.2 trillion—a compound annual growth rate of 18.4% over 14 years. However, some analysts argue that Apple has not innovated significantly in products during Cook's tenure, focusing more on process innovation [1].

The departure of Ruoming Pang, who led Apple's AI models team, to Meta has been particularly notable. Meta offered a compensation package exceeding $200 million to attract Pang, which is significantly higher than Tim Cook's compensation package [2]. This move highlights Meta's aggressive approach to enhancing its AI capabilities by attracting top talent from rival companies.

Apple has not responded to queries about Pang's departure, but it is clear that the company is facing significant challenges in the AI space. While partnerships or acquisitions could help Apple transform into an AI leader quickly, the company must also ensure that it remains competitive in the broader tech landscape.

In conclusion, while Apple faces significant challenges in the AI space, Tim Cook's leadership remains crucial to the company's success. The company must continue to innovate and adapt to the changing technological landscape to remain competitive.

References:
[1] https://fortune.com/2025/07/12/apple-ceo-tim-cook-leadership-stock-outlook-ai-strategy/
[2] https://www.livemint.com/companies/news/meta-mark-zuckerberg-poach-openai-staff-now-gave-apple-ai-engineer-ruoming-pang-over-200-million-package-tech-business-11752127500612.html