Apple CEO Tim Cook Says iPhone Remains Central to Future Tech Amid AI Device Development

Apple CEO Tim Cook downplayed the threat of screenless AI devices, saying they are complementary to the iPhone. Former design chief Jony Ive is working with OpenAI on AI hardware. Cook emphasized the iPhone's central role in users' lives and its ability to perform various tasks. He also acknowledged the potential competition from Ive's new device. Apple reported Q3 revenue of $94 billion, beating expectations, but faced criticism for lagging in generative AI.

Apple Inc. (AAPL) continues to navigate the complexities of the AI landscape, with CEO Tim Cook downplaying the threat of screenless AI devices while acknowledging the potential competition from former design chief Jony Ive's new venture with OpenAI. Apple reported a robust Q3 revenue of $94 billion, surpassing expectations, yet faced criticism for lagging in generative AI [1].

Cook emphasized the iPhone's central role in users' lives, highlighting its ability to perform various tasks. He also acknowledged the potential competition from Ive's new device, which is expected to be unveiled next year [2]. Apple's strategy involves a balance between innovation and privacy, a key differentiator in the competitive tech landscape.

Apple's AI strategy is characterized by a significant increase in capital expenditure (CapEx), aggressive mergers and acquisitions (M&A), and internal resource reallocation. In the June 2025 quarter, CapEx surged to $3.46 billion, with projections indicating an annual CapEx of $14 billion by year-end [2]. Apple's M&A appetite has also intensified, with the company acquiring several AI-focused startups in 2025.

While Apple's AI ambitions face stiff competition from rivals like Google, Meta, and Microsoft, the company's unique value proposition lies in its end-to-end ecosystem and privacy-centric approach. Apple's Apple Intelligence features, such as content summarization and visual redesigns for Siri, have been met with mixed expectations, with analysts noting the lack of a "super cycle" in iPhone sales driven by AI features [1].

Despite the challenges, Apple has a strong foundation with high user satisfaction and a robust installed base. Analysts predict that Apple's AI competition will likely come from Google's Android devices and AI-powered gadgets, which may not include screens. However, even Google CEO Sundar Pichai expects phones to remain central for the next two to three years [1].

Apple's strategic shift towards AI is a calculated move to close the gap with AI-first rivals and maintain its competitive edge. The company's focus on hybrid infrastructure and privacy-centric AI features positions it to navigate the evolving tech landscape effectively. As Apple continues to invest in AI, it will be crucial to monitor its progress and assess its ability to compete in the AI hardware market.

References:
[1] https://www.cnbc.com/2025/07/30/apple-ai-hardware-devices.html
[2] https://www.ainvest.com/news/apple-strategic-shift-ai-assessing-long-term-aggressive-investment-competitive-tech-landscape-2508/