Apple Inc., based in California, United States, is facing increasing investor pressure to revamp its artificial intelligence (AI) strategy as its share price has declined 16% in 2025. With delays in AI innovation and talent losses to rivals like Meta Platforms, stakeholders are urging bold moves—such as major acquisitions—to remain competitive in the rapidly evolving AI space.
Apple Inc., the tech giant based in Cupertino, California, is facing renewed calls from investors to overhaul its artificial intelligence (AI) approach as its shares continue to slide. In 2025 alone, Apple’s market capitalization has dropped by over $640 billion, with its stock down by 16% year-to-date, underperforming peers like Meta Platforms Inc. which are aggressively ramping up AI investments.
Investors and analysts alike are urging Apple to break with its conservative acquisition history and make bold moves to catch up in the competitive AI landscape. Despite holding $133 billion in cash and marketable securities as of March 2025, the company’s AI initiatives have so far been slow and underwhelming.
Apple’s last major acquisition was Beats Electronics in 2014, valued at $3 billion. However, sources recently reported that Apple may be reconsidering its strategy. Internal discussions have reportedly been held regarding a potential acquisition of Perplexity AI, a fast-rising AI startup recently valued at $14 billion.
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Meanwhile, competitors such as Meta Platforms have been hiring top AI talent at unprecedented compensation levels and investing billions into startups like Scale AI. Meta recently lured an Apple AI lead with a package worth hundreds of millions of dollars — a deal Apple chose not to counter.
In contrast, Apple’s AI rollout has struggled to impress. The company’s announcements at its Worldwide Developers Conference (WWDC) last month lacked groundbreaking AI features. Additionally, reports suggest Apple may rely on external AI technologies to enhance Siri in upcoming versions, signaling a possible shift away from its traditional in-house focus.
Management changes may also be underway. While CEO Tim Cook is expected to stay on, Apple is reportedly preparing for a broader leadership shake-up following the retirements of Chief Operating Officer Jeff Williams and former Chief Financial Officer Luca Maestri.
With investor confidence shaken and AI capabilities lagging, calls for a dramatic cultural shift are growing louder. Analysts warn that missing out on AI could impact Apple’s long-term growth, pushing the company to act decisively and possibly embrace acquisitions as a strategy for transformation.