Apple CEO Tim Cook calls artificial intelligence an even greater revolution than the internet and smartphones, claiming that Apple must act quickly to lead this transformational era. Speaking at a rare all-hand meeting on Apple's Cupertino campus following the company's latest revenue report, Cook laid out the decisive roadmap that puts AI at the heart of Apple's future.
“Apple has to do this. Apple does this. It's like ours,” Cook said, highlighting the urgency of the company approaching AI. “We're going to invest in doing that.”
Cook resembles the previous technological shift, acknowledging Apple's historic pattern of entering the market slower than its competitors, but ultimately rebuilding it with a better product. “We were rarely the first,” he said. “I had a PC in front of the MAC. I had a smartphone in front of the iPhone. I had a lot of tablets in front of the iPad. I had an MP3 player in front of the iPod. This is how I feel about AI.”
While Apple has lagged behind rivals like Openai, Alphabet and Microsoft when it comes to exposing AI features, Cook is confident in the company's approach. Introduced last year, Apple Intelligence faced delays that affected the deployment of the iPhone 16, but cooking downplayed timeline issues and reaffirmed Apple's commitment to providing a best-in-class solution. “If we don't, we'll be left behind and we can't do that.”
The CEO also highlights internal efforts, with 40% of the 12,000 new employees that Apple has adopted over the past year under research and development, with many focusing on AI. This push includes in-house chip development, particularly the new Ai-Optimized Cloud Chip CodeNamed Baltra, led by Johnny Sruji. Additionally, Apple has set up a dedicated AI server facility in Houston, demonstrating the seriousness of scaling its AI infrastructure.
Cook also addressed the company's openness to AI-related mergers and acquisitions. The report suggests that Apple is considering acquiring companies such as Perplexity, AI search engines and French startup Mistral AI as part of its acceleration strategy.
Beyond AI, the conference covered other strategic areas. Cook acknowledged the ongoing challenges from US tariffs and estimated the impact of $1.1 billion this quarter. Despite regulatory headwinds, especially in Europe, he noted that App Store revenues had risen by strong double-digit margins in the last quarter.
Retail expansion remains a priority. Apple is set to open new outlets in India, the UAE and China this year, with Saudi Arabia scheduled for a debut location next year. “We need to be in more countries, especially we see that we're entering more emerging markets,” says Cook, ensuring that Apple continues to invest in established regions as well.
Cook concluded by reaffirming that Apple focuses on the challenges of navigating environmental commitment, Apple TV+ growth, and global technology regulations. “Big technology is undergoing a lot of scrutiny around the world,” he said, sought clarity in regulations that do not compromise user experience, privacy or security.
