quickutilities – Apple CEO Tim Cook announced a significant increase in the company’s investment in artificial intelligence during the latest earnings call. He highlighted that Apple is embedding AI across its devices, platforms, and internal teams. Cook confirmed that a “fair number” of employees are being reassigned to focus on AI-related projects.
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This announcement came as Apple revealed strong financial results for the third fiscal quarter of 2025. The company reported $94 billion in revenue, a 10% increase year-over-year, exceeding expectations. Despite this success, Apple has faced criticism for its slow AI development, notably with the delayed and underwhelming AI features in Siri.
In recent months, Apple reportedly lost several AI engineers to competitors such as Meta, fueling concerns about its pace in the AI race. Nonetheless, the company’s renewed focus signals its commitment to catching up. Apple has already made seven acquisitions this year, though none have been major deals.
Cook stated, “We’re open to M&A that accelerates our roadmap,” signaling a willingness to acquire companies that enhance Apple’s AI capabilities. Though he did not reveal specific targets, Bloomberg reported in June that Apple was considering buying AI search startup Perplexity. Additionally, rumors have surfaced about potential partnerships with Anthropic or OpenAI to improve Siri, but Apple has not confirmed these. Meanwhile, Apple continues developing new Siri features expected to launch in 2026, demonstrating a longer-term strategy for AI integration.
Apple Faces Tariffs and Plans Future Product Launches
Besides AI advancements, Apple addressed other business factors during the earnings call. Cook revealed that tariffs have cost the company $800 million in the past quarter. If tariffs remain unchanged, Apple expects an additional $1.1 billion expense between July and September.
This coming quarter will likely include the launch of the iPhone 17 series and potentially other new devices. Apple also celebrated record participation in its developer betas for iOS 26, macOS 26, and iPadOS 26, marking its most popular trials to date.
A significant milestone was also shared: Apple became the second company ever to sell over three billion phones. Analysts estimate Samsung reached this figure between 2014 and 2024 but believe Samsung’s total sales exceed Apple’s when including earlier years.
Overall, Apple’s increased AI focus, strategic acquisitions, and ongoing product innovation reflect its plan to maintain market leadership. While challenges like tariffs and stiff competition remain, the company appears poised to leverage AI and new technologies for future growth. This balanced approach highlights Apple’s commitment to both innovation and operational resilience as it navigates a competitive tech landscape.
