Apple Faces Scrutiny Over AI Delays and iPhone Sales Drop

San Francisco, CA – Apple Inc. is under increasing pressure as it faces a lawsuit from shareholders and declining iPhone sales. The lawsuit, filed in a federal court in San Francisco, claims that the company misled investors regarding the integration timeline of AI features into its Siri digital assistant, impacting both sales and stock prices.

According to analysts, recent previews of iOS 26 show that the updates are mostly cosmetic, and the company’s AI strategy continues to lag behind competitors. With forecasts for iPhone sales already reduced, many consumers are holding onto their phones longer, contributing to a decline in demand.

Additionally, Apple has agreed to a $490 million settlement with investors regarding claims that CEO Tim Cook provided misleading information about decreasing iPhone demand in China back in 2018. This development comes as attention remains focused on the company’s upcoming AI offerings.

Despite the criticism, Apple is rumored to be planning a thinner iPhone Air and standard hardware upgrades. However, it may not be enough to rejuvenate interest in its products. As competition in artificial intelligence heats up, the company is expected to enhance Siri’s capabilities significantly.

After the last developer conference in June, which failed to impress investors due to lack of substantial AI updates, Apple’s stock has seen a 20% decline this year. Currently, the stock holds a consensus Moderate Buy rating from 29 Wall Street analysts.

As Apple navigates these challenges, analysts are eagerly awaiting the next major product announcements, including the highly anticipated iPhone 17. Reports suggest that significant innovations may be expected in the iPhone 18 series, scheduled for release in 2026, as Apple seeks to recover its footing in a competitive market.