Even before President Trump’s tariff threatened to present Apple manufacturing work in China, the company’s struggle to make new products was leading some people inside its luxurious headquarters in Silicon Valley to wonder whether the company had lost its magic in one way or another.
The customs duties, which were presented on April 2, caused the Apple $ 773 billion in the market value in four days and lost its position for a short period as a company publicly trading in the world. But investors have already started exposure to the company, as they sent the price of its share by 8 percent in the first four months of the year, and doubled the S&P 500 decrease.
Apple was hoping to revive its wealth over the past year with virtual reality headphones, The Vision Pro, and an artificial intelligence system called Apple Intelligence. The headphones sales were disappointed, and the features of signing the artificial intelligence system were postponed because it did not succeed as the company expected.
The company’s issues confirmed how its reputation in innovation, which was once considered an essential element in its trademark, became Qatar, and feeds the anxiety between employees and frustration among customers. Those who know the company away from the fact that Apple, despite its years of its profits that challenge gravity, are disrupted through political fighting, a penny disk and talent depletion that often large companies, according to more than ten employees and former and current advisers.
Apple refused to comment.
A decade has passed since the latest commercial successes in Apple: Apple Watch and AirPods. Its services like Apple TV+ and Fitness+, which she provided in 2019, fails to compete in subscriptions. Half of its sales are still from iPhone, a 18 -year -old product that has been gradually improved almost every year.
Although Vision Pro sales were disappointing, Apple’s problems are with Apple intelligence An exposed dysfunction within the organization.
In a video of nearly two hours last summer, Apple explained how the artificial intelligence product summarizes the notifications and provides writing tools to improve emails and messages. It also revealed an improved assistant for Siri Virtual that can combine information on the phone, such as a message about a person’s travel path, with information on the web, such as the time of the flight.
Artificial intelligence features were not available when new iPhone devices were shipped. They arrived in October, late about a month, and they made a problem quickly. Blind summaries distorting news reports, which leads to Apple Disable this feature. Then, last month, the company postponed the Spring version of the improved Siri because the internal test was found that it was inaccurate in nearly a third of the requests.
After this delay, Craig Vidrigi, the head of Apple programs, told the employees that the company will work to modify its executives, removing the responsibility for developing the new Serie from John Jiandria, the company’s head of artificial intelligence, and giving it to Mike Rockeel, head of professional vision headphones.
“Apple needs to understand what happened because this is greater than just rearranging the deck chairs,” said Michael Gartentberg, a technology analyst who previously worked as a product for the Apple product. “If there is an example of excessive wrapping and low, then this is the intelligence of Apple.” This was the first time in years that Apple had not shipped its product.
Some details have been reported about Apple’s changes in the Siri team and the challenges before Bloomberg and Information.
Artificial Intelligence was set in early 2023. Mr. Jianundria, who was overseeing the effort, requested the CEO of the company, Tim Cook, to buy more artificial intelligence chips, known as graphics processing units, or graphics processing units, five people said to know the demand. Chips, which can perform hundreds of accounts at the same time, are essential to building nerve networks for artificial intelligence systems, such as Chatbots, which can answer questions or write a program code.
At that time, Apple Data Centers had about 50,000 graphics processing units that were more than five years old – much less than hundreds of thousands of chips that are purchased at the time by artificial intelligence leaders such as Microsoft, Amazon, Google and Meta, these people said.
Mr. Cook agreed to a plan to double the team’s chip budget, but Apple’s finance president, Luka Maysty, reduced the increase to less than half of that, people said. Mr. MASTRI encouraged the team to make chips that were more efficient.
Two people said that the lack of graphics processing units means that the team that develops artificial intelligence systems had to negotiate the computing power in the data center of its service providers such as Google and Amazon. The leading chips that NVIDIA made in demand that Apple used alternative chips made by Google to develop artificial intelligence.
At the same time, three people said this effort. Ruby Walker, who supervised Siri and Sebastian Marino Miss, the first executive director of the software team, struggled with who will face the responsibility of some aspects of the project. Both ended with pieces of the project.
Infighting followed a wider talent migration than Apple. In 2019, Jony Ive, the company’s chief designer, left for its design company and stealing more than ten of the integrated Apple designers and engineers. Dan Riccio, the company’s long -term president to design the product that worked in Apple Watch, retired last year.
In place, I left Apple with old and renewed leaders with less experience in developing the product. Mr. Jiandria, from Join the company in 2019 From Google, you never led the launch of a high -level product like improved Siri. Mr. Federigi, his counterpart, who supervises his program, has never led the creation of a new operating system like some of his predecessors in this role.
Mr. Cook, 64, who has a background in operations, said over the years to provide clear and direct guidance on the development of products, that three people are familiar with the way the company operates.
“It is clear that it is clear that the details of leadership, communication and internal operations are clear,” said Benedict Evans, an independent analyst who was previously working as a capitalist in Andrink Horwitz.
Apple Siri did not cancel the renovated. The company plans to issue a virtual assistant in the fall capable of doing things like editing and sending a picture to a friend upon request, three people said he was aware of his plans.
These people said that some Apple leaders do not believe that the delay is a problem because any of the Apple competitors, such as Google and Meta, have discovered artificial intelligence so far. They believe that there is time to get it properly.
With the passage of Siri, Apple will defend the current palaces of the assistant. Last month, customers filed a federal lawsuit accusing Apple of wrong ads. Since then, her commercial ads about Siri have become dark.
Brian X. Chen contributed to the reports.
Tripp Mickle reports on Apple and Valley Silicon for the Times based in San Francisco. Its focus on Apple includes the launch of products, manufacturing issues and political challenges. It also writes about trends through the technology industry, including workers’ demobilization, the Toulidi AI and robot taxis.
Pamphlet What is wrong with Apple? First appear on New York Times.