Apple faced mixed results in June with a blockbuster movie hit and AI struggles.
The company’s new film F1 smashed the box office, earning over $155 million its opening weekend. It’s Apple TV+’s first major summer blockbuster, boosted by heavy marketing. Tim Cook waved the chequered flag for Max Verstappen at the U.S. Grand Prix, and Apple used its Wallet app to push ticket discounts. Big names like Brad Pitt and Lewis Hamilton showed up for premieres and promos.
This win proves Apple’s ability to invest long-term in entertainment and get major star power behind its services business. Apple TV+ launched in 2019 with little fanfare, but F1 signals Apple is ready to play big in Hollywood. 
On the AI front, things look different. At WWDC, Apple’s AI updates fell flat. The company showed minor machine learning tweaks but no major overhaul to Siri. Apple had touted a major Siri upgrade for 2024 but delayed it to 2026. Wall Street is worried Apple’s AI is lagging far behind Google, OpenAI, and Anthropic.
Recently, Bloomberg reported Apple’s considering ditching its own AI models for Siri in favor of Anthropic or OpenAI’s engines. This would mark a big departure from Apple’s tradition of owning its core tech.
Needham analyst Laura Martin said on CNBC:
"The three-year problem, which is within an investment time frame, is that Android is racing ahead."
Apple’s AI hiring has been quiet, even as rivals like Meta and Google pour billions into talent. Apple has yet to show it can keep pace.
Jefferies noted after WWDC:
"Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view."
Apple’s big hit F1 contrasts sharply with mounting pressure on its AI efforts.
Watch: Jefferies upgrades Apple to "Hold"
