Apple seems to be taking action on its AI plans, as Tim Cook disclosed on the company’s Q3 2025 earnings call that the tech firm is making a “significant” investment in AI, reinforcing its effort to weave technologies throughout its ecosystem. Cook noted Apple’s long-standing position on AI technologies, stating, “We believe AI is one of the most transformative technologies of our generation.” He further elaborated that “We’re integrating it throughout our platforms, devices, and services—and we’re expanding our AI investments substantially.”
Relative to advanced AI technologies, Cook stated Apple is in the process of reallocating company-wide personnel, which has been termed as a talent optimization strategy. He reinforced the company’s investment into artificial intelligence, “We have a world-class team and we’re putting our full energy behind this initiative.”
Shifts in Strategy and Increase in Spending
Cook’s recent pronouncement is a surprising and rather welcoming one, as Apple has countered its stagnant investment spending with an increase in capital expenditures owing to its AI focus. He noted that the stiff increase in capital spending has been offset by strong reliance on third-party suppliers, a statement Apple has become known for.
While Apple continues to develop its internal capabilities, the company remains open to acquiring external innovations and capabilities to further aid its operations. Apple reported having acquired seven firms in 2025. These acquisitions, however, labelled as low-value, “don’t require massive amounts of spending,” as Apple’s CEO Cook describes. Further, he corroborated the company’s position on the aggressive merger and acquisition strategy stating, “We’ve been acquiring companies every few weeks,” which supports the idea and increased investments the company is making to achieve its AI objectives.
In recent months, Apple received feature rollout complaints, with strong criticism directed towards the company as a whole, and more specifically, for the presentation of the new version of its AI-powered virtual assistant, Siri.
Putting aside the criticism, Apple continues to work on its AI systems which Cook mentions, “the company moves at a slower pace, for the sake of product quality,” stating, “Rushing out products just to be first doesn’t align with our values,” and further adding, “We want to launch features that work seamlessly and add value to the ecosystem.”
In spite of the criticism, Apple made over twenty new feature releases related to AI, coining the term “Apple Intelligence” to brand proprietary features. Some of the features are advanced editing of visual and textual elements and sophisticated content generation capabilities.
By 2025, users can look forward to a more advanced product offering which includes a fitness coach powered by AI, and translation services, including real-time language translation. More personalized shifts towards the year 2026, but “the upgraded Siri experience” will remain on hold until then. Although “an AI-fueled Siri” will be able to offer far more sophisticated updates, Cook has assured investors the implementation timeline is on track.
The Upcoming iPhone and New AI Devices
The iPhone is still a cornerstone to Apple, and Cook is not considering the introduction of AI accessories, including AR glasses, as a threat to the iPhone’s continued popularity.
“It’s hard to imagine a future without the iPhone at the center of it,” he stated. “We’re certainly exploring other form factors, but any new AI devices will likely complement the iPhone, not replace it.”
Unlike Meta’s CEO Mark Zuckerberg, who offered the contrarian use case of AI glasses potentially becoming a focal point of a user’s experience, Cook would prefer to rely on a more diversified, integrated, and interconnected vision.
Record iPhone Sales and a New Hope for the Market
Apple has exceeded expectations for iPhone sales and revenue for Q3, further driving their stock up in after hours trading. Furthermore, the record-high revenue on iPhone sales has bolstered stock performance. This growth bodes well for the company as they continue moving towards an AI-integrated framework.
Apple continues to cement itself as a primary stakeholder in the emerging AI economy, everything from purposeful tech integrations and purposeful product line expansions appear aimed to achieve this. Through calculated acquisitions, purposeful product line expansions, and their penchant for in-house tech integration, Apple continues to broaden their impact.