Apple Fails to Dazzle With Long-Awaited Siri AI Announcement

Thirty minutes into Apple’s (AAPL) 2026 WWDC Keynote, the shares were trading higher, but as the conversation shifted to focus on the refreshed Apple Intelligence and updated Siri AI, the shares started to give back those gains and a little more.

Why Apple opted to start the keynote talking about system-level updates and improvements that should result in greater stability and ease-of-use across its platforms is a question many are pondering. From there, the keynote shifted to trust and safety updates before getting to what everyone was really interested in: the reimagined Siri AI that leverages a new set of Apple foundational models, helped by Google’s (GOOGL) Gemini.

All in all, the ensuing presentation showed off various ways across the Apple ecosystem, from devices to system software and apps, Siri AI will drive far greater utility. What was different is that, unlike past keynotes, Apple didn’t spend all that much time on each software platform, instead showcasing Siri AI’s capabilities across all of the platforms. I get it: AI Siri is something that many, including us here at the Portfolio, have been wanting to see for quite some time now.

And, with respect to Apple, that’s what is making the debut of Siri AI and the improved Apple Intelligence more “meh” than “wow.” You see, Apple first officially delayed its planned overhaul of Siri in March 2025 after initially showcasing it at WWDC 2024.

That was two years ago and a lot has happened since then, including folks using ChatGPT, Claude, Google Gemini and other AI models.

That experience, arguably, is leaving some underwhelmed with what Apple showed today. Remember, though, there was the usual build-up ahead of the event, which in some respects, just like it has in the past, makes what Apple did unveil somewhat underwhelming.

To that we can add that Siri AI will be released as a beta for users “later this year” and there will be daily usage limits on certain features. Those limits can be expanded by having an active iCloud+ subscription, which unlocks higher thresholds for advanced server-side AI requests.

And if there was any doubt, in his closing comments, Apple’s SVP of Software Engineering Craig Federighi, mentioned that Monday was a big step forward for Apple’s “journey to integrate power AI into the core of our platforms and make our products even more personal and useful.”

Federighi then went on to explain why Siri AI and Apple Intelligence will not be available in the EU and China due to privacy, security and regulatory requirements.

Such a combination explains why folks are not feeling awestruck or enthralled with what was introduced on Monday, and that is pushing AAPL shares to trade off.

It is our view, however, that as Apple releases the first public beta of its newest software platforms, which include the overhauled Apple Intelligence and Siri AI across iOS, iPadOS, macOS, and its other platforms, that will tell us whether these new offerings are winning over users or are falling flat. Those public betas are expected to be released “next month,” which likely means before Apple reports its June quarter results.

Will we see a complete version of Apple Intelligence and Siri AI in the initial beta release? Probably not, is our thinking. When Apple Intelligence was introduced, each successive beta release brought additional capabilities and, in some cases, refreshed ones that had already been released.

With the learnings of the keynote now a “known known,” and memory capacity constraints likely to restrain smartphone volumes, we’re reiterating our Two rating on AAPL shares at least until we see what’s in the upcoming public beta software releases. With AAPL shares back below $305, we’ll also reiterate that target price and continue to track smartphone shipment data. As we track those and other developments, we’ll keep a close watch on our AAPL pickup point at $280. And if we see a reason to change that level, we’ll be sure to communicate the decision and the reasons behind it to you.

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At the time of publication, TheStreet Pro Portfolio was long AAPL and GOOGL shares.