In recent shifts to its organizational strategy, Apple Inc. has begun to disband its unified AI and machine learning division, moving parts of the team to other company sectors. As reported by Bloomberg, the restructuring highlights the company’s evolving approach to artificial intelligence and its urgent need to overcome lagging performance in this critical technology sector. These changes come amid broader industry shifts, including Meta’s ambitious plans to release smart glasses with a display by October 2025, and new revelations about Apple’s ongoing efforts to diversify its manufacturing, particularly in India.
Apple’s AI and Machine Learning Structure Faces Challenges
Apple’s foray into AI underwent significant restructuring starting in 2018 when the company recruited AI executive John Giannandrea from Google to centralize its AI operations under one leadership. However, more than six years later, the strategy is being reconsidered. Despite the initial push to consolidate AI teams across various divisions such as hardware, software, and self-driving car projects, Apple’s AI initiatives—most notably Siri and Apple Intelligence—have failed to match the pace of competitors like Amazon and Google.
As part of this shift, Apple began reassigning AI-related functions away from Giannandrea’s oversight. In March 2024, control of Siri was transferred to Mike Rockwell, a key figure behind the Vision Pro headset. Meanwhile, the company also moved its robotics team—working on futuristic products like mobile robots and humanoid devices—under hardware engineering, signaling a return to Apple’s functional organizational structure, where teams focus more on hardware and software rather than consolidated product divisions.
This realignment highlights Apple’s struggle to compete in the AI field, as it faces growing competition and increasing pressure to deliver cutting-edge AI-powered features and products. Bloomberg reports that Giannandrea’s future at Apple may be uncertain, with speculation that his departure could lead to even further integration of AI responsibilities into the software engineering department.
Meta Races to Launch Smart Glasses
Meta Platforms, a rival in the wearables market, is moving swiftly to release its own smart glasses featuring a display. The company’s new product, which is expected to retail for over $1,000, will include a small display allowing users to access simple apps and view photos taken with the device. This launch is significant as Meta seeks to capitalize on growing demand for wearable tech, despite potential delays. With an October 2025 release date looming, Meta has accelerated its efforts, even working through weekends to meet the deadline.
Apple’s much-anticipated smart glasses, codenamed N50, are still in development and remain far from a market release. These glasses will likely feature Apple Intelligence capabilities, providing information to users based on their surroundings, though they will not offer full augmented reality experiences. Apple’s slow pace in launching such products is surprising, given its strengths in miniaturization and design, particularly in the wearables market with products like the Apple Watch and AirPods. Meta’s current dominance in the smart glasses market raises questions about why Apple has not yet capitalized on this opportunity.
Apple’s Production Shift to India
Apple’s strategy to reduce its reliance on China has gained momentum, particularly in the wake of the US-China trade war. As reported by Bloomberg, Apple is ramping up its iPhone production in India to avoid tariffs on goods imported from China. The company now produces approximately one-third of its US-bound iPhones in India, with plans to expand this capacity over the next few years. By 2027, Apple aims to manufacture the majority of its iPhones for the US market in India, although the transition remains uncertain due to shifting tariff policies and challenges associated with scaling production outside of China.
While Apple’s production in India has reached parity with China in terms of iPhone quality, more complex devices, such as upcoming foldable iPhones and a new Pro model, may still require production in China. This underscores the complexities of global supply chains and the company’s long-term strategic goals.
Apple Watch’s Blood-Oxygen Monitoring Feature Still Missing in the US
Apple is facing a backlash in the United States after a legal dispute with medical technology company Masimo Corp. led to the removal of the blood-oxygen feature from new Apple Watch models sold in the country. The feature, which was introduced in the Apple Watch Series 6 in 2020, has become a staple for users monitoring their health. However, Apple’s decision not to resolve the patent dispute quickly has left US customers without a key health feature.
This move contrasts with Apple’s position as a leader in health technology, as the company touts its wearables as crucial tools for personal health management. The omission of the blood-oxygen monitoring feature could affect consumer confidence, especially as competition in the wearables market heats up with companies like Oura Health.
Looking Ahead
As Apple prepares to release its earnings next week, analysts will be closely watching how the company addresses its ongoing challenges, including tariffs, supply chain changes, and the growing competition in AI and wearables. CEO Tim Cook is likely to face tough questions regarding these strategic shifts, particularly in light of the company’s ambitious goals for India-based iPhone production and its slow response to the wearables market.
With new products on the horizon, including a thinner iPhone 17 and potential successors to the Vision Pro, Apple’s ability to adapt and innovate in these competitive areas will be crucial for maintaining its dominant position in the tech world. As Bloomberg reports, the coming months will likely reveal whether the company can overcome its internal challenges and compete effectively with rivals like Meta.
