Apple Finally Released A Brand-New Siri. Then Its Share Price Cratered.

The market is not punishing AI capability here; it is repricing the gap between narrative and monetization. The core issue is timing: a beta that effectively pushes broad relevance into 2027 turns this from a near-term product catalyst into a multi-year proof-of-execution story, and that compresses the present value of any services uplift sharply. In practice, the stock is now more sensitive to every incremental disappointment because the valuation already embeds a flawless AI transition.

Second-order, Google is the cleaner relative winner in the near term. If Gemini is quietly providing key functionality, it reinforces Google’s model leadership while Apple retains the premium consumer interface and distribution risk — an unusual asymmetry that weakens Apple’s negotiating leverage over future AI economics. The bigger loser may be the ecosystem narrative around App Store/services acceleration: if assistant-driven monetization slips 12-18 months, suppliers and developers tied to a faster AI refresh cycle likely see deferred demand, not cancelled demand.

The setup creates a classic “show-me” overhang with an identifiable catalyst stack: ship-date specificity, regional approvals, and whether Apple can prove the assistant materially changes device usage rather than just user satisfaction. Near-term downside can persist for weeks as quant and momentum investors de-risk from a high-multiple name with deteriorating credibility on guidance. The contrarian view is that the move could be partially overdone if investors confuse delay with failure; Apple only needs to preserve optionality and keep hardware replacement cycles intact for the stock to stabilize, but that requires evidence, not promises.