Apple urged to avoid 'BlackBerry moment' in AI: analysts

Despite Apple's recent $100 billion commitment to US manufacturing, Wedbush analysts caution that the company's "invisible AI strategy" risks a "BlackBerry Moment" if not addressed swiftly. They recommend Apple acquire Perplexity, integrate external AI talent into management, and fully embed Google's Gemini AI to effectively leverage its 2.4 billion iOS devices and catch up in the AI race. This critical assessment comes as Apple shares have declined 9% year-to-date in 2025.

Analysis

While Apple's $100 billion commitment to US manufacturing has successfully mitigated near-term political and tariff risks with the Trump administration, a significant strategic overhang remains concerning its artificial intelligence capabilities. Wedbush analysts articulate a strongly negative view, warning of a potential "BlackBerry Moment" due to a perceived "invisible AI strategy" that leaves the company lagging in a critical technology cycle. This sentiment is underscored by the stock's 9% year-to-date decline in 2025. The analysis posits that Apple is passively observing the AI revolution rather than participating, putting its future growth at risk. To avert this, Wedbush proposes three decisive actions: a strategic acquisition of Perplexity for over $30 billion to redefine its AI search capabilities, a management shake-up to inject external innovation talent, and a full integration of Google's Gemini AI into the iOS ecosystem despite potential regulatory hurdles. The core investment thesis hinges on whether Apple can leverage its massive installed base of 2.4 billion iOS devices to monetize AI, a feat analysts believe requires these immediate and substantial strategic shifts.

Key Decisions for Investors

• Investors should monitor for any announcements regarding a definitive AI strategy, as the current lack of clarity is identified as the primary overhang on the stock, contributing to its year-to-date underperformance.
• A potential acquisition of Perplexity or a formal, deep integration of Google's Gemini AI should be viewed as significant positive catalysts that could signal a strategic shift to address the current AI deficit.
• Given the contrasting sentiment where Google is positioned as a solution to Apple's problem, consider the relative performance and strategic positioning of AAPL against key AI infrastructure players like Google.
• Pay close attention to any management changes or the hiring of prominent external AI talent, as this would be a direct response to analyst criticism that the current leadership is failing to innovate at the required pace.