Apple's AI Strategy Costs $630 Billion in Market Cap: Investors Want The Company To Look At Acquisitions

Benzinga
2025.07.15 06:45
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Apple Inc. has lost approximately $630 billion in market value in 2025, prompting investors to push for a change in its AI strategy. The company's shares have dropped by 14.45% this year, while competitors like Meta thrive due to their AI investments. Investors are urging Apple to consider significant acquisitions in the AI sector, as its last major deal was in 2014. Recent events, including a lackluster Worldwide Developers Conference, have heightened frustrations over Apple's minimal AI updates. Discussions about acquiring AI startup Perplexity AI are reportedly underway.

Apple Inc. AAPL is under growing pressure from investors to overhaul its artificial intelligence strategy, after a sharp decline in its share price this year.

Check out the current price of AAPL stock here.

What Happened: Apple has lost approximately $630 billion in market value in 2025, with investors increasingly frustrated over the company's perceived lag in AI innovation, Bloomberg reported on Monday.

Investors are now urging Apple to depart from its conservative M&A approach and consider substantial acquisitions in the AI space.

“Historically, Apple does not do big mergers and acquisitions,” said Atif Malik, an analyst at Citigroup Inc., noting that Apple's last major deal was its $3 billion acquisition of Beats in 2014. However, he believes investor sentiment would improve if Apple were to buy or take a significant stake in a well-established AI company.

Apple’s shares have plummeted by 14.45% this year, while its competitors, such as Meta Platforms Inc. META, are thriving due to their substantial investments in AI.

The company's lack of compelling AI features within its device ecosystem has become a major sticking point for investors.

Why It Matters: In February 2025, it was reported that Apple and Meta are in a race to develop AI-powered humanoid robots.

Investor frustration deepened last month following the underwhelming Worldwide Developers Conference (WWDC). Critics noted the absence of major AI updates, particularly a delayed Siri overhaul. Bloomberg's Mark Gurman described the event's AI showing as "startlingly minimal."

Last month, Apple’s Worldwide Developers Conference ended up being underwhelming, leading to investor concerns. The market's response indicated that the minor updates and postponed revamp of Siri didn't resonate well. Bloomberg's Mark Gurman described the absence of "any real new AI features" as "startling."

Despite having the resources, Apple has been hesitant to make significant acquisitions in the AI space. That may soon change, with internal discussions underway regarding a potential acquisition of AI search startup Perplexity AI.

Apple’s recent leadership changes have also sparked discussions about the company’s future direction.

Price Action: Apple closed Monday at $208.62, down 1.20%, and fell further to $208.01 in after-hours trading, according to Benzinga Pro.

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