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Apple (AAPL) has long been celebrated as the gold standard of innovation, with products like the iPhone, iPad, and MacBook reshaping consumer technology over the past two decades. However, in today’s rapidly shifting tech landscape, even Apple faces the risk of being left behind.
The rise of generative artificial intelligence (AI) has kicked off a new era that analysts call the most transformative trend in nearly 40 years — one that has already seen Big Tech rivals like Microsoft (MSFT), Alphabet (GOOGL), and Meta (META) pour billions into research, acquisitions, and talent recruitment. For many on Wall Street, the question is no longer whether AI will redefine the future of technology, but whether Apple can adapt quickly enough to secure its place in that future.
Wedbush Securities tech bull Dan Ives, a longtime Apple watcher, has raised a stark warning: Without decisive action, Apple could face what he calls its own “BlackBerry moment.” For context, BlackBerry (BB) was once a titan of the mobile phone industry, only to collapse after failing to keep pace with the iPhone’s disruptive innovation.
To avoid a similar fate in the age of AI, Ives argues that Apple must step up its game dramatically.
The message is clear: Apple cannot afford to sit idle on a park bench “drinking lemonade” while competitors race ahead in Formula 1 speed. With that, let’s take a closer look at the three bold steps Ives suggests Apple must take to stay competitive in the AI revolution.
About Apple Stock
Founded in 1976, tech giant Apple (AAPL) has consistently set the benchmark in the technology sector. The company’s lineup includes flagship products like the iPhone, MacBooks, Apple Watch, AirPods, and iMacs — all integrated within the ecosystem of its highly profitable Services business. AAPL has a market cap of $3.4 trillion, making it the third-largest company in the world.
AAPL stock has surged recently, climbing 13% in the first full week of August, its biggest weekly gain in over five years. The rally followed CEO Tim Cook’s appearance alongside President Donald Trump at the White House to announce a $100 billion investment in U.S. production, with Trump adding that the company would be exempt from new chip tariffs. Still, shares of the iPhone maker remain down 7.8% year-to-date.
What Apple Must Do to Avoid ‘BlackBerry Moment’ in AI
Wedbush Securities tech bull Dan Ives recently highlighted three key steps Apple must take to avoid facing a “BlackBerry moment” in AI. For context, BlackBerry was one of the world’s most valuable companies two decades ago and a source of national pride in its home country of Canada. At the time, its smartphone was hugely popular, widely embraced for its QWERTY keyboard. However, everything changed with the release of a new device: the Apple iPhone. Apple’s revolutionary device was rapidly adopted in the following years, while BlackBerry clung to its old formula, and we all know how that ended. By the time BlackBerry tried to adapt, it was already too late.
A new tech revolution is underway as generative AI transforms the industry in profound ways, and some on Wall Street worry that Apple may now be facing its own “BlackBerry moment.” “This AI revolution, this strategy right now, it’s essentially invisible for Apple,” Ives said on CNBC’s “Fast Money” on Aug. 9. The analyst noted that, unlike other Big Tech companies aggressively innovating and investing in AI, Apple seems to be “on a park bench drinking lemonade” while its competitors are in an “F1 race.” Ives pointed to Google and Microsoft, noting that they are “focused on monetizing the biggest tech trend in the last 40 years.”
Meanwhile, Ives noted that Apple holds a competitive edge, as it has “the biggest consumer installed base in the world,” with 2.4 billion iOS devices and 1.5 billion iPhones in use globally. In his view, the company simply isn’t leveraging its assets properly. “It’s crystal clear AI innovation is not happening within the walls of Apple Park from the lack of innovation and constant loss of AI talent out the doors,” Ives said. With that, Ives outlined three recommendations for the company to demonstrate it’s not a “melting ice cube” in the AI space:
1. “Do the Perplexity acquisition before it’s too late.”
Ives noted that the main problem lies in Apple’s long-standing reluctance to pursue large-scale acquisitions, since organic internal development alone isn’t enough to close the gap. “There’s a better chance of me playing Ryder Cup in September than Apple innovating internally on AI,” he said. Ives contends that for Apple to truly compete, it “has to be acquisitions. And it can’t be small deals.”
That said, the analyst believes Apple should acquire AI search engine startup Perplexity “before it’s too late.” Perplexity AI is a free, AI-powered answer engine that lets users select from multiple AI models to respond to their questions. According to Ives, it has “some of the most impressive” AI technology and algorithms in the industry. As a result, the move could enable the company to “redefine” its AI strategy and improve its Siri voice assistant. In Ives’ view, Apple may need to spend around $30 billion to close the deal, but that amount would be “a drop in the bucket relative to the monetization opportunity Apple can achieve on AI.”
Notably, this isn’t the first time Ives has called on Apple to acquire Perplexity. Back in June, the tech bull described it as a “no-brainer deal” for the company in a post on X. On Apple’s fiscal Q3 earnings call, CEO Tim Cook did not dismiss the prospect of a future AI-focused acquisition, noting that Apple has already acquired seven smaller companies this year, though it does not set a specific size when evaluating potential deals.
2. “Bring in outside talent to the management team.”
The second point on Ives’ list is bringing in external talent to head Apple’s AI initiatives. This follows a wave of departures of top researchers from the iPhone maker to rivals such as Meta, OpenAI, and xAI, among others. Ives said Apple’s pace of innovation has stalled, likening its recent product launches to reruns of “Back to the Future.” “The innovation coming out of Apple Park has been very disappointing, and it’s time to bring outside AI talent to Apple Park,” he noted. The analyst thinks the Cupertino giant should focus on strengthening its management team with outside AI leaders, “even though Apple will have to pay up to bring in technology executives from the outside.” Although Ives is confident Cook will remain at the helm until at least 2030, he believes Apple must make leadership changes further down the ranks.
3. “Do the Google Gemini partnership.”
Finally, Ives suggests that Apple should strengthen its partnership with Alphabet’s Google to bring the Gemini AI model to iPhones. He stated that OpenAI will not be Apple’s future partner for several reasons and that the company needs to make a strong bet on Gemini, which could transform AI capabilities for Apple users. “Time is not on Apple’s side, and they need to take some big shots now, and doubling down on the Google partnership is the right move. This would be the right strategic bet despite regulatory scrutiny, it’s clear Gemini is the answer in our view,” Ives said.
Apple Plans Expansion Into AI Robots, Home Security, and Smart Displays
Apple seems to be going well beyond Ives’ suggestions in its AI push. Bloomberg reported last week that Apple is planning its AI comeback with an ambitious lineup of new products, including robots, a more lifelike Siri, a smart speaker with a display, and home-security cameras.
The centerpiece of Apple’s AI strategy is a tabletop robot designed to act as a virtual companion, slated for release in 2027, according to the report. At the same time, the smart speaker with a display is expected to launch next year as part of Apple’s push into entry-level smart-home products. Home security is considered another major growth opportunity. Apple’s new cameras will serve as the foundation of a security system capable of automating household functions.
These devices are aimed at restoring Apple’s reputation for innovation and strengthening the stickiness of its product ecosystem with consumers. At an all-hands meeting this month, CEO Cook told employees that Apple must succeed in AI and hinted at the upcoming devices. “The product pipeline — which I can’t talk about — it’s amazing, guys. It’s amazing,” Cook said. “Some of it you’ll see soon. Some of it will come later. But there’s a lot to see.”
What Do Analysts Expect for AAPL Stock?
Wall Street analysts are mostly bullish on Apple. Among the 38 analysts covering the stock, 19 rate it a “Strong Buy,” two a “Moderate Buy,” 15 suggest holding, and two give it a “Strong Sell” rating. This results in a consensus rating of “Moderate Buy.” AAPL stock currently trades close to its average price target of $235.56, but still has solid 29.5% upside potential to the Street-high target of $300.
