WWDC: Apple faces AI, regulatory challenges as it woos software developers

Apple’s High-Stakes Developer Conference Amidst Market Pressures

Apple is set to open its annual Worldwide Developers Conference (WWDC) at a pivotal time for the company, as it navigates intense scrutiny over its artificial intelligence (AI) capabilities and mounting regulatory challenges. Despite the excitement typically surrounding its product and software reveals, Apple enters the 2025 event amid significant pressure to deliver on delayed AI promises and address questions from developers and regulators worldwide.

Delayed AI Ambitions and Developer Expectations

Last year’s WWDC saw Apple unveil its comprehensive AI initiative, Apple Intelligence, aiming to compete with fast-moving rivals such as Alphabet’s Google and Microsoft. However, Apple has struggled to keep pace: many marquee features, including a dramatically improved Siri smart assistant, remain unfinished and are now postponed until next year. The tech giant has managed to introduce some AI-powered writing and image-generation tools, but these largely rely on partnerships, notably leveraging capabilities from OpenAI’s ChatGPT for features within its devices and software.

The reliance on external providers, and the gradual rollout of homegrown AI functions, have left developers and observers questioning Apple’s ability to lead rather than follow in the AI space. Reports indicate the company may soon allow developers greater access to in-house AI models, potentially expanding Apple’s competitive edge, but full details are only expected at this year’s keynote.

Legal and Regulatory Roadblocks

On top of technical delays, Apple faces a wave of legal and policy challenges. Lawmakers and courts in both the United States and Europe are considering significant changes to how the App Store operates. At stake are the fees Apple charges developers, which generate substantial revenue. Recent court setbacks mean Apple could lose its ability to enforce up to a 27% commission on purchases handled outside its payment platform, a move questioned even by some of the company’s former supporters.

Simultaneously, the company is grappling with unpredictable trade conditions. President Donald Trump has threatened a 25% tariff on iPhones made outside the U.S., forcing Apple into a costly supply chain scramble and potentially impacting prices and manufacturing timelines for years to come.

Market Reaction and Strategic Shifts

Apple’s stock has reflected this tumultuous period, falling over 40% since the start of the year—a more dramatic decline than even its biggest technology rivals. By contrast, companies such as Google and Microsoft have seen gains, largely on the strength of their AI advancements.

The company is therefore expected to use WWDC as a chance to reset its narrative. Analysts predict announcements may include a new visual design overhaul for Apple’s operating systems, revamped AI tools for developers, and a more service-focused approach to bolster user engagement. With its hardware ecosystem still an appealing platform for AI features, Apple aims to demonstrate a renewed commitment to innovation and developer support—despite its current setbacks.

Looking Ahead

As Apple’s executives, led by CEO Tim Cook, take the stage in Cupertino, both the developer community and the wider tech industry will be watching closely. The ability to overcome regulatory headwinds and accelerate AI development will play a crucial role in defining Apple’s position in an increasingly competitive field.

While this year’s WWDC announcements may be less groundbreaking than past events, Apple’s strategy to address current challenges and show a clear path forward for Apple Intelligence—and AI in general—will be critical for its future relevance and growth.

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