On Monday, Apple ($AAPL) kicked off WWDC 2026, the company's biggest event of the year. It was also Tim Cook's final major keynote as CEO before handing over the reins to John Ternus.
Everyone was expecting Apple's big AI comeback. A new Siri, new capabilities, a new strategy.
And Apple delivered. It unveiled a new Siri, iOS 27, the new "Liquid Glass" design language, and a partnership with Google for Gemini. In other words, everything investors had been asking for.
APPLE
First and most importantly, the new AI-powered Siri. Two years after the disappointing rollout of Apple Intelligence, the company is returning with a Siri built on large language models, the same underlying technology used by ChatGPT and Gemini. It will have its own dedicated app across iPhone, iPad, and Mac. It will remember past conversations, support visual intelligence, and handle multitasking across devices.
And here's something particularly important. Apple is not doing this alone.
The company has entered into a partnership with Google. The backend of the new Siri will run on Gemini.
Yes, you read that correctly.
Apple, the company that has always wanted to control every layer of its ecosystem, has effectively acknowledged that it fell behind in AI and is now turning to its biggest rival in mobile operating systems for help.
At the same time, Apple unveiled iOS 27, iPadOS 27, macOS 27, watchOS 27, the new "Liquid Glass" design language, and AI agents inside the Passwords app that can automatically change passwords on behalf of users.
In short, Apple announced everything the market had been waiting to hear for the past two years.
WHY THE STOCK FELL
"Wait a minute. If Apple gave the market everything it wanted, why did the stock drop?" you might ask.
Apple shares fell 4% yesterday. And honestly, the reason is pretty simple.
Apple announced the features, but it did not provide a clear timeline for when users would actually get them.
Baird analyst William Power put it bluntly. The AI-powered Siri will enter beta "later this year," but Apple offered no specific date for a full release. According to him, that uncertainty was the main driver behind the intraday selloff.
And he wasn't the only skeptic.
UBS analyst David Vogt argued that Apple Intelligence could end up disappointing consumers. He does not expect the new AI features to become a major driver of iPhone demand and left his iPhone sales forecasts unchanged.
On the other hand, there are bullish voices as well.
Wedbush estimates that Apple's new AI services could add between $75 and $100 per share in value that is not yet reflected in current valuations.
In other words, Wall Street remains divided. Some analysts see a missed opportunity, while others see significant upside.
COOK'S FINAL BET
Now let's talk about the bigger story behind all of this.
This was Tim Cook's final major presentation as CEO. His successor, John Ternus, is preparing to take over. And Apple finds itself in a position it has never been in before.
ChatGPT, Gemini, and Claude are advancing at a pace Apple has struggled to match.
And the company knows it.
Not explicitly, but through its actions.
By turning to Google. By relying on cloud-based models that are "comparable" to frontier AI systems while leaning on technology from Google ($GOOG) and Nvidia ($NVDA).
So what does that mean?
It means Cook is leaving Ternus with a massive challenge.
The challenge of proving whether Apple can reclaim a leadership position in AI or whether it will become just another company paying royalties to competitors in order to stay relevant.
Of course, it's not all negative.
Apple still has more than 2 billion active devices, the world's largest app ecosystem, and a cash position that few competitors can match.
