Apple Engineers Need to UNBOX

September 16, 2025

Apple Loses Its Crown

Apple Inc. has seen its reign as the world’s most valuable company slip away in recent times. After years at the top, Apple’s market capitalization fell by 28% within a few months in 2025 – a loss of about $1.1 trillion – dropping the company from first to third place globally. Nvidia surged ahead to become the world’s most valuable firm (fueled by the AI boom in chips), and Microsoft now sits at #2, edging past Apple. The contrast is striking: Nvidia’s stock jumped on AI optimism while Apple’s slid. Investors and analysts are asking a pointed question – what happened to Apple?

One major factor is Apple’s perceived miss in the AI revolution. As one market watcher noted, Nvidia rode the AI wave as an undisputed leader, whereas Apple has “fallen hopelessly behind”. In mid-2025, Nvidia’s value hit roughly $4.2 trillion, while Apple – long the market cap king – lagged at about $3.2 trillion. This reversal in fortunes is largely “based almost entirely on the fact that one is the AI sector’s leader, and the other has fallen hopelessly behind”. In other words, Apple’s AI strategy – or lack thereof – has spooked investors, costing the company its crown.

The AI Gap: Why Apple Fell Behind

Apple’s stumble coincided with a generational shift in technology: the rise of generative AI. Over the past year, new AI-powered services (like OpenAI’s ChatGPT and Google’s Bard/Gemini) have exploded in popularity, and tech giants are racing to integrate advanced AI into their products. Unfortunately for Apple, it “missed the introduction of advanced AI features” that competitors rolled out. While companies like Google and Microsoft quickly baked generative AI into their offerings, Apple’s approach was cautious and secretive. iPhone 17, Apple’s flagship phone of 2025, tells this story. Upon its release, reviewers noted it offered minimal AI improvements beyond on-device smarts Apple already had. There was no headline AI assistant or generative feature ready at launch – nothing equivalent to Google’s AI-centric features on Pixel devices. This led to a growing perception that Apple is afraid to fully integrate AI into the iPhone – not because the company doesn’t see the value, but because its in-house AI isn’t yet ready for prime time.

Behind the scenes, Apple has been investing in AI research, but the results have been slow to reach consumers. The company reportedly spent years trying to overhaul Siri, its voice assistant, and develop its own large language models. Yet rivals poached Apple’s top AI talent and outpaced Cupertino in turning AI research into real products . By late 2024, Apple still hadn’t released an AI assistant on par with OpenAI’s or Google’s – a stark contrast to its peers. iPhone users can install third-party AI apps (even OpenAI’s) to get cutting-edge AI on their devices, but those innovations aren’t coming from Apple itself . “iPhone users can download most consumer-facing AI software from competitors, like OpenAI, for free. The iPhone can have state-of-the-art AI features, but they are not Apple’s,” one analyst dryly observed.

Apple’s cautious approach became clear at its 2025 Worldwide Developers Conference. The company unveiled “Apple Intelligence,” a suite of AI-powered features (like text generation in messages, a new image creation app, and an upgraded Siri) aimed at catching up with competitors . It was Apple’s belated answer to the AI craze – finally integrating generative models into iOS and macOS. However, even then Apple held back some capabilities. For example, a more deeply “personal” version of Siri was teased but not released; Apple’s software chief Craig Federighi admitted onstage that “this work needed more time to reach our high-quality bar” . In essence, Apple was saying it wouldn’t rush out AI features until they were fully baked. This caution reflects Apple’s brand (which prizes privacy and reliability), but it also highlighted that Apple simply didn’t have an advanced AI ready in time for iPhone 17’s debut. Meanwhile, rivals forged ahead at full speed.

Rivals Surge Ahead in the AI Race

While Apple took its time, competitors leapt forward with aggressive AI integration. Google, for instance, made its flagship Pixel phones into showcases of AI. By 2025, the Google Pixel 10 came with a generative AI assistant (powered by Google’s cutting-edge Gemini model) deeply woven into the user experience. The results have been startling – even humiliating – for Apple. “Google’s AI features on the Pixel 10 wipe the floor with whatever Siri-named joke Apple offers on the iPhone,” wrote tech reviewer Karandeep Singh after trying Google’s latest phone . He described switching from an iPhone 16 Pro to Pixel as “time travel into AI’s future”. Such commentary, though tongue-in-cheek, underscores a real gap. Siri, which once pioneered voice assistants, now feels antiquated. “At this point, Siri is basically an alarm-setter when the phone isn’t within reach. That’s it,” Singh quipped bluntly . In contrast, Google’s AI can understand complex, casual questions and handle follow-ups seamlessly, acting “less like a voice assistant and more like an agent” that can perform multi-step tasks across apps. From AI photography (Google’s Magic Eraser and new AI “Magic Editor” far outshine Apple’s rudimentary object remover ) to real-time translation and email summaries, Pixel phones are loadedwith intelligent features. Google has made AI the core of the Pixel experience – and it shows. Apple, by comparison, is still introducing these capabilities slowly (and often relying on third-party apps or cloud services to do it).

Samsung, too, has been busy infusing AI into its products. The Korean giant has even pushed generative AI into smart appliances and TVs. In 2024 it announced an upgraded Bixby voice assistant using its own large language model, aiming to rival Siri and Google Assistant. “With a smarter Bixby, we focused on making AI practical,” said Samsung executive Hun Lee, “helping viewers connect with content in smarter, more natural ways.” On Samsung’s latest Galaxy phones, Bixby is becoming far more conversational and context-aware, able to handle follow-up questions and complex commands that would stump Siri. For example, the new Bixby can interpret a query like “It’s cloudy outside, what should I wear to work?” – providing both the weather forecast and clothing suggestions. That kind of nuanced, multi-part response is something Apple’s Siri still can’t do, giving Samsung an edge in user experience. Moreover, Samsung is integrating AI broadly across its ecosystem – from phones to TVs to home appliances – aiming to create a unified, intelligent environment. In short, Apple’s rivals are not afraid to shove AI into every nook and cranny of their products. Google and Samsung are determined to claim the “AI-first” mantle in consumer tech, while Apple’s strategy has seemed risk-averse in comparison. This dynamic – competitors boldly innovating while Apple refines and delays – has contributed to the narrative that Apple fell behind, which in turn has weighed on Apple’s stock.

Innovation vs. Iteration at Apple

All of this begs a bigger question: Has Apple stopped innovating? Some critics point not just to AI, but to a pattern of conservatism in Apple’s recent product history. Over the last decade, Apple’s product updates have often been incremental – faster chips, better cameras – but few game-changers. The revolutionary leaps of the Steve Jobs era (the iPod, iPhone, iPad) gave way to a steadier, more iterative approach under CEO Tim Cook. Apple’s design culture also shifted. Former design chief Sir Jony Ive, the visionary behind the look and feel of the iPhone and other hits, reportedly grew frustrated as “finance and marketing [gained] authority over product decisions” at Apple. Ive’s team saw their influence wane in an environment that prized predictability and profit margins; ultimately, Ive departed the company. Under Cook’s leadership, Apple became a master of supply chain and efficiency – but perhaps at the expense of the freewheeling innovation Apple was once known for. As one analysis summarized, Apple in recent years suffered from “stagnant innovation, rising product prices, and strategic shifts prioritizing shareholder profits over product excellence.” In fact, Cook has spent enormous sums on stock buybacks (over $100 billion annually in recent years) and started paying dividends – actions Steve Jobs refused to take, preferring to invest in R&D and bold projects . Those financial moves have made investors rich and at times buoyed Apple’s valuation, but they did not produce new blockbuster products.

Looking at Apple’s lineup, it’s true that recent iPhone models have blurred together. By the late 2010s, year-to-year iPhone designs changed only marginally . A 2014 iPhone next to a 2016 iPhone looked nearly identical . Meanwhile, prices climbed higher and higher, testing consumer loyalty. Other product lines showed similar gradualism – the Apple Watch and AirPods saw steady refinement but no radical reinvention of their categories. Apple’s last major new device category was the Apple Vision Pro, an ambitious $3,499 mixed-reality headset introduced in 2023. It was a moonshot product – blending VR and AR with cutting-edge silicon chips – but it hasn’t exactly set the market on fire. Billed as “one more thing” reminiscent of Jobs’ big reveals, the Vision Pro turned out to be a niche, early-adopter gadget that most people could neither afford nor find practical. Initial sales have been modest, and some analysts called it a disappointment out of the gate. Apart from that headset, Apple’s hardware strategy under Cook has been mainly extension and refinement of existing product lines. There’s nothing wrong with refinement – Apple’s execution is famously polished – but the lack of a “next big thing” has fueled a narrative that Apple’s innovation engine is idling. Tech journalist Walt Mossberg once noted that after a certain point, Apple’s product launches started feeling like “upgrades, not breakthroughs.” That sentiment has only grown louder in the AI era, where Apple appears to be playing catch-up.

It doesn’t help that Apple’s legendary co-founder, Steve Jobs, casts a long shadow. Jobs was synonymous with innovation – he was the visionary who upended multiple industries. In contrast, Tim Cook is often seen as a superb operator but not a product visionary in the same mold. This contrast leads to cheeky questions like, “Is Apple waiting for the ghost of Steve Jobs to innovate for them?” Observers joke that Apple’s daring spirit seemed to wane after Jobs’ passing, as if his ghost might be needed to spark the next breakthrough. It’s an exaggeration – Apple has plenty of creative talent – but it captures the mood of those who feel the company has lost some of its magic and risk-takingbravado. Even within Apple, there’s recognition that they must do more. An Apple VP reportedly reminded teams of a famous Steve Jobs maxim: “Innovation distinguishes between a leader and a follower.” If Apple wants to lead (in market cap, in tech influence) again, it cannot afford to just play it safe.

The Need for Continuous Innovation

The tale of Apple’s recent stumble is a cautionary one. In the fast-paced tech world, continuous product innovation is the need of the day. Resting on laurels – even a tremendous success like the iPhone – can be perilous. Consumer tastes evolve, new technologies emerge, and competitors are always nipping at your heels. The lesson for Apple (and any market leader) is clear: innovate or decline. As one business adage puts it, “If you can’t innovate sand, innovate the packaging.” In other words, even if the core product is mature, find creative ways to improve the experience – be it design, delivery, features, or new business models. Apple, to its credit, still has immense strengths: a robust ecosystem, top-notch hardware engineering (its custom Silicon chips are industry-leading), and a brand that people love. But the company must keep reinventing aspects of its products to stay ahead. Incremental improvements won’t capture the public’s imagination in the age of AI. We are at a technological inflection point – AI, AR, and other frontiers are shifting what consumers expect. The companies that thrive will be those that embrace bold innovation continuously, not in stop-start bursts. Apple’s own history proves this: every breakthrough (Mac, iPod, iPhone, App Store, etc.) unlocked new waves of growth. The recent market cap shakeup is a signal that Wall Street, at least, is uncertain if Apple’s next wave is coming. As an analyst at 24/7 Wall St. warned, “It has become increasingly clear that Apple cannot catch up to AI market leaders… It may soon become nothing more than a hardware company” if it doesn’t change course . That fate is not sealed – but avoiding it will require a renewed commitment to innovation at Apple’s core.

Unboxing Creativity: The Power of Play

How can Apple – or any organization – reignite innovation? Part of the answer may lie in rethinking its culture and approach to creativity. Interestingly, one way to boost innovation is to infuse a sense of play and experimentation into the process. Research shows that adults who embrace playfulness experience greater creativity and innovative capacity. This is where concepts like “unboxing” your thinking come in. At UNBOX – a creative learning platform and innovation lab – every product is built with the idea that innovation should be at the center. The company’s framework, tellingly called PLAY, brings together multiple experts from different fields to collaborate on designing, prototyping, testing, and building a final product. It’s a rigorous process, but it’s also fundamentally playful and experimental by design. By leveraging diverse perspectives and rapid prototyping cycles, the PLAY methodology ensures that ideas are constantly stress-tested and improved in a creative loop. In essence, UNBOX treats innovation like a game – one where teams brainstorm freely, try bold ideas in prototype form, learn from failures, and iterate. This gamified approach keeps the creative muscles in shape and encourages thinking outside the proverbial box.

Such innovation games can be powerful. They help professionals break out of habitual mindsets and approach problems with fresh eyes. “Adults have a lot of automatic habits… Play lets us refocus and understand our environment differently,” explains psychologist Dr. Cindy Morris, noting that play can “ultimately enhance everyday life,” especially when tackling tough challenges. In the corporate context, structured play in innovation workshops or “hackathons” often leads to out-of-the-box solutions. By simulating scenarios and encouraging creative risk-taking in a low-stakes environment, organizations build human capacity to innovate – the confidence and skill to tackle real-world problems creatively. Platforms like UNBOX tap into this by making innovation fun and collaborative. They recognize that great ideas often arise when people are allowed to experiment, tinker, and even fail forward in a supportive setting. It’s a reminder that innovation isn’t just a process – it’s also a mindset, one that anyone can cultivate.

Apple: Time to UNBOX

Apple’s journey from trillion-dollar triumph to questions about its innovative future is a dramatic illustration of the adage “innovate or die.” No, Apple has not “died” – far from it, the company remains enormously successful and could well regain its #1 spot. But the message from the market and the tech community is sobering: stagnation is the enemy of leadership. In a world now led by AI breakthroughs, Apple will need to think outside the box – perhaps radically so – to regain its former dominance. That might mean empowering its engineers to experiment more freely, embracing external ideas (the rumored partnership with OpenAI to integrate ChatGPT into Apple’s ecosystem is one such step ), and fostering a culture more tolerant of risk and imagination. Apple’s own engineers and designers are hugely talented; unleashing their creativity with a bit more of a playful, startup-like spirit could spark the next big thing. It’s time to unbox the innovation at Apple. After all, as Steve Jobs famously said, “Innovation distinguishes between a leader and a follower.” Apple’s engineers need to UNBOX their thinking, rekindle their inventive passion, and prove that Apple can still innovate – not just in sand, or packaging, but in paradigm-shifting, life-changing ways.