• Apple Intelligence 2.0 likely to be one of the most anticipated topics at WWDC 2025.
• Apple has the potential to provide an ‘Agentic AI’-based platform with a deeper Siri context-based experience which could help Apple regain ground in the AI race.
• Apple holds industry re-shaping potential, but it is a long way behind the leaders.
• According to a recent Counterpoint study, 84% of iPhone users are willing to pay for Apple Intelligence.
  

All Eyes on Apple

Apple’s Worldwide Developers Conference 2025 is set to be held on June 9-13. The tech industry as well as consumers are expecting Apple to focus on breakthrough software enhancements during the event. Anything less than a stellar performance is likely to be seen as disappointing.

After WWDC 2024, Apple product launches had consumers looking forward to Apple Intelligence, and the experience left many longing for more. Consequently, all eyes are on the 2025 edition. Apart from visual, functional and other comprehensive product changes across operating systems, the spotlight is on Apple Intelligence. Apple is expected to double down on its AI strategy hereon.

From Catch Up to Caught Up?

Android has had a significant head start in generative AI since 2022, and at this point has a lengthening set of features it offers over and above Apple, including a conversational chat assistant, AI personalities and more.

Apple Intelligence had a slow start compared to leading Android brands that had AI support from leaders like Google (Gemini). Most AI features in Android systems are robust and comprehensive compared to Apple’s. Android allows third-party app integrations, while Apple does not. Android supports system integration, app ecosystem, device support, customizations, and more, to a significant extent. However, Apple prioritizes on-device processing and makes sure that data privacy is upheld across its ecosystem. These priorities provide certain limitations that need to be surpassed for Apple to boost AI deployment.

The industry is seeing an ongoing Agentic AI arms race. This is an emerging field and those who deliver will shift the GenAI smartphone conversation, turning the smartphone from a simple communication device to a truly intelligent, autonomous companion. At the event, the market will be looking for more on-device processing, more intelligence and context awareness – all delivered with deeper Siri integration.

Apple is not ‘behind’ in terms of technology. It is, rather, delayed in the Apple Intelligence rollout due to a deliberate strategy focused on privacy, ecosystem control, and perfect integration. As Apple ramps up its AI investments, we can expect the company to close the feature gap with Android.

Source: Counterpoint Research

Long-term Growth Potential

Apple service revenues have consistently grown over the last few years. Some services that comprise the Apple One Package subscription offering are essential for Apple product users. For example, iCloud is one of the most-used services in the Apple portfolio.

Among iPhone users in the US, 46% pay for iCloud as a service, according to Counterpoint Research’s Apple iPhone User Survey Report, 2024-2025. This figure increases to 52% in China and 54% in the UK.

Apple’s greatest strength is its users – specifically, their propensity to pay. Currently, a quarter of Apple revenues comes from services. If Siri does become a true AI companion, what percent of Apple’s user base will pay? In the long term, the math on this is very attractive.

According to Counterpoint’s recent study covering iPhone users across 60% of the globe’s Apple markets, 84% of iPhone users are willing to pay for Apple Intelligence.

Source: Counterpoint Research

Hygiene Factor: Privacy

Apple has always marketed itself as a brand that takes data privacy and security seriously. Its marketing, policies and technical architecture focuses on consumer privacy, setting it apart from rivals. According to Counterpoint Research’s Apple iPhone User Survey Report, 2024-2025, 43% iPhone consumers felt that their data and privacy is safest with Apple. This, to an extent, also converts to a certain comfort level, wherein, 31% of these consumers felt they would be completely comfortable letting Apple utilize their data to further improve their experience. This is a step in the right direction, considering the trust and values the brand has built over time.

Source: Counterpoint Research

At WWDC 2025, we expect Apple to cover a lot of ground around comprehensive operating system upgrades and a unified system front. It also needs to make a big impact when it comes to AI features like increased use cases, on-device convenience, in-cloud options, personal context awareness, AI ecosystem integration and other broad customizations.

Apple needs to provide a powerful signal that it is ready to ship some meaningful updates, or have a good story to explain why it has been lagging behind. Once Android users start enjoying a much enhanced service experience, the gap is going to become too wide to ignore. Apple needs to narrow the gap with the competition with this WWDC edition and AI will be a key step to achieve that.