As Apple enters AI race, iPhone maker turns to its army of developers for an edge
A view of Apple’s new iPhone 16 at an Apple Store on the Regent Street in London, United Kingdom on September 20, 2024.
Rasid Necati Aslim | Anadolu | Getty Images
As Apple prepares Apple Intelligence to jump into Silicon Valley’s AI race, it’s relying on one of its strongest advantages: Its army of 34 million app developers.
IPhone users will get their first taste of Apple Intelligence, the company’s artificial intelligence system, later this month. The company is relying on Apple Intelligence to be the strongest selling point for the iPhone 16, its latest generation of smartphones.
Apple’s AI isn’t as advanced as the state of the art coming out of the most advanced labs, such as rivals like OpenAI’s ChatGPT, Google’s Gemini and Meta’s Llama. Apple isn’t using the biggest models, nor can it pull off some of the more show-stopping tricks of the bleeding-edge voice models — OpenAI’s latest can sing, for example.
Where Apple is hoping to distinguish its AI is that Siri may actually be able to do things on your phone — send emails, decipher calendars and take and edit photos. That’s something other company’s AI chatbots cannot currently do, and to accomplish this, Apple is beckoning its army of third-party developers to fine tune their apps to collaborate with Apple Intelligence. Eventually, Siri may be able to trigger any action in an app that a user can take, part of the company’s long term vision for Siri, Apple said in June.
“Siri will have the ability to take hundreds of new actions in and across apps,” said Apple’s Kelsey Peterson, director of machine learning, in the Apple Intelligence launch video.
Apple can easily make this happen for its own apps, but for Apple Intelligence to interact with the millions of non-Apple apps, it needs developers to embrace a new way of programming their apps. This means developers will need to create as many as hundreds of snippets of additional code called App Intents.
Apple has a strong history of getting its developers to support new platform initiatives, and it’s running a well-worn playbook to get them on board — personal attention from developer relations, a party-like atmosphere at the company’s annual developer’s conference and most importantly, it dangles App Store promotion that can lead to millions of downloads for developers who get on board.
If third-party developers jump on board and the Siri system works as advertised, it could represent one of Apple’s biggest and most durable advantages in the AI race.
“You should be able to string things together and kind of get that future we’ve all been envisioning where you can use Siri conversationally, to do a bunch of things at once,” said Jordan Morgan, an iOS developer who’s written a tutorial about App Intents.
Whether Apple is successful at cajoling its millions of developers is a critical question, and the stakes are high for the company.
The company is relying on Apple Intelligence, which only works on last year’s iPhone 15 Pro or iPhone 16 models that came out this year, to spur a wave of upgrades and boost flat iPhone sales. If Apple’s improved Siri is poorly supported by developers or it fails to impress, it could cool iPhone sales, and customers could wind up choosing to use a rival’s voice assistant through an app instead of the built-in Siri.
Apple Intelligence photos
Apple Inc.
What are App Intents?
Inside the Music app, for example, Apple has built about 10 intents, including actions like “Add to Playlist,” “Play Music,” or “Select Music.” A single app intent should define a single action, programmers say.
If you take a caffeine tracking app, for example, one intent would be the ability to show an overview of exactly how much caffeine the user has logged today, Morgan said.
When that App Intent is finished, Apple’s various “system experiences,” such as widgets, live activities, control center and Shortcuts, will be able to quickly display a current running tracker of how much caffeine has been logged without the user ever opening up the tracking app.
System search is another big draw for some developers. App Intents will allow apps to surface specific emails or other more granular data inside Spotlight, Apple’s system search.
App Intents don’t take that long to write, developers say, often requiring only a few lines of code.
In previous years, Apple recommended that developers adopt App Intents for their most important features, said Michael Tigas, the developer of Focused Work, a productivity app.
“Now, if there’s a way to adjust your app to perform any general action then you should create an App Intent for it,” Tigas said.
Fortunately for developers, they still have time to write all the code necessary for App Intents. While Apple Intelligence is starting to roll out next month, the biggest improvements to Siri aren’t scheduled to be released until next year.
Apple has to incentivize developers
Apple’s new Siri system will better understand questions even if a user makes a speaking error, a direct result of Apple’s work with language models, a relative of the large language models that power systems like OpenAI’s ChatGPT.
That means that Siri will be much more flexible in understanding the hundreds of different ways a user could phrase, for example, “apply a photo filter to an image I took yesterday.”
Apple has to train and test its model to understand the range of the most likely commands and questions for any given category of apps.
A downside to Apple’s approach is that only a few categories of apps will be supported by the new Siri at first, starting with photo and email apps. Eventually, Siri will support apps that focus on books, journaling, whiteboards, managing files, word processing, browsers, camera and photos, the company said.
Developers are already imagining how they might plan for users to interact with their apps with their voices.
A representative for Superhuman, a premium email app, told CNBC that it plans to use Apple’s AI system to enable questions about the contents of emails, such as “Hey Siri, when does my flight depart?” or “Hey Siri, when am I meeting with James to review his proposal?”
There’s a downside to Apple’s plan in the eyes of some developers who worry that users will spend less time inside their apps or confuse Apple Intelligence with the AI features they’ve built themselves.
“If this story were only about App Intents, developers would worry that their products might be reduced to the role of the plumbing that powers Siri, and leave them unclear on how to build sustainable businesses around it,” Igor Zhadanov, CEO under of Readdle, which makes email app Spark, wrote in an email.
Another drawback is that Apple Intelligence features will only be available on the latest iPhones, a small subset of the total iPhone user base. That limited market of iPhone users may discourage developers from investing time and effort into supporting the technology in the near term.
“Apple are limiting these kinds of Apple Intelligence features to the new 2024 iPhones and the expensive models from last year, so you won’t be able to build something for the masses anyway,” Tigas said.
WATCH: Apple Intelligence will mark a ‘renaissance of growth’ for the company, says Wedbush’s Dan Ives
Reddit CEO Steve Huffman stands on the floor of the New York Stock Exchange (NYSE) after ringing a bell on the floor setting the share price at $47 in its initial public offering (IPO) on March 21, 2024 in New York City.
Spencer Platt | Getty Images News | Getty Images
Reddit shares rose more than 10% on Tuesday, reversing a three-day slump that coincided with a broader decline among technology companies.
Despite Tuesday’s gains, Reddit shares are still roughly 30% below the close on Wednesday.
Reddit’s stock market upswing was likely bolstered by a Loop Capital analyst note published Tuesday that reiterated a buy rating and characterized the company’s shares as “extremely attractive.” The analyst note said that Reddit’s 50% drop on Wall Street in the past month “is excessive,” and that the social media company “has the biggest upside potential relative to Street estimates in our coverage universe.”
The company’s shares dropped more than 15% in February after the company reported weaker-than-expected fourth-quarter user numbers as a result of a Google search change that temporarily hurt its search-derived traffic. Although Reddit said at the time that it had recovered from the algorithmic shift, the user number miss spooked investors.
Reddit’s shares have since spiraled downward along with other tech companies like Apple, Nvidia and Tesla off of concerns related to President Donald Trump‘s tariffs and growing fears of a recession. The seven most valuable tech companies lost more than $750 billion in market value on Monday with Nasdaq experiencing its biggest decline since 2022.
Loop Capital managing director Alan Gould acknowledged in the note that investors are operating in a “risk-off market environment,” but he contended that Reddit “has been one of the top performing stocks over the past year,” aside from its most recent dip.
“RDDT wildly exceeded ours and Street estimates for 2024, which explains why the stock increased almost 7-fold from a $34 IPO price to a peak of $230 in less than a year,” Gould wrote, noting Reddit’s growing revenue and improved advertising tools, among other positive developments.
Reddit’s fourth-quarter sales grew 71% year over year to $428 million, which represents the fastest growth rate for any quarter since 2022.
“In our view, RDDT deserves the revaluation it had experiencing based on the growth it has shown in the recent earnings reports and future projected growth driven by the ability to narrow the ARPU gap, and data licensing possibilities,” Gould wrote.
Waymo self-driving cars with roof-mounted sensor arrays traveling near palm trees and modern buildings along the Embarcadero, San Francisco, California, February 21, 2025.
Smith Collection/gado | Archive Photos | Getty Images
Waymo on Tuesday announced it is expanding its service to include another 27 square miles of coverage around the San Francisco Bay Area.
With the expansion, Waymo will now take passengers around Mountain View, Los Altos, Palo Alto and parts of Sunnyvale, California. The Alphabet-owned company opened its robotaxi service to the general public in San Francisco in June.
Waymo will initially limit the availability of its Silicon Valley service to users of the Waymo One app who are residents with ZIP codes in the area, the company said. Waymo plans to serve more riders across the region over time. The fleet of vehicles that will be in use in the new coverage areas are fully electric Jaguar I-Pace vehicles with Waymo’s fifth generation of self-driving sensors, software and other technology.
“Opening our fully autonomous ride-hailing service in Silicon Valley marks a special milestone in our Bay Area journey,” Waymo product chief Saswat Panigrahi said in a statement. “This is where Waymo began and where we’re headquartered.”
Waymo expanded its San Francisco Bay Area robotaxi service last summer into Daly City, Broadmoor and Colma. Its robotaxis do not yet carry passengers to San Francisco International Airport.
A spokesperson told CNBC that Waymo is in “active discussions with SFO,” and added that the company is “working to connect” Silicon Valley and San Francisco to “provide seamless autonomous rides across more of the Bay Area in the future.”
Waymo also recently launched a commercial robotaxi service in Austin, Texas, just in time for the city’s annual South by Southwest festival.
While would-be competitors including Elon Musk‘s automaker Tesla, and Amazon-owned Zoox, are continuing their own robotaxi testing and development, Waymo has pulled far ahead of self-driving companies in the U.S.
Before Tuesday’s expansion, Waymo said it was serving more than 200,000 paid trips per week across San Francisco, Los Angeles and Phoenix.
Alphabet doesn’t disclose financial results for the autonomous vehicle business, but Waymo is part of its “Other Bets.” That business unit generated $400 million in the fourth quarter of 2024 and incurred operating losses of $1.17 billion, according to the company’s most recent financial filing.
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