Apple Inc. experienced a significant blow to its market capitalization following reports of further delays to its long-awaited AI-enhanced Siri features. Shares of the tech giant dropped sharply, erasing approximately $200 billion in market value in a single trading session and pushing the company’s valuation below the $4 trillion mark for the first time in recent periods.
The decline, reported as close to $202 billion by some sources, marked one of the largest single-day losses on Wall Street. Apple’s stock fell nearly 5%, aligning with broader sector rotation away from megacap technology stocks toward more traditional sectors like industrials and energy. This occurred amid uncertainty surrounding Apple’s ability to deliver on its artificial intelligence promises, particularly with Siri positioned as the centerpiece of Apple Intelligence.
The delays stem from persistent technical challenges uncovered during internal testing of the revamped Siri. According to Bloomberg’s Mark Gurman, citing people familiar with the matter, the company encountered reliability issues, including slow response times, difficulties in accurately processing queries (especially when users speak quickly), and problems handling personal context or on-screen content interpretation. These snags have forced Apple to postpone the rollout originally planned for iOS 26.4, expected in March 2026.
Instead, the updated features—such as deeper personalization, access to personal data for tasks like searching old messages, and more natural interactions—will now be staggered. An initial version is targeted for iOS 26.5 in May 2026, with more advanced capabilities potentially deferred to iOS 27 in September 2026, possibly aligning with the launch of the iPhone 18 Pro. This phased approach prioritizes stability over a comprehensive release, as Apple aims to avoid launching an unreliable version that could lead to public criticism and memes.
This is not the first postponement for the Siri overhaul. Apple first unveiled ambitious plans for a smarter Siri at WWDC 2024 as part of Apple Intelligence, but delayed the initial rollout from mid-2025 to spring 2026. The repeated setbacks have fueled perceptions that Apple is struggling to keep pace in the generative AI race, despite its vast ecosystem and user base.
To bolster its efforts, Apple has pursued partnerships, including a deal with Google to integrate Gemini AI models as the foundation for next-generation Siri capabilities. This could transform Siri into a more chatbot-like experience with enhanced web search and image generation features, though these remain in experimental stages. Apple is also exploring concepts to make Siri function more like a browser, but development continues to face hurdles.
The market reaction reflects investor concerns over Apple’s AI strategy. While companies focused on AI infrastructure (such as chipmakers Nvidia and TSMC) have seen strong performance, those integrating AI into consumer products—like Apple—face higher scrutiny. Analysts note that Apple’s lack of direct control over high-demand semiconductors puts it at a disadvantage compared to competitors.
The news prompted a downgrade in the U.S. information technology sector outlook by UBS to neutral, citing software uncertainties and high valuations. Despite the drop, Apple’s fundamentals remain strong, supported by its installed base and ecosystem loyalty. However, each delay reinforces questions about the company’s direction in AI and its ability to deliver the transformative Siri experience it has promoted.
As Apple prepares to release iOS 26.4 with minor updates and bug fixes, the full AI-powered Siri remains elusive, leaving users and investors waiting for concrete progress in the coming months.
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