The Nuanced Strategic Picture: What Apple Got Right and Wrong

Apple’s structural advantages are real but insufficient — without AI capability, the platform becomes a pipe for others’ intelligence.

What Apple Got Right

• ✓ Device-Layer Control — 2.2B active devices
• ✓ Privacy Positioning — Clear differentiation
• ✓ Silicon Excellence — M-series chips lead
• ✓ Ecosystem Lock-In — Deep user embedding

What Apple Got Wrong

• ✗ Model Development — $34.5B R&D, no competitive models
• ✗ Execution Speed — 2024 promises undelivered in 2026
• ✗ Talent Retention — AI exodus to Meta, OpenAI
• ✗ Strategic Vision — Waffled on LLM priority

The Gruber Assessment

“If I were Apple, I’d be scared right now. Siri and today’s Apple Intelligence are at least two generations behind.”

The Question

Will Apple become a PLATFORM or PIPE? 2026-2027 will determine the answer.

This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.