Apple CEO Tim Cook Downplays AI Threat to iPhone, Hints at Complementary AI Devices

Tim Cook downplays AI threat to the iPhone - 9to5Mac

During today's Q3 2025 earnings call, Apple CEO Tim Cook addressed growing speculation that advancements in AI, and the new hardware form factors enabled by them, could eventually sideline screen-based devices like the iPhone. Asked whether Apple sees a future where dependence on smartphones diminishes due to AI-driven shifts in how people interact with technology, Cook pushed back: "When you think about all the things an iPhone can do, from connecting people to bringing app and game experiences to life, to taking photos and videos, to helping users explore the world and conduct their financial lives, and pay for things, and so much more, you know... it's difficult to see a world where iPhone is not living in it." While the question didn't directly mention OpenAI's new partnership with Jony Ive's company and the upcoming AI-centric io product, this was surely on everyone's mind as it was asked and answered. It's also worth noting that not long ago, Apple's Eddy Cue floated the idea that "you may not need" an iPhone in 2035. However, the context was much different: to downplay Apple's partnership with Google, hoping to convince the court to leave it untouched in the ongoing antitrust case against Google. Interestingly, Cook also dropped a subtle hint at future Apple products that may offer deeper AI integration, adding: "That doesn't mean that we are not thinking about other things as well, but I think that the devices are likely to be complementary devices, not substitution." While it obviously shouldn't come as a surprise that Apple is looking beyond its current products as vehicles for AI, it is less common to hear Cook officially acknowledge potential future product directions. One of these products could be the rumored screen-equipped HomePod, which reportedly had its launch delayed due to Apple's struggles with the revamped Siri, and is now expected in spring 2026.

Tim Cook Shuts Down Fears AI Could Kill The iPhone, Says It Will Enhance, Not Replace It, While Teasing AI‑Driven Devices Poised To Transform Apple's Future Product Line

Apple CEO Tim Cook has downplayed concerns that AI and new device form factors could threaten the iPhone's dominance in the market. At Apple's Q3 earnings call on July 31, Cook made it clear that the iPhone remains a central part of Apple's ecosystem and will continue to be the company's flagship product. The CEO also addressed speculations surrounding the future of AI‑driven gadgets, which could have the potential to make the iPhone obsolete, but the company has its own plans in place to offset these concerns. Tim Cook emphasized that Apple is exploring new possibilities and that any future product that is made will be designed to complement the iPhone, not replace it. He said that "It's difficult to see a world where iPhone is not living in it," highlighting its unmatched versatility in communication, media, exploration, and payments. The concerns emerged amid rising industry chatter related to foldable smartphones, AI‑powered wearables, and new computing devices that exist under wraps at this stage. Tim Cook's remarks stand in opposition to Eddy Cue, who previously suggested a future where the iPhone might not be essential, and it gives investors and loyal customers reassurance and hope. However, we must admit that Eddy Cue's points were tied to antitrust discussions rather than actual forecasts for the company's future roadmap. Tim Cook was quick to downplay the threats from AI and foldables by saying: "When you think about all the things an iPhone can do, from connecting people to bringing app and game experiences to life, to taking photos and videos, to helping users explore the world and conduct their financial lives, and pay for things, and so much more, you know... it's difficult to see a world where iPhone is not living in it." While Tim Cook was hesitant to spill the beans on any future product launches, his comments do align with prior reports of Apple working on an AI‑enhanced version of the HomePod with a display, possibly set for a spring 2026 release. We have also been hearing details on the foldable iPhone, which was recently said to launch by the end of next year. As for AI, analysts have split views -- some say that the company is adopting a slow but strategic approach, while others are convinced that the company needs to accelerate development. Ultimately, Cook's message is pretty clear that the iPhone is here to stay and AI and additional product form factors will only complement the category rather than replace it. The iPhone will continue to evolve with AI‑driven capabilities and investors can take comfort in knowing the company's strategy on long‑term growth and stability for the ecosystem as a whole.

Apple CEO Tim Cook Says iPhone Still Central To Future Tech As Ex-Design Chief Jony Ive Builds AI Device For OpenAI - Apple (NASDAQ:AAPL)

Apple Inc. AAPL CEO Tim Cook has downplayed the threat of screenless AI devices, calling them complementary to the iPhone -- even as former design chief Jony Ive teams up with OpenAI to build next-generation AI hardware. iPhone Remains Core To Tech's Future, Says Cook During Apple's fiscal third-quarter earnings call on Thursday, Bank of America analyst Wamsi Mohan asked Cook how Apple is preparing for a world where AI could diminish reliance on screens. Cook responded by reaffirming the iPhone's central role in users' lives. "When you think about all the things an iPhone can do -- from connecting people to bringing app and game experiences to life, to taking photos and videos, to helping users explore the world and conduct their financial lives and pay for things -- it's difficult to see a world where iPhone's not living in it," Cook said. He added, "That doesn't mean we are not thinking about other things as well... but I think that the devices are likely to be complementary devices, not substitution." See Also: Apple Faces 18-Month Deadline To Deliver On AI, Says Analyst Jony Ive And OpenAI Are Working On AI-Powered Device His comments indirectly addressed the developments involving Ive, Apple's former chief design officer, who left in 2019. OpenAI has completed a $6.5 billion acquisition of Ive's AI hardware startup, io Products and tapped his design firm LoveFrom to take on "deep design and creative responsibilities" in building a new class of AI-native hardware. OpenAI CEO Sam Altman and Ive are reportedly working on a pocket-sized, screen-free, context-aware device designed to understand user behavior and surroundings -- potentially redefining how users interact with technology. Gene Munster Surprised By Cook's Acknowledgment Gene Munster, managing partner at Deepwater Asset Management, noted on X that he was surprised Cook even acknowledged the development. "This tells me maybe Apple would be ok working with and also competing with Jony's device," he said. Ive's return to hardware -- especially in partnership with one of Apple's biggest AI rivals -- marks the first real design-led competition to the iPhone in years. Apple Beats On Revenue And EPS, But AI Concerns Persist While Apple beat revenue and EPS expectations in the third quarter, the company has faced criticism for lagging in generative AI, amid a wave of executive departures. The company reported fiscal third-quarter revenue of $94 billion, surpassing analyst expectations of $89.04 billion. Earnings came in at $1.57 per share, ahead of the estimated $1.42 per share. iPhone sales totaled $44.58 billion, up from $39.3 billion in the same quarter last year. Price Action: Apple shares rose 2.42% to $212.59 in after-hours trading, according to Benzinga Pro. According to Benzinga's Edge Stock Rankings, AAPL maintains strong upward momentum in the short and medium term, but shows a downward trend over the long term. Additional performance details can be found here. Read Next: Tim Cook Says Apple Is 'Very Open' To AI Acquisitions Amid Mounting Pressure To Catch Up With Google, Meta And Microsoft Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock AAPLApple Inc$212.592.42%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum29.57Growth32.93Quality74.42Value9.54Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs