Apple did announce a few Apple Intelligence iterations at WWDC, but the general consensus is that the company's AI efforts have been flagging behind other big tech businesses. That has led to speculation that it may look externally to improve its standing in the race to build the best AI features.

AI investments are also driving increased CapEx spending, which was up year-to-date, the company said. However, Apple pointed out that it still employed a hybrid model where it relies on third parties to make capital investments, which is why it won’t grow exponentially.