Apple Ventures Into AI Robotics, but Tesla Dominates the Scene—Morgan Stanley Weighs in

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Published on:October 23, 2025
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While Apple's iPhone sales have been the company's golden goose for years, the tech giant is ultimately admitting what everyone already knows: they need a backup plan. Enter AI robotics—because apparently making phones isn't exciting enough anymore.

Apple is diving headfirst into AI hardware, developing robots and smart displays for home use. The goal? Diversify revenue streams and reclaim their innovation crown. Bold move, considering they're facing serious competition from Amazon and Google in the smart home arena.

Apple's bold leap into AI robotics marks a desperate grab for innovation relevance amid iPhone decline and smart home competition.

The star of Apple's robotic show is a tabletop robot planned for 2027. This little guy will feature a lifelike Siri and can mimic human movements—think nodding during video calls. It's designed as a virtual companion, which sounds either futuristic or slightly dystopian, depending on your perspective. The device will include a 9-inch display mounted on a robotic arm, functioning as a home command center and videoconferencing tool.

Speaking of Siri, Apple is giving their voice assistant a major makeover using large language models. Projects Linwood and Glenwood are focused on integrating AI into Apple devices, making Siri more interactive and, hopefully, less frustrating to use.

But here's the thing—Apple isn't exactly early to this party. The robotics market is expanding rapidly, with companies throwing money at AI integration left and right. The shift toward AI-integrated devices has become market standard, not revolutionary. With 35% of businesses already implementing AI solutions and 40% planning adoption, Apple is joining an increasingly crowded field.

Apple's immediate plans include a smart speaker with display launching next year, targeting entry-level smart home markets. They're also developing home security cameras to rival existing systems. Everything will integrate AI for improved functionality, because that's apparently mandatory now. These security cameras will feature facial recognition capabilities and automation features to compete directly with Amazon's Ring and Google's Nest.

On the research front, Apple is presenting at the International Conference on Computer Vision and hosting Natural Language Processing workshops. They're developing something called the EMOTION framework for generating expressive motion in humanoid robots—fancy terminology for making robots seem less robotic.

The challenge? Overcoming engineering hurdles to achieve commercial viability. Apple must innovate beyond incremental updates to stay competitive in this expanding market.

Will Apple's AI robotics venture succeed? Only time will tell. But one thing's certain—they're betting big on a future where your home is filled with talking, nodding machines.

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