TLDRs;
- Apple shares fell 5%, marking its worst drop since April 2025 amid delayed Siri AI rollout.
- Siri’s AI update now expected in May, phased rollout, internal tests reveal integration issues.
- FTC reviewing Apple News curation after bias claims, increasing political and regulatory exposure.
- Reliance on Google Gemini signals strategic shift for Apple, reflecting broader tech industry trends.
Apple Inc. (NASDAQ: AAPL) suffered its steepest stock drop since April 2025 on February 12, with shares falling 5% amid delays to its highly anticipated Siri AI update. The sell-off erased gains the company had recorded for 2026, leaving its year-to-date performance down nearly 4%.
The decline highlights both technical hurdles in Apple’s AI initiatives and growing regulatory scrutiny in the tech sector, signaling a period of heightened volatility for the company and the broader market
Siri Update Postponed to May or Later
The delayed AI update for Siri, initially expected earlier this year, has now been pushed to May or later. Apple plans a phased rollout of the update, citing the complexity of integrating its proprietary models with Google’s Gemini AI system.
Apple just wrapped up its worst day on the stock market since April after reports surfaced about delays with Siri and as the company’s news app faced regulatory scrutiny.
➡️ The stock dropped 5% on Thursday, wiping out its gain for the year and leaving it down almost 4% in 2026.… pic.twitter.com/LypYxc5wCX
— CNBC International (@CNBCi) February 12, 2026
Internal tests reportedly revealed performance issues with the hybrid approach, particularly when handling complex user requests. Engineers are continuing to refine the integration of Apple’s AI with both ChatGPT and Google’s Gemini technology to ensure a smoother experience.
Apple has confirmed that it remains on track to launch the update sometime in 2026, but the postponement has already weighed on investor sentiment.
Regulatory Pressure Adds to Investor Concerns
Adding to market unease, the Federal Trade Commission (FTC) sent a letter to CEO Tim Cook requesting a review of Apple News’s content curation policies. The agency is investigating allegations that the platform favors left-leaning news outlets while suppressing conservative content.
The review follows a study by the Media Research Center, which raised concerns about potential bias. The issue quickly gained attention when former President Donald Trump highlighted it on Truth Social. While the FTC emphasized that it is not acting as a “speech police,” it is considering whether Apple News’s practices could qualify as a “material omission” that misleads consumers under Section 5 of the FTC Act.
Reliance on Rivals Signals Strategic Shift
Apple’s decision to incorporate Google’s Gemini models reflects a notable shift for the tech giant, which historically prefers to develop AI solutions independently. Analysts suggest that rising costs and technical complexity for building competitive foundation models are pushing even major tech firms toward collaborative approaches.
This reliance on external AI solutions, coupled with regulatory scrutiny, highlights potential political exposure for Apple. Observers note that similar disputes could extend to AI assistants and content discovery tools across the tech industry, especially as concerns about bias and censorship grow.
Market Implications for Big Tech
The stock drop underscores broader market caution toward AI investments and sector uncertainty. Investors are closely monitoring the performance of major technology companies as delays, integration challenges, and regulatory issues increasingly impact share prices.
For Apple, the intersection of AI development delays and political oversight of content curation may define its market trajectory for the coming months. Industry watchers suggest that the company’s ability to successfully implement Siri’s AI improvements while navigating regulatory scrutiny will be critical to restoring investor confidence.
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