Apple Stock Plunges 5% Amid FTC Scrutiny and Siri Delays

Apple's stock experienced its worst single-day decline since April 2025, falling 5% on Thursday amid mounting regulatory pressure and product development concerns. The drop came as the Federal Trade Commission (FTC) intensified scrutiny of Apple's News app, while reports surfaced about significant delays in the company's much-anticipated Siri upgrades.

FTC Investigation Targets Apple News App

The FTC's increased attention centers on allegations that Apple News promotes predominantly "left-wing" outlets while suppressing conservative sources. FTC Chair Andrew Ferguson has formally requested that Apple CEO Tim Cook review the app's terms of service and content curation practices. This regulatory pressure adds to Apple's growing list of antitrust challenges, including ongoing investigations into its App Store practices and alleged monopolistic behavior in the smartphone market.

The investigation follows years of complaints from conservative media outlets and political figures who claim Apple's content algorithms systematically disadvantage right-leaning publications. The timing is particularly sensitive as Apple prepares for potential regulatory battles ahead of the 2026 midterm elections.

Siri Development Delays Raise Concerns

Compounding Apple's challenges are reports of significant delays in the company's next-generation Siri capabilities. Sources indicate that Apple's planned AI-powered Siri upgrades, which were expected to debut alongside iOS 19 later this year, are facing technical hurdles that could push back their release timeline.

The delays are particularly concerning given Apple's position in the rapidly evolving AI landscape. While competitors like OpenAI, Google, and Anthropic have made substantial progress in conversational AI, Apple has struggled to match their capabilities. The company's more cautious approach to AI development, prioritizing privacy and on-device processing, may be contributing to these delays.

Market Reaction and Broader Implications

The 5% stock decline reflects investor anxiety about Apple's ability to navigate both regulatory challenges and technological competition. Apple's market capitalization has already lost significant value this year as concerns mount about the company's growth prospects in key markets like China and its ability to innovate in emerging technology categories.

Analysts note that the combination of regulatory scrutiny and product delays creates a particularly challenging environment for Apple. The company has historically relied on its ability to deliver polished, timely product updates to maintain consumer loyalty and justify premium pricing. Any perception that Apple is falling behind in AI capabilities could have long-term implications for its competitive position.

Industry Context and Competitive Landscape

The timing of Apple's challenges coincides with significant developments in the broader tech industry. Anthropic recently raised $30 billion at a $380 billion valuation, while OpenAI continues to push forward with new AI models and capabilities. Meanwhile, Google has updated its Gemini 3 Deep Think model to better solve modern science, research, and engineering challenges.

Apple's struggles highlight the broader challenges facing established tech giants as they attempt to pivot toward AI-driven futures. The company's traditionally closed ecosystem and emphasis on privacy create unique constraints that may be hampering its ability to compete in the fast-moving AI space.

What's Next for Apple

Industry observers expect Apple to face increased pressure to demonstrate progress on both regulatory compliance and product innovation fronts. The company may need to accelerate its timeline for AI-related announcements or risk further erosion of investor confidence.

Additionally, Apple's legal team will likely need to prepare for an extended battle with the FTC over the News app allegations. The outcome could have significant implications for how tech platforms curate and present news content, particularly in an era of heightened political polarization.

The coming months will be critical for Apple as it attempts to address these challenges while maintaining its position as the world's most valuable company. Investors and industry watchers will be closely monitoring the company's next moves in both the regulatory and product development arenas.

Featured image: Apple's stock dropped 5% on Thursday, its worst day since April, following FTC scrutiny of Apple News and reports about delays with Siri