Apple is no longer the uncontested behemoth of the 2010s, when its smartphones seemed like perpetual cash cows, especially when paired with a services ecosystem that excelled in locking in customers. Now, with the upcoming AI devices from the likes of OpenAI promising to do away with smartphones entirely, as agentic AI applications render the concept of smartphone apps obsolete, Apple is turning to its one-time arch rival, Google, for salvation.
A few days back, reports emerged that Apple was internally testing its Siri smartphone assistant by powering it with Google's Gemini AI model. Specifically, Apple purportedly asked Google to develop a bespoke Gemini-based AI model that would run on Apple’s Private Cloud Compute servers.
If successful, Apple could deploy this bespoke Gemini AI model from Google across its Safari browser and Spotlight search, which allows iPhone users to bypass Google entirely by offering answers to simple queries on popular topics, including information about actors, musicians, TV shows, and movies, among other things.
Other reports have indicated that Apple is also trying to develop its own AI-powered search tool with the help of Google to take on the likes of OpenAI and Perplexity. The feature, known internally as "World Knowledge Answers," will enable users to search for information and receive AI-generated summaries from the web.
Against this backdrop, UBS has now come forward with a fresh note. While conceding that no "material announcements regarding Siri Apple Intelligence features" are expected until "next Spring" following a largely underwhelming WWDC25 in June that saw only "incremental software updates," the banking behemoth goes on to reference a "cohort of investors that expect Apple to announce an AI partnership, potentially with Google, based on our conversations." Accordingly, it appears that UBS thinks an Apple-Google AI-related tie-up is likely only a question of when and not if, as per its conversations with key clients.
Elsewhere, Apple is slated to hold its "Awe Dropping" event on Tuesday, where it is largely expected to unveil four new smartphones, including a slim Air version, along with a slew of other hardware products. UBS, however, does not seem very excited about the prospects for the iPhone 17 Air:
"While we acknowledge that a thinner device would introduce a relatively new form factor for the iPhone, we think that it will have a muted impact on consumer purchasing decisions and thus, limited upside to our iPhone forecasts for the Sept and Dec quarters."
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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