Apple May End Up Acquiring Perplexity Like It Did With Beats In 2014, Says Dan Ives—Consumers Need ‘Reasons To Upgrade’ As iPhone Maker Falls ‘Way Behind’ In AI Race – Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

Following Apple Inc.‘s AAPL WWDC 2025, Dan Ives, global head of technology research at Wedbush Securities, said the tech giant ‘might be forced’ to pursue a merger or acquisition with an AI platform like Perplexity, or one of several others—similar to its 2014 acquisition of Beats—to remain competitive in AI and meet growing consumer demands.

What Happened: During an interview with DW Business on Tuesday, Ives discussed Apple’s current position in the AI race, highlighting the company’s lag behind competitors like Alphabet Inc.’s GOOG GOOGL Google, Microsoft Corporation MSFT and AI startups like OpenAI.

He highlighted that Apple’s iOS ecosystem could provide an advantage, but the company needs to act quickly to leverage AI.

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He also noted that consumers need reasons to upgrade, especially when AI advancements are becoming a key driver in technology. Without a strong AI offering, Apple risks falling behind in a critical area that’s shaping the future of tech.

“On one hand, you have a golden install base in the world … you got to monetize on AI,” he said, adding, “Right now they’re way behind and I think that’s a concern for investors and I’d say even from a consumer perspective. You need reasons to upgrade.”

When asked about the argument that AI isn’t yet aligned with Apple’s brand, Ives suggested that Apple must participate in AI or risk being left behind.

“I do think maybe culturally in some of their standards … but look, the reality is they’re going to have to accelerate this because it’s the biggest technology innovation in the last 40-50 years and Apple can’t be on the outside looking in,” he stated.

Perplexity did not immediately respond to Benzinga‘s request for comment on whether the AI firm is open to acquisition.

See also  Ford Motor vs. Toyota: Assessing Hybrid EV Stocks The Rise of Hybrid EVs in an EV Market

The landscape of electric vehicles (EVs) is shifting, with consumers showing a growing preference for hybrids over purely electric vehicles. The surge in hybrid sales, including plug-ins, paints a compelling picture. In a recent year, Americans purchased a record 1.2 million EVs, marking a 46% yearly increase, while hybrid sales skyrocketed by 65%. Hybrids, encompassing plug-ins, have now secured a 10% share of new car purchases in the U.S., outpacing the market penetration of pure electric vehicles.

The Regulatory Environment Shaping Hybrid EV Market Growth

The regulatory landscape is tilting in favor of hybrid and plug-in hybrid electric vehicles as the U.S. administration sharpens its focus on reducing carbon emissions from passenger vehicles. The increasing stringency of auto emissions standards is expected to elevate the prospects for manufacturers of these types of vehicles.

Comparing Ford Motor and Toyota in the Hybrid EV Market The Case for Ford Motor Stock

One heavyweight in the race for hybrid EV market dominance is Ford Motor Company (F), a Michigan-based automobile manufacturer founded in 1903. Ford's diverse product portfolio spans trucks, commercial vehicles, SUVs, and luxury models under the Lincoln brand. With a market capitalization of $51.89 billion, Ford has seen a 14.5% rise in its stock price over the past 52 weeks, albeit trailing the broader S&P 500 Index, which surged by 30.5% during the same period. However, Ford has struggled over the long term, delivering a 15% decline in the last decade.

Ford made a strategic move by reinstating its dividend payments after the pandemic-induced suspension in 2020. The company raised its quarterly dividend to 15 cents per share, and also issued a special dividend of 18 cents per share. Currently yielding 4.6%, Ford's annual dividend of $0.60 per share is well-supported by its payout ratio of 61.4%, indicative of sound dividend coverage from adjusted earnings.

From a valuation standpoint, Ford appears attractively priced at 6.85x forward adjusted earnings and 0.29x sales, presenting a substantial discount relative to both industry peers and its own historical averages.

Ford's Q4 Earnings Performance

In the competitive EV market, Ford faced challenges, with its "Model e" segment incurring an EBIT loss of $4.7 billion, translating to a significant loss of $64,731 per EV sold in 2023. However, Ford saw a surge in hybrid sales, with Q4 figures demonstrating a remarkable 55% growth, amounting to 37,229 vehicles sold.

In its latest earnings report for the fourth quarter, Ford recorded a total loss of $526 million, primarily due to exceptional charges related to pension programs and international operational reorganizations. The company's profitability was further affected by heightened labor costs resulting from an extended strike by the United Automobile Workers (UAW) union. Despite these challenges, Ford outperformed market expectations, posting adjusted earnings of $0.29 per share and revenue of $43.21 billion, surpassing analysts' projections.

Image source: www.barchart.com The Battle of the Auto Giants: Ford vs. Toyota

Why It’s Important: Apple’s new iOS 26 design, “Liquid Glass,” introduced at WWDC 2025, is also facing significant backlash online. The translucent, fluid interface spans across various elements like buttons and the Control Center, aiming to enhance user experience.

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Despite Apple touting its innovation, people on social media, including investor Ross Gerber, have expressed strong disapproval, with some saying Steve Jobs would not have approved.

Previously, Ives also characterized the event as highlighting “slow and steady improvements,” but ultimately dismissed it as “a yawner.”

On the other hand, Gene Munster of Deepwater Asset Management said Apple isn’t yet ready to reveal its more advanced AI efforts but has time to catch up.

He noted the most important WWDC 2025 announcement was the Foundation Model framework, which enables easier on-device integration of Apple Intelligence for developers.

Price Action: Apple shares have declined 18.48% year-to-date and are down 6.71% over the past 12 months, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings reflect a downward trend for Apple across short, medium and long-term periods. Additional performance metrics can be found here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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