It appears to be lack of competence given they lied about the initial features of Apple Intelligence.

First, they touted features that no one actually built and then fired their AI figurehead “leader” who had no coherent execution plan—also, there appears to have been territorial squabbling going on, about who would build what.

How on earth did Apple Senior Management allow this to unravel? Too much focus on Services, yet ignoring their absolute failures with Siri and the bullshit that was Apple Intelligence, when AI spending is in the trillions?