Adobe is facing mounting pressure from rivals and Wall Street alike, as Apple moves to challenge its dominance in creative software and analysts warn the company is struggling to adapt to the rapid rise of artificial intelligence.

Already under threat from Canva in the fast-growing value content creation market, Adobe now faces a direct challenge from Apple, which has announced Apple Creator Studio, a new bundled subscription offering aimed squarely at creative professionals.

Apple said the new software suite will launch on the App Store on January 28, offering access to Final Cut Pro, Logic Pro, Pixelmator Pro, Motion, Compressor and MainStage under a single subscription — positioning it as a direct competitor to Adobe’s Creative Cloud.

The package will cost A$19.95 per month or A$193 per year, undercutting many Adobe subscription tiers.

Final Cut Pro, Logic Pro and Pixelmator Pro will be available on both Mac and iPad, while Motion, Compressor and MainStage will remain Mac-only.

The announcement comes as confidence in Adobe’s future weakens on Wall Street. Analysts have grown increasingly pessimistic about the company’s ability to maintain growth amid intensifying competition and accelerating AI adoption.

Several firms have downgraded the stock in recent months, with Goldman Sachs analyst Gabriela Borges issuing a sell rating, citing structural challenges to Adobe’s core business.

Concerns centre on Adobe’s position in the artificial-intelligence transition, particularly as AI tools increasingly allow users to generate images, designs and video content in minutes — work that previously required Adobe’s flagship software.

In some cases, businesses are now using AI tools such as ChatGPT to produce images in a fraction of the time it would take using Photoshop, raising questions about Adobe’s long-term relevance to both professionals and casual creators.

Oppenheimer analyst Brian Schwartz warned of a “challenging operating environment during the AI technology transition,” citing “uninspiring and decelerating top-line growth” as a key risk limiting the stock’s upside this year.

Speaking to Bloomberg, Schwartz also pointed to “inconsistent execution with product cycles” as a continuing concern.

Other analysts have questioned whether Adobe’s competitive position is as strong as previously believed, particularly as new platforms lower the barriers to entry for creative work.

In Australia, Adobe has drawn criticism for aggressive tactics to push subscriptions, including placing Adobe app icons on Windows operating systems without explicit user consent.

The stock has already fallen 6.4% this year, following a 20% decline in 2024 and a further 20% drop in 2025. Since the end of 2023, Adobe shares have slumped more than 45%, as both consumers and business customers shift toward AI-driven and alternative creative platforms.

Borges acknowledged that Adobe has successfully navigated previous technology shifts but warned that the current transition poses a more fundamental threat.

“AI is democratizing design, limiting growth in Adobe’s core creative professionals base,” she wrote. “We believe we are only near the beginning of a multi-year secular headwind.”