Apple Faces Investor Scrutiny Over Tariffs, AI Strategy Amid Sales Decline

Apple is facing mounting investor concerns over its slow rollout of key AI features and potential risks from the ongoing U.S.-China tariff dispute, especially as iPhone sales are expected to decline for a second consecutive quarter. The company benefited from a surge in demand for its budget iPhone 16e ahead of possible tariffs, but future electronics tariffs remain a looming threat that has contributed to a sharp fall in Apple’s share price and market value. To mitigate tariff impacts, Apple is shifting some iPhone production to India, though this presents challenges due to limited capacity and quality control issues. Apple’s AI strategy has lagged behind competitors like Samsung and Google, with significant features such as Siri improvements delayed until 2026 and some AI-related advertisements retracted due to unmet promises. In China, where Apple’s market share is waning, it has partnered with Alibaba for localized AI services, but no launch date has been set. Despite these hurdles, Apple's services and iPad divisions are expected to drive some revenue growth, highlighting the company's efforts to adapt amid technological and geopolitical pressures.