Apple Faces Challenges in 2025
Apple’s shares fell by 18.1% in the first half of 2025, following a 30% gain in 2024, amid ongoing uncertainties from the U.S.-China trade tensions. The company’s high valuation, reflected in a P/E ratio of 40, led to increased scrutiny after the Trump Administration imposed significant tariffs on Chinese goods.
As of April 2, 2025, tariffs soared up to 145% before being temporarily eased. Apple’s dependency on China for manufacturing, with approximately 90% of iPhones produced there, raises concerns over potential margin impacts. Additionally, delays in the rollout of the new AI-powered Siri, now expected in 2026, and talks with third-party AI models have heightened doubts about Apple’s competitive position in artificial intelligence.
