Apple’s shares have fallen 19% so far this year. The company now faces an antitrust investigation by the U.S. Department of Justice and a legal standoff with Epic Games over App Store rules. Together, these pressures mark one of the toughest periods Apple has seen in years.
Trump Demands U.S. iPhone Production
Former President Trump posted on Truth Social that Apple must build iPhones in the U.S. or pay a 25% tariff. He extended the same demand to rival Samsung. Apple has already shifted much production to India and Vietnam, avoiding earlier rounds of tariffs. CEO Tim Cook said on Apple’s Q2 earnings call that most U.S. iPhones this quarter will come from India, and nearly all iPads, Macs, Watches, and AirPods will come from Vietnam. But he warned the company will still absorb about $900 million in tariffs this quarter. Moving iPhone assembly back to the U.S. would take years and could drive retail prices up by hundreds of dollars, analysts say.
Siri Update Delayed, AI Efforts Lag Behind Rivals
Apple has postponed the release of its improved Siri until later this year. The delay highlights Apple’s struggle to keep pace with Google and Samsung in artificial intelligence. In January 2024, Apple launched its “Apple Intelligence” platform—months after similar services from its competitors. Meanwhile, former design chief Jony Ive has teamed up with OpenAI’s Sam Altman on a new consumer AI device. Industry observers say Apple must answer hard questions about its AI strategy at its Worldwide Developers Conference on June 9, where it is expected to preview iOS 19, iPadOS 19, and macOS updates.
Antitrust Suits Threaten App Store Model
Apple is defending itself in two major antitrust cases. The U.S. Department of Justice sued Apple in March 2024, accusing it of illegally monopolizing the smartphone market. The suit claims Apple makes it hard for users to switch to rival devices and restricts app developers’ options. A loss could force Apple to open its App Store to outside payment systems.
In a separate case, Epic Games challenged Apple’s App Store fees. Although a judge ruled that Apple did not break antitrust laws, she found that Apple must let developers offer alternative purchase methods. Apple then introduced a new fee for those outside-App-Store sales. The judge has referred the matter to prosecutors for possible further investigation.
Google Search Deal Under Scrutiny
Apple also faces fallout from the Justice Department’s antitrust suit against Google over search engine dominance. One focus is Google’s $20 billion-a-year deal to remain the default search choice on Apple devices. If that pact is undone, Apple’s lucrative services revenue could suffer.
Cook’s Biggest Test Yet
Bob O’Donnell of TECHnalysis Research calls this “arguably the biggest test that Apple has faced in a long time.” Tim Cook has navigated past crises—from iPhone delays to pandemic-driven supply shortages—but 2025 may be his toughest challenge. With legal battles, tariff threats, and a fast-moving AI market, Apple’s leadership must chart a clear path forward.
