7 Biggest troubles Apple is facing right now
Apple
is reportedly facing 7 troubles – from the looming threat of tariffs and complex supply chain adjustments to its ongoing struggles in the rapidly advancing field of artificial intelligence – that require immediate attention of CEO Tim Cook. Bloomberg's Mark Gurman, who has listed multiple challenges the company is facing, says that Apple needs the same composure as it had when it managed COVID-related supply chain disruptions.
In his latest edition of Power On newsletter, Gurman listed 7 challenges that Apple is facing right now.
1.The fallout from tariffs on the company's operations, product development and device prices.
2.A judge ruling that Apple must stop taking a commission on in-app purchases and subscriptions paid via the web.
3.The threat of losing a roughly $20 billion-a-year deal with Google that made the search engine the default option on Apple's platforms.
4.Apple's ongoing struggles in artificial intelligence and the risk of falling even further behind its tech peers.
5.A Department of Justice lawsuit against the iPhone maker for allegedly anticompetitive practices.
6.Scrutiny into its business in the European Union, South Korea, Japan and elsewhere.
7.Finally, there's the sluggish sales in China, a former growth market, where local brands are making gains on the iPhone.
Tariff 'threat' needs utmost attention: Gurman
As per Gurman, in the immediate future, the threat of tariffs appears to be the most pressing concern. Cook acknowledged during a recent earnings call that the company anticipates incurring approximately $900 million in costs in the current quarter due to this issue.
While Apple has been strategically moving some production out of China, the long-term implications of potential reciprocal tariffs from the US on countries like Vietnam and India remain unclear, he noted.
Furthermore, President Trump's potential reaction to Apple's supply chain adjustments, rather than a return of manufacturing to the US, adds another layer of uncertainty to the situation, he explained.
Gurman also noted that Apple is also undergoing internal reorganisations within its AI, music and global affairs teams, and the upcoming iOS 18.6 is expected to feature its China-specific AI launch.
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