The company’s AI strategy is seen as a conservative, lagging Android competitor
Analysts warn that tariff threats could lead to higher costs
Apple stock has fallen 16% so far
April 29 (Reuters) – Apple is expected to face a range of problems with delays in the launch of key AI features and the impact of the Chinese tariff standoff on its business as it is expected to report on its report results on Thursday.
Even though Apple has benefited greatly from orders launched in January with early launches between January and March, Wall Street analysts still expect the company to report a drop in iPhone sales. That would be the second consecutive quarter of the decline.
So far, the Trump administration has exempted tariffs from electronic products, but Washington said there may be some taxes in the coming weeks. Uncertainty has made Apple’s stock account for 90% in China, down more than 16% this year and cut more than $600 billion from its market cap.
According to Reuters, Apple will reduce tariffs by shifting production of US-restricted iPhones to India. Analysts hope the company spreads some tariff costs through its supply chain while raising prices to a minimum to avoid losing market share.
“Tariffs are a sword for Apple – hanging, destructive and political accusations,” said Eric Schiffer, chairman of the patriarch group of a private equity firm that owns Apple stake.
Unlike competitors like Samsung and Alphabet’s Google, Apple is also slow, rolling out some of the important AI features promised at a developer meeting last year.
Common enquiry by users and investors The improvements to voice assistant Siri have been delayed until 2026, with Apple proposing ads that promote AI features that are not yet available.
AI capabilities are particularly important in China, and Apple has been losing market share in domestic competitors (such as Huawei). Apple has partnered with Alibaba to provide AI services in China, but has not provided a timeline for the timeline they launched.
iPhone shipments in the March quarter fell 9% in the March quarter, the only major smartphone manufacturer in the region to release a decline in the region, according to research firm IDC.
Despite these challenges, strong demand for the $599 iPhone 16e in India has given Apple the number one global smartphone sales this quarter, according to CounterPoint Research.
Jacob Bourne, an analyst at Emarketer, said Apple’s cautious, privacy-first approach to AI deployment slowed down the company’s launch and allowed the company to catch up.
“As tariffs threaten the cost structure, Apple is under pressure to move faster in terms of AI innovation and supply chain re-tuning – both capital-intensive.”
Overall, Apple’s revenue is expected to rise 4.2% in the second quarter from January to March, roughly matching the pace in the first quarter. Growth may be driven by optimistic iPad demand and services business growth.
iPad sales are expected to rise 9.1% in the second quarter, while Apple’s services business, which is the largest revenue generator after the iPhone, could grow 11.8%.
(Reported by Akash Sriram in Bangalore; Editors of Sayantani Ghosh and Shounak Dasgupta)
