Apple is currently facing a very complex balancing act with very high stakes

Apple Park City store. | Image credit — Apple
Breaking down Apple's current troubles
One key area of concern involves tariffs and global trade. Apple expects tariffs to add significant costs, possibly around $900 million just in the current quarter. This financial pressure is a major reason why the company is speeding up plans to move manufacturing for some products, like iPhones bound for the U.S., out of China and into countries such as India and Vietnam. This is a major shift in its long-standing production strategy.
On the technology side, Apple appears to be lagging behind rivals in the race for advanced artificial intelligence (AI). Competitors like Samsung and Google have been quicker to roll out impressive AI features that can create content or automate tasks on their smartphones. This perceived delay could make current iPhones seem less advanced and potentially impact the development and appeal of future Apple products, like rumored smart glasses.
Apple is also facing difficulties in the important Chinese market. Sales growth has slowed down as local companies like Huawei and Xiaomi offer strong competition, often with popular features like foldable screens or advanced AI that Apple doesn't yet offer in the region. Apple must also carefully handle relationships between the U.S. and Chinese governments, especially as it moves production.

Tim Cook welcomes developers to WWDC 2019. | Image credit — Apple
How this compares to other tech giants in the U.S.
While Apple contends with these issues, its main competitors are pushing forward. Samsung continues to lead in the foldable phone market and heavily promotes its Galaxy AI features. Google is integrating its powerful Gemini AI more deeply into Android phones. Their progress sets a high bar and puts extra pressure on Apple to innovate while also defending its current business practices.

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