Apple's stock price has fallen for eight consecutive days, reducing its market value to the third largest in the world due to the threat of Trump's tariffs, competition in AI, and a weak Chinese market.

Apple Inc. is facing significant market challenges, as its stock price has fallen for eight consecutive days since early May, resulting in a market capitalization loss of over $390 billion, dropping it to the third largest company globally. Former U.S. President Trump has threatened to impose a 25% tariff on iPhones that are not made in the United States. Along with competitive pressure from AI and sluggish sales in the Chinese market, these three pressures are affecting Apple's future strategies and investor confidence.

Trump's Tariff Threats Cause Market Turbulence

On May 23, former U.S. President Trump once again singled out Apple on his social media platform, Truth Social, criticizing the company for moving its iPhone production line to India instead of the U.S. He threatened to impose a 25% punitive tariff on its products if manufacturing is not brought back to the U.S. Trump stated, "I've been telling Cook for a long time that iPhones sold in the U.S. should be made in the U.S., otherwise Apple must pay at least a 25% tariff."

These remarks quickly triggered a market reaction. According to the Economic Times, Apple's stock price fell by 3.02% that day, with a weekly decline of 7.57%. As of May 23, Apple's stock closed at $201.36, down about 19.4% year-to-date, far below its 52-week high of $260.10. Apple's market value has dropped from the world's top spot at the start of the year to third place, behind Microsoft and Nvidia.

Although analysts generally believe that Trump's tariff threats pose limited substantial impact on Apple, UBS analyst David Vogt pointed out that even with a 25% tariff, the impact on Apple's annual earnings per share would be only about $0.51. However, the market's sensitive reaction to policy uncertainty still led to significant stock price volatility.

Intensified AI Competition Pressure, Apple's Strategy Questioned

In addition to political risks, Apple's progress in AI is also under scrutiny from the market. Although Apple introduced "Apple Intelligence" at the 2024 WWDC as its first foray into generative AI, it is generally considered to lag behind competitors. Siri's inability to deliver expected memory functions has become one of the focal points of criticism.

Meanwhile, competitors like Google, Microsoft, and OpenAI are accelerating the advancement of AI products and ecosystems. At the 2025 I/O conference, Google announced that its AI model Gemini processes 480 trillion tokens per month, a 50-fold increase from last year, and has deeply integrated AI into products like Search, Gmail, and YouTube. Microsoft, through its collaboration with OpenAI, has strengthened its AI productivity tools and cloud services.

In a more symbolic move, OpenAI recently acquired an AI hardware startup founded by Apple's former chief designer Jony Ive for $6.5 billion, seen as a direct challenge to Apple's core hardware design advantage. Gene Munster, a partner at Deepwater Asset Management, pointed out that this is the first "substantial threat" Apple has faced from the AI field in 20 years.

Weak Sales in China Market, Market Share Overtaken by Huawei

The Chinese market has long been a key pillar of Apple's revenue, but its performance has been increasingly weak in recent years. According to data from Canalys and IDC, Apple's shipments in China fell by 8% compared to the previous year to 9.8 million units in the first quarter of 2025, with market share dropping from 15% to 13%, overtaken by Huawei. Annual shipments fell by 17%, the largest decline among the top five brands.

To stimulate sales, Apple has launched a series of promotional activities in the Chinese market. Since May 10, Apple has twice reduced iPhone prices and increased trade-in discounts. For example, the maximum trade-in discount for the iPhone 15 Pro Max has been raised to 5,700 yuan, which is about $791, nearly 70% of the starting price of a new device.

However, these promotional measures have not reversed the overall downward trend. Apple's fiscal 2025 Q2 financial report shows that revenue in Greater China fell by 2.26% year-on-year, the only region among the three major markets to experience negative growth. Analysts point out that Apple's competitiveness in China's high-end smartphone market is being strongly challenged by local brands like Xiaomi and Huawei.

Market Value Decreases Over $390 Billion, Falls Out of Global Top Two

Under multiple pressures, Apple's market value has shrunk dramatically. According to Bloomberg, since early May, Apple's market value has decreased by more than $390 billion. As of May 23, Apple's market value has been surpassed by Microsoft and Nvidia, falling from the world's first to third.

This change not only reflects investors' concerns about Apple's short-term business outlook but also highlights its challenges in AI transformation and global supply chain restructuring. Although Apple continues to expand its production base in India and attempts to reduce its reliance on China, future supply chain strategies remain uncertain in the face of Trump's tariff threats and geopolitical risks.

Apple's stock price has fallen for eight consecutive days, reducing its market value to the third largest in the world due to the threat of Trump's tariffs, competition in AI, and a weak Chinese market.

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