Apple Inc. shares have experienced a decline in 2025, driven by investor anxieties regarding the weakening Chinese market and reports indicating lower iPhone shipments. The company's stock has fallen for five consecutive days, marking its longest losing streak since April. Analysts attribute the downturn to unfavorable smartphone data from China and reports of Apple offering discounts in the region. This dip suggests that investors, who previously overlooked concerns about lukewarm reception to the AI-powered iPhone and potential tariff risks under the incoming Trump administration, are now losing confidence.
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The drop indicates that investors who had looked past a lukewarm response to the artificial intelligence-infused iPhone and tariff-related risks under the incoming Trump administration may have lost patience. The drop comes after the shares rose more than 30% in 2024. The stock hit a record high in December, when investors were betting that Apple will ultimately become a winner in AI and that Chief Executive Officer Tim Cook would be able to overcome any tariff threats.But concerns about China have fomented negative sentiment in recent sessions.
“Apple’s heavy reliance on China is a concern and has been for a couple years. It is a sizable consumer market, so obviously weakness there is a risk,” said Jack Ablin, chief investment officer at Cresset Wealth Advisors. “China is also a major manufacturing hub, and while Tim Cook has taken steps to diversify production, our deteriorating relationship with China has been a risk even before we got this new talk of tariffs,” he added.
Apple’s most recent quarterly report showed a decline in China revenue last quarter, adding to concerns about its overall growth trajectory. Sales growth has been negative in five of the company’s past eight quarters, and while it’s expected to pick up next year, the pace is seen below that of other megacaps, according to estimates compiled by Bloomberg.
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