Apple -investors seek clarity on rates, AI strategy as sales of iPhone drop

* The AI ​​strategy of the company is considered conservative, deterioration of Android competitors * Rates threats can lead to higher costs, and analysts warn * Apple shares by 16% so far by Akash Sriram on April 29 (Reuters)-will be expected to face a series of questions about the delayed role of the most important AI function and on the business, while on the results of the results. Although Apple has benefited from a rush of orders for the recently released Lower Prices iPhone 16th in the January-March period before possible rates, Wall Street analysts still expect the company to report a small drop in iPhone sales. It would be a second quarter of declines. The Trump administration has saved electronics of rates so far, but Washington has indicated that some charges may come in the coming weeks. The uncertainty has sent stocks of Apple, which earns 90% of its products in China, from more than 16% from this year and wiped over $ 600 billion from the market value. Apple will try to reduce rates by moving the production of US bound iPhones to India, Reuters reported. Analysts expect the company to spread some of the tariff costs through its supply chain, while the price increases are minimized to lose the market share. “Rates are a sword of Damocles for Apple-hanging, disruptive and politically charged,” said Eric Schiffer, chairman of Patriarch Organization, a California private equity firm that owns Apple shares. Unlike opponents such as Samsung and Alphabet’s Google, Apple was also slow to roll out some important AI features that he promised at its developer conference last year. Improvements to the voting assistant Siri, a general demand from users and investors, were delayed until 2026, and Apple drew an advertisement that promoted AI features that were not yet available. AI functions are especially important in China, where Apple has lost market share to domestic competitors such as Huawei. Apple had a partnership with Alibaba to offer AI services in China, but has not yet offered a timeline for their launch. The iPhone shipping in China fell by 9% in the March quarter, the only most important smartphone manufacturer who delivered a decline in the region, according to the data from the research firm IDC. Despite these challenges, the strong demand for the $ 599 iPhone 16E in India Apple helped to find the best place for global smartphone sales in the quarter, according to Counterpoint Research. Emarketer analyst Jacob Bourne, Apple’s cautious, privacy-first approach to AI deployment delayed and made the company play. “With rates threatening cost structures, Apple faces the pressure to move faster on AI innovation and the supply chain re -alignment -both are capital intensive.” In general, Apple’s turnover is expected to rise by 4.2% in the January-March period, its fiscal second quarter, which matches the rate in the first quarter. Growth is likely to be driven by optimal demand and growth in services. Ipad sales are expected to rise by 9.1% in the second quarter, while the services business, Apple’s largest income generator to the iPhone, is likely to grow by 11.8%. (Reporting by Akash Sriram in Bengaluru; Editing by Sayantani Ghosh and Shounak Dasgupta) first published: 29 Apr 2025, 04:29 pm Ist