Apple Inc. (AAPL, Financial) is currently grappling with numerous challenges including slow progress in artificial intelligence (AI) development, tariff issues, and ongoing disputes over Google payments and App Store commissions, leading to investor concerns about the upcoming Worldwide Developers Conference (WWDC). The company's stock has fallen 20% this year, marking its worst performance before a WWDC since at least 2010.
AI, a technology seen as transformative across industries, has not yet been a focus for Apple, which is lagging behind competitors like Microsoft (MSFT), Amazon (AMZN), and Google (GOOGL). Notably, Apple's AI assistant, Siri, has faced delays in updates, which might dampen its presence at this year's WWDC.
External risks also loom large. The recent tariffs imposed by President Trump on China-produced hardware threaten to squeeze Apple's profit margins. Additionally, legal challenges and regulatory scrutiny threaten Apple's profits from App Store commissions and Google's payments to be the default search provider on Apple devices.
The iPhone, Apple's flagship product, has seen stagnant growth, further challenging the company as AI has yet to emerge as a revenue driver.
