TradingKey - Amid escalating tariff threats and concerns over weakening product momentum, Apple (AAPL.US) has seen its stock fall for eight consecutive days, making it the only member of the “Magnificent Seven” tech giants to decline during a broader market rebound in May. Some observers are now suggesting that Apple’s slump may be a lesson in the cost of "falling behind or refusing to play along."
As of Friday, May 23, Apple shares had fallen for eight straight trading sessions, closing at $195.27. While the Nasdaq Composite gained over 7% in May and the S&P 500 rose 3.5%, Apple underperformed, dropping 8% in May alone — and is now down 22% year-to-date in 2025.
The recent selloff was intensified by new comments from President Donald Trump, who on the 23rd said that iPhones sold in the U.S. must be made in America, or Apple would face tariffs of at least 25%.
Wall Street analysts warn that Trump’s tariff threat could further pressure Apple’s already strained earnings outlook.
Bloomberg analysts estimate that if Apple were to pass the tariff costs onto consumers through higher iPhone prices, it would risk losing significant market share in the U.S. If Apple chooses instead to absorb the costs, its gross margin could drop by 3–3.5 percentage points in fiscal 2026.
Trump has long pushed for a return of American manufacturing, and so far, Apple hasn’t built any smartphone production lines in the U.S.
Well-known Apple supply chain analyst Ming-Chi Kuo noted that, for now, it remains cheaper for Apple to pay the 25% tariff than to move iPhone assembly back to the U.S.
Beyond trade policy, Apple’s stock weakness also reflects concerns about its lagging AI strategy.
Analysts at Baird pointed out that Apple faces a bigger challenge: its integration of Siri with Apple Intelligence appears stuck in development limbo. Meanwhile, competitors are pushing ahead with transformative generative AI services.
In contrast, DA Davidson analysts remain optimistic about Apple’s ecosystem strength, arguing that the recent stock weakness doesn't reflect deteriorating fundamentals — but rather the growing tension between Trump and Apple CEO Tim Cook.
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