A new announcement by Openai on Wednesday added to Apple’s struggles with an uncertain business atmosphere, which has been repeatedly called to transfer the production capabilities of US President Donald Trump’s iPhone manufacturer to the United States.
Apple’s shares fell 0.5% on Thursday for their seventh direct negative session after underperforming again on Wednesday. The fall has been partially attributed to the announcement of the acquisition of a startup focused on artificial intelligence-fuel hardware by Openai. The firm was co-established by Apple’s legend Johnny Ive.
Also read Apple to transfer all American iPhone assembly to India by 2026 amid trade war with China
Being the world’s largest company in early May, in terms of market capitalization, Apple fell to third place behind Microsoft Corp and Nvidia Corp, Bloomberg reported.
The report stated that the threat from fellow AI contestants, Trump’s frequent calls have added political uncertainty among investors to move the company’s manufacturing process.
Earlier this month, the US President said he had “a problem with Tim Cook,” and claimed that he had asked Apple’s CEO to stop the manufacture of plants in India.
Over the last five years, India has emerged as one of the largest manufacturing centers of Apple iPhones, with the company’s assembly lines in the country, a 22 billion dollar smartphones have been churned in 12 months in the last financial year. The US -based company produced 60 percent more iPhone in India than in the previous year.
Also read IPhone 17 pro -production in India to get a push despite Trump’s zing
Randy Hare, director of Equity Research at Huntington National Bank, told Bloomberg that the aim of the US President on Apple was a red flag for him. He said, “Trump has continued to exclude the apple and feels that there is something against him. This does not mean that Trump is going to do anything else, but you cannot guess what is going to happen, and this caution me,” he said.
Apple’s fate is also associated with the tariff war between the US and China, one of the major production bases and markets for the company. Despite the US and China agreed to temporarily reduce low tariffs on each other, the iPhone manufacturer’s stock is still at least 16% after the announcement of tariffs in early April.
Also read America, China agrees to slash business tariffs for 90 days
Lamar Vilere, a partner and portfolio manager at Wiler & Co., does not see the possibility of law in the US with the aim of carrying forward the goals of Trump.
“It pays too much attention to Trump, it’s not all good, but I think investors are growing for their complaints. It is not in any real trouble for not building in the US, and we are not going to see the law on anger against a company,” Wiler told Bloomberg.
Apple said in February that it would spend more than $ 500 billion in the United States in the next four years and hire 20,000 employees, a declaration to please President Donald Trump, which has pushed American companies to move the manufacturing house.
