Trump Tariffs Add to Apple’s Long-Standing Innovation Woes

Even before President Trump’s prices threaten to upset Apple’s manufacturing activities in China, the company’s struggle to make new products led some people inside his sumptuous Silicon Valley headquarters to wonder if the company had somehow lost its magic.

The prices, which were introduced on April 2, made Apple lose $ 773 billion in market capitalization in four days and briefly lose its position as the most precious company in the world. But investors had already started to turn to the company, sending the price of its stock dropping 8% in the first four months of the year, double the drop in S&P 500.

Apple had hoped to rekindle its fortune in the past year with a virtual reality headset, the pro vision and an artificial intelligence system called Apple Intelligence. Helmet sales were however a disappointment and the signature characteristics of the AI ​​system were postponed because it did not work as well as the company expected.

The problems of the company stressed how its reputation for innovation, formerly considered as a fundamental element of its brand, has become an albatrossess, fueling anxiety among employees and frustration among customers. And the initiates of the company fear that Apple, despite its years of profits defying gravity, is paralyzed by political intestine struggles, the pinch of Penny and the talent drain which often believes large companies, according to more than a dozen employees and ancient and current advisers.

Apple refused to comment.

It has been a decade since the releases of Apple’s latest commercial successes: Apple Watch and AirPods. His services like Apple TV + and Fitness +, which he introduced in 2019, is lagging behind the competitors in the subscriptions. Half of its sales still come from the iPhone, an 18 -year -old product that gradually improves almost every year.

Although sales of pro vision have been disappointing, Apple’s problems with Apple Intelligence have exposed dysfunction within the organization.