Apple's Trading Volume Drops 27.62% to $7.225 Billion Despite Stock Price Rise Amid Market Challenges and Strategic Shifts

On May 9, 2025, Apple (AAPL) saw a trading volume of $7.225 billion, marking a 27.62% decrease from the previous day. Despite this, the stock price rose by 0.53%, marking two consecutive days of gains and a total increase of 1.16% over the past two days.

Apple is facing challenges in the Chinese market due to the absence of a foldable iPhone option and the lack of advanced AI features. This has led to a loss of market share in the region, which is a significant concern for the company. Additionally, Apple is grappling with potential tariff impacts, which could result in a $900 million cost increase in the June quarter. The uncertainty surrounding future tariff changes adds to the company's challenges.

Apple's strategic shift in production, moving most of its US-bound iPhones and other devices away from China, is another significant development. This move is likely in response to geopolitical tensions and trade policies, aiming to mitigate risks associated with manufacturing in China. The company's decision to shift production could have long-term implications for its supply chain and operational costs.

In the search engine landscape, Apple's senior vice president of services, Eddy Cue, testified that the company saw a drop in web searches via Safari for the first time last month. This decline is attributed to users opting for generative AI-based services like OpenAI's ChatGPT and Perplexity. Apple is considering adding these platforms to its search options in Safari, which could impact its revenue-sharing agreement with Google. Google currently pays Apple roughly $20 billion annually to set Google Search as the default search engine in Safari. The potential termination of this agreement, as part of the Justice Department's antitrust case against Google, adds another layer of complexity to Apple's strategic considerations.