Apple is having a tough year in 2025. Its stock has dropped about 20% so far this year, making it the worst-performing among the Magnificent Seven tech companies. Recently, Apple’s stock fell for eight days in a row, the longest losing streak since January 2022.

Investor Sentiment: Bulls vs. Bears

  • Long-term investors such as Berkshire Hathaway, founded by Warren Buffett, continue to have faith. The Apple holdings represent more than 20% of its portfolio, and this stock has generated returns in excess of 600% since 2016. It is doubtful the macro environment will impact earnings or growth targets for Apple. 
  • There is speculation regarding the tariff on all iPhones made outside of the United States, putting Apple in a potentially bad position. The aforementioned statement caused shares of Apple to fall by 3% on that day. 
  • Some analysts express concern that it would result in tariffs increasing iPhone prices by 43%. So, an $799 entry-level iPhone 16 may actually cost around $1,142.

Anticipation Builds for WWDC 2025

The investors have their watch set to the next big show by Apple Worldwide Developers Conference, which is slated for June 9. Among the expectations are revolutionary news such as iOS 26, which is set for a complete re-envisioning based on the visionOS model. The new layout will include dynamic icons, more rounded surfaces, haptic inputs, pans, and floating navigation bars, and layered translucencies meant to unify the visual language across Apple devices.

Trading Strategy: Long Call Butterfly

Given the recent volatility in the market, traders are bullish on the long call butterfly options strategy. This means that they will buy one call option from a lower strike price, sell two call options at a middle strike price, and buy one call option from a higher strike price, all with the same expiration date. Thus, profit arises when the movement in the stock price is small, making the strategy more appropriate for periods of expected stability or low volatility.

Closing Insights

Drifting between a set of external economic pressures and internal strategic realignments, Apple currently finds itself encumbered by a myriad of challenges. The imposition of tariffs is a threat to its profit margins and pricing strategies, while the proposed WWDC 2025 could also be a chance to rebuild investor confidence with next-generation products, software announcements, and improvements. Developments are being actively watched by investors and traders alike to assess their prospects somewhere during the second half of the year.