Apple is navigating mounting challenges on multiple fronts. As the company raises prices across several of its product lines in response to rising component costs, it is also facing a negative market reaction and growing regulatory pressure in Russia.
On June 25, Apple shares fell 6.1%, marking the company’s steepest single-day decline since April 2025. The selloff erased approximately $265 billion from Apple’s market capitalization, while premarket trading the following day showed only a modest recovery of around 0.5%.
According to Apple CEO Tim Cook, the price increases are primarily driven by a global shortage of memory chips and rising manufacturing costs. He noted that Apple had absorbed higher production expenses for an extended period but could no longer maintain its previous pricing strategy. As part of the new pricing policy, Apple increased prices for several products:
- MacBook Neo: from $599 to $699
- MacBook Air: from $1,099 to $1,299
- 14-inch MacBook Pro: from $1,699 to $1,999
- iPad Air: from $599 to $749
- 11-inch iPad Pro: from $999 to $1,199
Analysts at Counterpoint Research also expect iPhone prices to rise in the coming months, with higher-storage configurations potentially increasing by as much as $200.
Beyond investor concerns, Apple is also confronting regulatory challenges in Russia. According to Russian media reports, Apple has removed nearly all applications associated with VK, one of the country’s largest technology companies, from the App Store. The affected services include VK, Odnoklassniki, VK Music, VK Messenger, VK Video, VK Dating, Mail, Dzen, Yula, and several other applications.
The restrictions are reportedly not limited to Russian App Store accounts, meaning users cannot redownload the apps even after changing their account region. VK confirmed that the applications were removed without prior notice. Existing installations continue to function, but users are no longer able to download updates or reinstall the apps through the App Store. Apple has not publicly disclosed the specific reason behind the removals. In previous cases involving Russian applications, the company cited compliance with international sanctions, although it did not specify which sanctions applied.
Following the App Store dispute, Russia’s Ministry of Digital Development submitted a request to the Federal Antimonopoly Service (FAS), arguing that Apple is failing to comply with local legislation requiring support for domestic app distribution platforms such as RuStore. If regulators decide to take further action, Apple could face additional restrictions on the sale of its products in Russia. While discussions have fueled speculation about a broader ban, no official decision has been announced.
Apple is currently dealing with two different types of pressure. On one side, rising component costs and supply chain constraints are forcing the company to increase product prices, raising concerns among investors about future demand and profit margins.
On the other, geopolitical tensions and evolving regulatory requirements are making it increasingly difficult for global technology companies to operate across multiple jurisdictions. Together, these developments illustrate that Apple’s challenges are no longer limited to product innovation or competition. The company must now navigate an environment shaped by supply chain disruptions, geopolitical uncertainty, and increasingly complex regulatory frameworks—factors that are becoming just as important as technological leadership.
