Hey everyone, it’s Mark. Apple is facing one of its toughest periods yet as it copes with the threat of tariffs, supply chain challenges, AI struggles and potential turmoil in its services business. Also: The company’s China AI launch will likely be part of iOS 18.6, reorganizations extend to Apple’s music and global affairs teams, and flying taxi startup Archer hires a new head of AI.

Last week in Power On: Apple begins breaking up its AI team with changes to Siri and robotics groups.

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The Starters

Apple’s Tim Cook opening a new retail store in China. Photographer: Bloomberg/Bloomberg

Apple Inc. has long shown that it can navigate a potential crisis with serenity, especially under the guidance of Chief Executive Officer Tim Cook.

When the iPhone was under siege a decade ago by phablets, Apple reacted calmly and methodically. It delivered larger models and ultimately saw massive returns. Around the same time, Apple managed a dispute with the FBI over device encryption in the wake of a mass shooting. And more recently, the company resolved Covid-triggered supply chain snarls so it could keep launching and shipping products.

That’s all to say Apple has dealt with a lot — and typically done it effectively. But the company is now faced with several once-in-a-decade problems at the same time. That threatens to put Cook and his team in their most challenging position yet.

These are some of the biggest issues Apple has to address right now...

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