Apple is bracing for potential disruption to its supply chain as intelligence briefings warn of a possible Chinese attack on Taiwan by 2027, according to sources familiar with the matter. The warnings, delivered to Apple CEO Tim Cook and other tech leaders in 2023, highlight the critical reliance of the technology sector on Taiwan Semiconductor Manufacturing Company (TSMC), which produces approximately 90% of the world’s most advanced chips.
The briefings prompted Apple to commit roughly $100 billion to bolster semiconductor production within the United States, in collaboration with TSMC and Intel, according to sources. This move comes as Washington views the dependence on TSMC’s Taiwanese facilities as a significant vulnerability for the U.S. Economy. A disruption to chip production could trigger an economic crisis comparable to the Great Depression, with global costs potentially exceeding $10 trillion.
Meanwhile, Apple is preparing a series of product launches in the coming months. Production of the iPhone 18 Pro and Pro Max is underway, with a focus on reducing the size of the “Dynamic Island” display notch. Sources indicate Apple is attempting to place some Face ID components under the screen and minimize the front-facing camera, aiming for a more streamlined aesthetic. Similar rumors circulated around the iPhone 17, but did not materialize.
The company is also gearing up to release a foldable iPhone, reportedly designed in collaboration with Samsung. The internal display fold is expected to be less than 0.15mm thick, with an angle of less than 2.5 degrees, ensuring a smooth transition. The device will feature a book-like design, similar to the Samsung Z Fold, with a 5.5-inch external display and a dual-camera system. It is slated for release alongside the iPhone 18 Pro in September.
Beyond smartphones, Apple is expanding its audio offerings with a high-end version of the AirPods Pro, expected before the end of the year. These new earbuds will incorporate ultra-sensitive infrared cameras for gesture-based control and utilize Apple’s AI to analyze the user’s environment, offering a personalized audio experience, particularly when paired with Apple Glass or an iPhone. The price point will be higher than standard AirPods.
A more affordable MacBook, priced between $699 and $799 (with a $100 discount for students), is also on the horizon. Initially planned for late 2025, mass production has been delayed until the first quarter of 2026 due to rising component costs. The device will feature a 12.9-inch display, the A18 Pro chip from the iPhone 16 Pro, 8GB of RAM, and USB-C ports. It will be available in a range of colors, including yellow, green, blue, and pink.
Apple’s expansion into AI is also evident in its recent acquisitions. The company acquired Q.ai, an AI-powered audio technology firm, for approximately $2 billion, its second-largest acquisition after the $3 billion purchase of Beats in 2014. It also acquired invrs.io employee Martin Schubert, a specialist in AI-based solutions for augmented and virtual reality, in October 2025.
In a separate development, OpenAI is collaborating with former Apple design chief Jony Ive on a range of AI-powered devices, including a smart earbud expected in early 2027. The earbud, priced between $200 and $300, will feature a camera for facial recognition and will learn user preferences. Preliminary work is also underway on a smart lamp and connected glasses, potentially launching in 2028 or later.
Apple reported record iPhone sales in Europe in 2025, shipping 36.9 million units, a 6% increase year-over-year, capturing a record 27% market share. This success came despite a 1% overall decline in the European smartphone market. The company also announced plans to begin assembling Mac minis in Houston, Texas, by the end of the year, fulfilling a commitment to invest $600 billion in U.S. Manufacturing by 2029.
The company is also addressing reported issues with its App Store, Mac App Store, and iTunes Store, acknowledging that some users are experiencing difficulties accessing or downloading content. Apple stated it is working to resolve the issue.