Apple’s Retreating from China

Apple’s Retreating from China 

The Cupertino giant [AAPL] is to shutter its store in Dalian, China on August 9 — the first retail exit in the country — as it grapples with declining sales in the region. Meanwhile, India has overtaken China as the top exporter of smartphones to the US, accounting for 44% of shipments last quarter, Bloomberg reported; this reflects Apple’s rapid shifting of its manufacturing base. China’s share plunged to 25%. (Image shows an Apple Store on Nanjing Road, Shanghai.)

Huge Tesla Deal for Chipmaker

Samsung Electronics [SSNLF] has secured a landmark $16.5bn, eight-year deal to produce Tesla’s [TSLA] next-gen AI6 chips. This will be its largest-ever chipmaking contract, the Financial Times reported. The custom chips will power Tesla’s autonomous driving systems and humanoid robots, with potential future use in artificial intelligence (AI) data centers. The deal marks a major win for Samsung’s $40bn Texas investment backed by US Chips Act subsidies. 

Nvidia Expands TSMC Contract

Elsewhere in the chip space, Reuters reported that Nvidia [NVDA] has ordered 300,000 additional H20 AI chips from Taiwan Semiconductor Manufacturing Co [TSM] to meet surging demand from China, boosting its total inventory to nearly one million units. The move follows a partial rollback of US export restrictions earlier this month, allowing H20 sales to China. However, Nvidia still awaits final license approvals from the US Department of Commerce.

Big Tech Earnings: AI and Tariffs in Focus

This week will see a total of four earnings reports from members of the ‘magnificent seven’: Microsoft [MSFT], Meta Platforms [META], Apple and Amazon [AMZN]. The market will closely monitor the impact of trade tariffs announced in April. Margins will be key, as investors look for signs that tariffs may be starting to erode profits. OPTO details some other things compare across the four reports. 

AstraZeneca Flies High on Record US Sales

The UK’s biggest drugmaker [AZN] posted an 11% revenue jump to $14.5bn in Q2 2025, fueled by strong US and oncology sales. The earnings come after the company announced a $50bn investment in the US through 2030, intended to mitigate the impact of potential tariffs proposed by the Trump administration. The US currently accounts for 44% of AstraZeneca’s revenues. CEO Pascal Soriot reiterated a target of $80bn in annual sales by decade’s end.

Buffett’s Fund Trims VeriSign Stake

Berkshire Hathaway [BRK-B] is selling roughly one-third of its VeriSign [VRSN] holdings — some 4.3 million shares — priced at a nearly 7% discount, with the remainder subject to a one-year lockup. VeriSign rose to an all-time high during Monday’s trading session, before falling over 7% in after-hours trading. Berkshire has held VeriSign stock since 2012; JPMorgan is working on the share sale, Bloomberg reported.

Biotech Earnings: A Sector in Transition

The upcoming biotech earnings season will reveal how key industry players are navigating post-Covid-19 demand shifts, R&D expenses and new product rollouts. OPTO highlights key themes to watch for in earnings reports from Regeneron [REGN], Moderna [MRNA], BioNTech [BNTX], Vertex Pharmaceuticals [VRTX] and Amgen [AMGN].