Your pension is likely invested in some of the largest companies in the world - including Apple, a key player in the global technology market. Current geopolitical events are influencing Apple’s performance, which in turn affects your pension. Let’s take a look at why this is.
How does Apple’s performance affect my pension?
Shares represent a unit of ownership in a company. When you buy shares, you become a part owner of that company, and your ownership is proportional to the number of shares you hold.
The value of a share is worked out by taking the company’s value and dividing it by the number of shares in issue. This then forms the individual share price. It’s this share price that goes up and down in value over time. The price can move according to current market conditions, historic performance and potential growth opportunities.
If you were to look at your own pension closely, you’ll see that you probably own a small percentage of many of the world’s largest and most successful companies. The top holdings in your pension refer to the companies you have the largest investment in. For most pension savers, Apple will likely be one of the top 10 holdings in your pension fund.
What is Apple?
Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne in California. With a vision to make computers accessible to everyone, they began with the ‘Apple I’ - a personal computer kit designed and built by Wozniak in his garage.
Today, Apple is the largest company in the world with a market capitalisation (total value) of over $3 trillion. ‘Market capitalisation’ is calculated using the present share price multiplied by the total number of shares.
Apple is also one of the seven leading technology companies in the US (also known as the ‘Magnificent Seven‘) recognised for its innovation and strong performance.
How much of a typical UK pension is invested in Apple?
Pensions typically put a large portion of your funds into company shares (equities) through the stock market. This strategy aims to grow your wealth over the long term, as company shares are typically one of the best performing asset types.
As Apple is currently the largest company in the world, it’s a common holding in many investments.
While the exact percentage of Apple in a typical UK pension fund varies, Apple makes up around 5% of the MSCI World Index, a widely followed global stock market index which tracks the performance of many established companies across 23 developed countries worldwide.
As such Apple can represent a small percentage of the typical UK pension plan. Current geopolitical events are influencing Apple’s share price performance, which in turn could affect your pension balance.
How is Apple affected by President Trump’s tariffs in 2025?
The return of US President Donald Trump has brought renewed attention on tariffs - which are taxes on imported goods. His administration has escalated the trade war with China, announcing a steep 145% tariff on Chinese-made products.
These tariffs impacted Apple’s supply chain as it relies heavily on Chinese factories for manufacturing iPhones and other products. In the table below you can see how short-term uncertainty from US tariffs have shaken the value of Apple shares. However, the long-term trajectory shows strong growth.
| Company | 3-month performance | 1-year performance | 5-year performance |
|---|---|---|---|
| Apple | -11% | +30% | +249% |
Source: Market Watch. Data as of 31 March 2025.
Apple was particularly vulnerable in this situation, as approximately 80% of iPhones for US consumers are manufactured in China. Fortunately, the Trump Administration later exempted smartphones, computers, and certain other electronic devices from ‘reciprocal tariffs’ - although these exemptions could be temporary.
These tariffs are part of Trump’s wider strategy designed to reduce the trade deficit and boost domestic manufacturing. However, Apple has indicated they intend to diversify its manufacturing to India - and not the US for the time being, although this too could change.
What could make the Apple share price go up and positively impact your pension balance?
Over the next three months, the share price could rise if:
- Apple exceeds expectations in its next quarterly earnings report (this looks at the profits and losses for the prior three months). This could lead to a short-term spike in the share price;
- Apple announces a new product launch or cost-saving update that could excite investors; and/or
- the Federal Reserve, the Central Bank in the US, decreases interest rates. This could boost consumer spending power and encourage businesses to borrow at a lower interest rate and allow them to consume more goods.
Over the next year, the share price could rise if:
- Apple sees continued growth in high-margin, low device services like Apple Music, iCloud, and the App Store, therefore boosting profitability;
- Apple successfully expands in emerging markets like India; and/or
- the launch of subscription bundles or new devices enhances the Apple ecosystem.
Over the next five years, the share price could rise if:
- Apple makes breakthrough innovations in new industries. This could include autonomous vehicles or augmented reality;
- the company achieves sustained success in underdeveloped markets with affordable devices and services; and/or
- strong cash flow means Apple can buy back its own shares and pay dividends, which could help its stock price go up over time.
What could make the Apple share price go down and negatively impact your pension balance?
Over the next three months, the share price could fall if:
- Apple misses revenue or profit targets in its quarterly earnings report. This could lead to a ‘short-term sell-off’, as investors react quickly by selling its shares, leading to a short-term decline in the share price;
- supply chain disruptions occur, such as delays in manufacturing or shipping due to geopolitical tensions and tariffs; and/or
- rising interest rates or fears of a global economic slowdown negatively impact tech stocks.
Over the next year, the share price could fall if:
- Apple loses market share to increased competition from Android manufacturers, particularly in emerging markets;
- increased or new regulations could target Apple’s business practices; and/or
- an economic downturn weakens consumer demand, meaning less is spent on premium products.
Over the next five years, the share price could fall if:
- Apple fails to deliver new successful products, risking its reputation as an industry leader;
- tensions between the US and China disrupt Apple’s supply chain or limit access to significant markets; and/or
- there’s increased competition in the technology sector. For example, a competitor introducing a new product or platform that reduces demand for Apple’s offerings.
Conclusion
- Your pension likely has a small investment in Apple - most pensions invest a portion of your retirement money in Apple because it’s one of the largest and most successful companies in the world.
- When you invest, you own a portion of the company - the value of these company shares will fluctuate based on market conditions, affecting the value of your pension on a given day.
- Current events can impact your investments - geopolitical events, such as tariffs imposed by the Trump Administration, can affect Apple’s costs and share price. This in turn impacts your pension balance.
- Politics is short-term and investing is long-term - while current events can cause short-term volatility in share prices, successful investing typically focuses on long-term growth.
Staying informed about current events, and their impact on your pension, can help you invest with confidence - even in a changing market.
Have a question? Get in touch!
Do you want to know more about your pension plan with PensionBee? You can check out our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via engagement@pensionbee.com.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
