Apple’s stock (AAPL) faced a decline of approximately 1.9% on Tuesday after a report by analyst Ming-Chi Kuo predicted a potential 15% year-over-year decline in iPhone shipments in 2024. Kuo attributed the decline to reduced iPhone sales in China and increased competition from generative AI-powered and foldable smartphones. The report noted a 30%-40% year-over-year decline in Apple’s weekly shipments in China and suggested that the trend might persist.
The main factors cited for the decline were the resurgence of Huawei in the Chinese market and the growing preference for foldable phones among high-end users. This prediction aligns with concerns expressed by several financial institutions earlier in January, leading to downgrades of Apple’s stock by Barclays, Piper Sandler, and Redburn Atlantic. In contrast, Bank of America upgraded Apple’s stock, highlighting growth prospects related to its Vision Pro headset and generative AI technology.
The downward trend in Apple’s stock has also resulted in the company losing its status as the richest publicly traded company by market capitalization. Apple’s market cap now stands at $2.9 trillion, placing it behind Microsoft, which has a market cap of $3.05 trillion.
Apple is currently undergoing significant changes, including revisions to its App Store policies in Europe to comply with the European Union’s Digital Markets Act. The company has announced plans to open up European consumers’ devices to third-party app stores and allow game streaming services like Microsoft’s Xbox Cloud Gaming. However, critics, including Epic CEO Tim Sweeney and Spotify CEO Daniel Ek, argue that these changes do not fully address antitrust concerns.
Reports also suggest that the Department of Justice is considering the possibility of filing an antitrust lawsuit against Apple related to its App Store practices. Meanwhile, Apple is gearing up for the launch of its Vision Pro, an augmented reality/virtual reality headset described as a spatial computer, marking the company’s first new product category since the Apple Watch introduction nearly a decade ago. The Vision Pro is scheduled to go on sale on February 2.