Tech Giant Stumbles: Apple’s Stock Plummets Amid Sluggish iPhone Sales
The tech world was abuzz on Thursday as Apple’s stock took a nosedive, plummeting 4% to its lowest point since August 5. This drastic decline comes on the heels of reports suggesting lackluster iPhone sales in China, a crucial market for the company.
A Shift in the Smartphone Landscape
According to a report by Canalys, a leading market research firm, Apple has slipped to third place in China’s smartphone market, trailing behind local powerhouses Vivo and Huawei. The data reveals that Apple shipped a mere 15% of the 284 million phones sold in China last year, a staggering 17% decline from the previous year. Meanwhile, Vivo and Huawei are experiencing a surge in growth.
Supply Chain Woes
TSMC, a key Apple supplier, has also sounded the alarm with a forecasted 6% sequential drop in smartphone sales for the first quarter. While the company attributes this decline to seasonal fluctuations, it’s clear that Apple’s chip supplier is diversifying its revenue streams. AI chips now comprise over half of TSMC’s revenue, surpassing smartphones as its largest business segment.
Gloomy Forecast for iPhone Shipments
Noted Apple supply chain analyst Ming-Chi Kuo predicts a 6% annual decline in iPhone shipments for the first half of 2025, with the majority of the decline occurring in the second quarter. Kuo believes that Apple’s AI system, which is not yet available in China, is failing to boost iPhone demand. “There is no evidence of Apple Intelligence’s ability to benefit hardware replacement cycles or service business,” Kuo wrote.
Earnings Report Looms
As Apple prepares to release its December quarter results on January 30, investors are bracing themselves for what could be a tumultuous earnings report. With the company’s stock already down nearly 12% from its peak in December, all eyes will be on Apple’s performance in the coming weeks.
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