Apple shares have underperformed other major technology companies in recent months, falling more than 10% year-to-date due to investor concerns about the slow adoption of artificial intelligence in the iPhone and the resurgence of Huawei in China. This is reported by Reuters.
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According to LSEG, analysts on average expect a drop in iPhone sales, accounting for about half of Apple’s revenue, by 10.4% for the first three months of 2024. This drop will be the largest in the last three years.
Analysts estimate that Apple's overall revenue fell 5% in the second quarter, which included January-March. This would be Apple's biggest revenue decline since the December 2022 quarter, when revenue fell 5.5%.
Earlier this year, Apple lost its title as the world's most valuable company to Microsoft. The Apple company's market value is $2.68 trillion after its share price fell in 2024.
Weak earnings and falling shares are forcing Apple to improve its flagship device, since the iPhone has not had major updates for many years.
The company is in talks with OpenAI and Google to add artificial intelligence features to the iPhone, which could be unveiled at the company's largest annual developer conference in June.
Analysts believe that AI integration could boost demand for the next iPhone series. which are traditionally expected in the fall.
Adding artificial intelligence features to the iPhone could also help Apple better compete with Huawei and Samsung, which earlier this year regained the title of the world's top smartphone vendor thanks to demand for AI features in its Galaxy smartphones S24.
Recall
The “Ministry of Finance” wrote that Huawei’s profit has grown more than 5 times. The company is ahead of Apple in China.
According to research company Counterpoint, Huawei smartphone shipments grew by 70% in the first quarter after the company unexpectedly returned to the market last year with a new flagship running on cutting-edge 7- Chinese-made nanometer chip.
Counterpoint estimates that Apple's iPhone sales in China fell 19% during the first quarter.
