-logo-1200x675.png?v=20220915161652&w=240&h=240&zc=2){kind=logo}
People Don’t Realize How Badly Apple Has Done
Apple stock has badly lagged the market in the past year. It has suffered for three reasons, each of which might have been avoided. The post People Don’t Realize How Badly Apple Has Done appeared first on 24/7 Wall St..
Apple Inc. (NASDAQ: AAPL) stock is in trouble. Perhaps not in the traditional sense of the word. However, it has badly lagged the market in the past year. Over most periods in the past decade, the stock was so hot, that problem seemed impossible.
24/7 Wall St. Key Points:
-
Apple Inc. (NASDAQ: AAPL) stock has badly lagged the market in the past year.
-
It has suffered for three reasons, each of which might have been avoided.
-
Take this quiz to see if you’re on track to retire. (sponsored)
The shares are up only 15% in the past year, while the S&P 500 is 34% higher.
Apple is still the world’s most valuable company at $3.6 billion. But Microsoft Corp. (NASDAQ: MSFT) has equaled or topped it in the past year. And Nvidia Inc. (NASDAQ: NVDA) was briefly more valuable.
What’s the Problem
Apple has suffered for three reasons, each of which it might have avoided. The first is that its artificial intelligence (AI) offering is considered one of the worst among big tech companies. “The company has been scrambling to catch up in generative artificial intelligence — the technology behind ChatGPT and other cutting-edge chatbots — but its rivals only seem to be getting further ahead,” Bloomberg recently reported.
Part of Apple’s AI problem is that so many of the top ChatGPT products can be downloaded from the App store to the iPhone. These include those from market leaders OpenAI and Elon Musk’s xAI. These make the iPhone a top-tier AI device, without the need for Apple Intelligence, its homegrown product.
Apple has not been successful with the iPhone 16 launch. Like many recent generations of the smartphone, its new features are not much different from the previous one. In the most recently reported quarter, iPhone revenue slipped to $69.2 billion. The iPhone used to be the company’s growth engine.
Finally, Apple has faltered in the world’s largest smartphone market. China’s smartphone count is about 1 billion, which is more than triple the count in the United States. Apple’s Greater China revenue dropped, in the most recent quarter, from $20.8 billion to $18.5 billion. Local competition from smartphone companies, including Vivo and Huawei, have taken market share. The company Apple has also been slow in introducing a high-end AI product in China.
Apple is no longer a growth stock, and its dividend yield is only 0.41%. So, from a shareholder perspective, what is it?
I’ve Owned Apple’s Stock for 9 Years, but These 3 Factors Have Me Considering Selling
The post People Don’t Realize How Badly Apple Has Done appeared first on 24/7 Wall St..
