Why Apple is 2025's worst-performing Big Tech stock
On 9 June, at Apple Inc.'s Worldwide Developers Conference (WWDC), chief executive Tim Cook and his top brass unveiled a slew of updates, including a new 'liquid glass' design and enhancements to Apple Intelligence. But analysts, developers and investors were left underwhelmed. The announcements felt incremental, many of the features already exist in rival products.
Some had hoped Apple would use the event to mount a dramatic AI comeback. That didn't happen. Its shares slipped about 1.5% on the Nasdaq post-keynote.
Apple's troubles didn't begin with WWDC. The event merely spotlighted its deeper struggle to keep pace with competitors. Its share price has dropped nearly 20% so far this year, the steepest decline among the five big tech firms, including Meta, Microsoft, Amazon and Google.
Read this | Apple opens its trillion-dollar app empire to AI devs at WWDC 2025—India stands to gain big
That drop reflects a mix of investor concerns: sluggish iPhone sales; declining market share in China, one of its biggest markets; rising regulatory scrutiny of its high-margin services business; its faltering AI ambitions; and renewed criticism from US president Donald Trump over its global outsourcing amid tariff threats.
In the past six years, about 52% of Apple's revenue has come from the iPhone. But the device is in a rut. Growth has been flat for two years, dragging down overall revenue. In the December 2024 quarter, iPhone sales slipped 0.8% year-on-year. In the March quarter, they rose just 1.9%. Earlier growth in iPhones was driven by customers upgrading their phones. They are less willing to do that now.
The China challenge
China has long been crucial to Apple—as a major consumer market and a manufacturing base. Today, it poses a twin threat.
Apple's deep integration with Chinese supply chains makes it hard to relocate production without disruption. This makes it vulnerable to tariff threats from the Trump administration. It is moving some production to India, but tariff-related risks remain.
Read this | No change to Apple's India iPhone plan for now amid Trump's strictures
Apple is also facing weakening demand in China. The iPhone's share in the Chinese smartphone market fell to 15% in Q1 of 2025, against 21% in Q4 of 2023. Chinese brands such as Huawei and Xiaomi have gained share, a trend expected to continue. Only 21% of Chinese consumers would choose an iPhone for their next purchase, down from 29% a year ago, according to a Bloomberg Intelligence survey.
Apple's position in the country is also complicated by the Chinese government's ban on foreign technology in some workplaces and broader geopolitical tensions.
Services face headwinds
Apple's sluggish iPhone sales have recently been offset by its services business. The division's revenues jumped from $46 billion in 2019 to $96 billion in 2024, with its revenue share increasing from 17% to 24%. Profit margins of its services division are double those of its hardware business.
However, the practices that drive its services business are under regulatory pressure globally. The fees Apple collects from app developers, and the payments it gets from Google to be the default search engine on its devices (estimated at $20 billion a year), are facing legal challenges.
In the US, an antitrust lawsuit from the Department of Justice and 16 states has alleged that Apple stifles competition in cloud gaming, messaging and digital wallets. In Europe, the Digital Markets Act allowed third-party app downloads and alternative payment systems. Following backlash against its App Store commissions of 30%, Apple cut commissions in some categories, but also introduced new fees, angering developers.
AI laggard
AI is dominated by startups such as OpenAI and Anthropic, which have raised billions. Even traditional competitors like Microsoft, Samsung and other tech companies have integrated AI features into their products, but Apple's progress remains slow. The company lost its position as the world's most valuable company to Microsoft, partly due to concerns about its AI strategy.
User and investor disappointment with Apple's AI ambitions goes beyond WWDC.
The upgraded Siri assistant faced delays due to bugs and performance issues. Apple Intelligence features are limited to newer devices only. The company relies on external partners like OpenAI rather than developing integrated AI solutions internally. AI is connected to Apple's other challenges. iPhone sales have stagnated partly because Apple has failed to create compelling AI features.
Also read | India prepares reporting standard as AI failures may hold clues to managing risks
In China, Apple lacks a Chinese version of Apple Intelligence. Regulatory issues have delayed AI feature launches in Europe. It's building to be a time of reckoning.
www.howindialives.com is a database and search engine for public data
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
30 minutes ago
- Mint
The US Rethink on Australia Submarines Is China's Win
The White House's review of the Aukus pact — a security arrangement between the US, UK and Australia — is rattling one of Washington's closest alliances, and playing right into China's hands. It sends yet another signal that America First might just mean everyone else alone. First announced by former President Joe Biden in 2021, the multibillion-dollar deal commits Washington and London to help Canberra develop a fleet of nuclear-powered submarines over a 30-year period. It was designed to help counter Beijing's growing influence in the Indo-Pacific. Donald Trump's administration has just put those plans in limbo. The review will determine whether Aukus is 'aligned with the president's America First agenda,' the Defense Department said, adding that it's also aimed at making sure allies contribute more to collective security and that the US's defense industrial base can meet domestic needs. These are valid concerns. American submarine production has been plagued by persistent delays and ballooning costs. Elbridge Colby, a top policy adviser who is expected to play a central role in the study, has long warned that the US could end up short on submarines at a critical moment in its deterrence strategy against China. In particular, Colby is worried about a hypothetical conflict around Taiwan. This is yet another example of the White House's pay-to-play approach to global partnerships, and how allies left out in the cold will have to navigate the new environment. 'Regardless of how this review goes, Australia should be reducing its dependence on US weapons and technology,' Michael Shoebridge, founder and director of Strategic Analysis, a Canberra-based political consultancy, told me. 'We are probably slower than others in realizing that America remains our most powerful partner, but we have to do more for ourselves.' European nations have already had a taste of what it means to be a US ally in Trump's world. At the Munich Security Conference earlier this year, Vice President JD Vance chastised participants for not doing enough to bolster collective security. Defense Secretary Pete Hegseth delivered a similar message to Asian partners at the Shangri-La conference, a regional security summit in Singapore. Countries like Australia, Japan, and South Korea have long relied on America as a security guarantor, but now Washington wants them to carry more of the load and increase military budgets. Meeting with Australia's Defense Minister Richard Marles on the sidelines, Hegseth told him that Canberra needs to up its military spending target to 3.5% of GDP. Currently, Australia is on track for about 2.4% by the mid 2030s, and has already committed to additional investment. For Beijing, each move that reduces the Trump administration's influence in the region is welcomed as a sign of disengagement. When Aukus was first announced, China expressed outrage at what it viewed as evidence of Washington's attempts at containment. On Thursday, the foreign ministry repeated its resistance to the pact, adding that it opposes 'anything that amplifies the risk of nuclear proliferation and exacerbates arms race.' A retooling of the treaty will reinforce the narrative Beijing has been pushing that the US is an untrustworthy partner. In all likelihood, Aukus will survive, but perhaps not in its current form. Canberra may be forced to make compromises, and offer concessions to Washington, including raising its defense capabilities. But even if the public rhetoric is one of long-term cooperation, Australia should begin weighing its options carefully. It could work more closely with other partners. In May, Ursula von der Leyen, president of the European Commission, raised the prospect of a formal defense agreement between the trading bloc and Australia. While in reality this would be challenging given the number of countries involved, partnerships like this are worth exploring and should be pursued. The country has already begun strengthening defense ties with Japan through reciprocal access agreements, and worked with India under the Quad framework on maritime security and military exercises. These steps offer a foundation for a more multipolar security strategy, one that doesn't always lean so heavily on Washington's shifting priorities. Prime Minister Anthony Albanese is expected to meet Trump on Tuesday on the sidelines of the Group of Seven meeting in Canada, where they're likely to tackle trade and defense spending. This is a golden opportunity to impress upon the American president the benefits of committing to Aukus — chief among them, maintaining American influence in the Indo-Pacific. Whether the US leader reaffirms the pact or reshapes it, this review should serve as a wake-up call. For Australia, it's a reminder that even the closest alliances are only as stable as the political moment that defines them. More From Bloomberg Opinion: America will sell Australia between three and five Virginia-class, conventionally armed nuclear-powered submarines, with the first deliveries expected as soon as the early 2030s. In the longer term, Australia plans to build its own next-generation submarines in partnership with the UK, using American technology, to be completed in the 2040s. This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Karishma Vaswani is a Bloomberg Opinion columnist covering Asia politics with a special focus on China. Previously, she was the BBC's lead Asia presenter and worked for the BBC across Asia and South Asia for two decades. This article was generated from an automated news agency feed without modifications to text.
Time of India
31 minutes ago
- Time of India
When China jailed three people for leaking details of soon-to-be launched Apple gadget
Three Foxconn R&D employees in China were sentenced to prison for leaking details about the iPad 2 before its launch. The employees received sentences ranging from one year to 18 months and were fined between $4,500 and $23,000 for violating trade secrets. The arrests, which took place in December 2010, highlight Apple's aggressive stance on protecting its product secrecy. It also shows how importamt it is for the largest manufacturer of Apple's product to ensure this secrecy around the company's products. The three Foxconn employees reportedly provided digital images of the iPad 2's design to Shenzhen MacTop Electronics, an Apple-compatible accessory manufacturer founded in 2004. In exchange, MacTop paid the employees 20,000 yuan (approximately $3,000) and offered discounts on its products. This allowed MacTop to produce iPad 2 cases ahead of competitors, gaining a market edge. According to Cult of Mac, 'The leaked information gave MacTop a significant head start, showcasing how valuable Apple's trade secrets are in the competitive accessory market.' Apple's strict secrecy policy for its products Despite this high-profile case, leaks of Apple products persist, given the thousands of workers involved in its supply chain, many earning low wages. 'It's actually surprising that more Apple leaks don't surface, considering the scale of their manufacturing operations,' Cult of Mac noted. Apple's secrecy measures have since intensified, including deploying undercover security teams and imposing multimillion-dollar fines on suppliers who fail to safeguard confidential information. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Eat 1 Teaspoon Every Night, See What Happens A Week Later [Video] getfittoday Undo While Apple CEO Tim Cook has been slightly more forthcoming about future plans than Steve Jobs, the company remains fiercely protective of its hardware details. A leaked internal memo a few years ago underscored the severe consequences for employees who disclose sensitive information. With billions at stake in product launches, Apple's ongoing battle against leaks shows no signs of slowing down. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Pink Villa
an hour ago
- Pink Villa
41-year-old Facebook CEO Mark Zuckerberg's Net Worth: Is he among world's top 10 richest men?
As of 2025, Mark Zuckerberg, the CEO and co-founder of the revolutionary social networking platform Facebook, has secured the place of one of the wealthiest individuals in the world. Under his leadership, Meta has had an excellent year, and its share price has increased by 70%. Be it for his alleged MMA cage fight with Elon Musk or his various tech ventures, the business magnate is always making headlines. Mark so effortlessly dismisses his billionaire status and is often captured wearing a plain denim and grey t-shirt combo. Let's take a look at how he has embraced a humble way of life and makes the most of his day. A Sneak Peek into Mark Zuckerberg's Net Worth & Minimalistic Lifestyle A native of New York, Mark's journey to success wasn't a bed of roses. He attended Harvard University but had to leave during his sophomore year to focus on his startup project. He launched Facebook as a joint venture with his roommates in 2004. However, miscommunications happened, and he had to face countless hurdles to take his tech company to new heights. Mark met his wife, Priscilla, while attending university, and the couple tied the knot in 2012. Last year, his wealth jumped by USD 78 billion. According to Forbes, Mark Zuckerberg's current net worth is estimated at USD 235.7 billion. His daily routine is quite similar to that of any other 9-to-5 employee. He has incorporated the necessary lifestyle changes to power through a hectic day. After getting up at 8 in the morning, the first thing he does is check Facebook to get updates on world news. He gets 'punched in the stomach' with the inundation of texts from his connections. He then heads straight to the gym. Zuckerberg works out at least three times a week to 'reset' himself. In the past, he focused on running, but recently, he has shifted his focus to jiu-jitsu and mixed martial arts (MMA). Over the years, he has developed several hobbies, including surfing, raising cattle, learning Mandarin, and reading. The 40-year-old tech mogul is pretty transparent about his lifestyle choices. From eliminating time-consuming habits like planning his outfits every day to incorporating various forms of martial arts into his fitness regimen, he is setting an example as one of the most inspiring CEOs. Despite encountering a turbulent journey, one thing that has stayed consistent throughout the years is his humble nature and dedication toward leading a healthy and unostentatious lifestyle. And this has made him one of the top 10 richest men in the world. Disclaimer: All amounts mentioned in the article are sourced from Forbes. In some cases, celebrities or their teams give their inputs too, which we incorporate if provided by them. We take all efforts to share possible accurate numbers, however unless otherwise mentioned they are all approximates. We are open to feedback and suggestions on editorial@
