Why Apple is 2025’s worst-performing Big Tech stock
On June 9, Apple Inc.’s worldwide Developers Conference (WWDC), General Manager Tim Cook and the best rice, a new ‘liquid glass’ design and the development of Apple Intelligence introduced a series of updates. However, analysts, developers and investors were inadequate. Announcements felt increased, most of the features already exist in opponent products.
Some hoped that Apple would use the event to make a dramatic AI return. This did not happen. After Nasdaq, the shares in Nasdaq fell by about 1.5%.
Apple’s problems did not start with WWDC. The event emphasized its deeper struggle only to keep up with the competitors. The stock price has fallen about 20% this year, the most steep decline among five major technology companies, including Meta, Microsoft, Amazon and Google.
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This decrease reflects a mixture of investor concerns: sluggish iPhone sales; One of the biggest markets in China, the diminishing market share; Increased regulatory examination of high margin service works; AI ambitions; and US President Donald Trump’s criticism of global outsizing due to tariff threats.
In the last six years, approximately 52% of Apple’s income came from the iPhone. But the device is in a rout. Growth has been flat for two years, lowered the overall income. In December 2024, iPhone sales fell by 0.8% annually. It increased only 1.9%in March quarter. Previous growth on iPhones was directed by customers who raised their phones. They are less eager to do this now.
Chinese struggle
China has long been very important for Apple as a large consumer market and a production base. Today it poses a twin threat.
Apple’s deep integration with Chinese supply chains makes it difficult to change production without disturbing. This makes it vulnerable to the tariff of threats from the Trump administration. It carries some production to India, but the risks with the tariff continue.
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Apple is also facing the demand for slimming in China. The iPhone’s share in the Chinese smartphone market fell to 15% in the first quarter of 2025, against 21% in the 4th quarter of 2023. Chinese brands such as Huawei and Xiaomi have won a share, an expected trend. According to the Bloomberg Intelligence Research, only 21% of Chinese consumers would choose an iPhone for the next acquisition of 29%.
Apple’s position in the country is also complex with foreign technology ban in some of the Chinese government’s workplaces and larger geopolitical tensions.
Services face with head winds
Apple’s sluggish iPhone sales have recently been balanced by the service business. The revenues of the department rose from $ 46 billion to $ 96 billion in 2019 to $ 96 billion and the income share rose from 17% to 24%. The profit margins of the service section are twice the hardware business.
However, applications that direct the service business are globally under regulatory pressure. Apple’s fees from application developers and payments from Google are faced with legal challenges (estimated as $ 20 billion per year).
In the US, the Ministry of Justice and an antitröst case from 16 states claimed that Apple forced competition in cloud games, messaging and digital wallets. The Digital Markets Law in Europe has allowed third -party application downloads and alternative payment systems. After a 30%reaction to the application store commissions, Apple cut off the commissions in some categories, but also introduced new wages and anger developers.
Ai Laggard
Initiatives such as AI, Openai and anthropics rising billions of rising are dominant. Even traditional competitors, such as Microsoft, Samsung and other technology companies, integrated AI features into their products, but Apple’s progress remains slow. The company has lost its position to Microsoft as the most valuable company in the world because of concerns about AI strategy.
With Apple’s AI ambitions, the disappointment of the user and investor goes beyond WWDC.
The upgraded Siri assistant faced delays due to errors and performance problems. Apple Intelligence properties are limited only to newer devices. The company rely on external partners such as Openai instead of developing integrated AI solutions. AI depends on other difficulties of Apple. The iPhone sales have become partially stagnated because Apple could not create compelling AI features.
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In China, Apple lacks the Chinese version of Apple Intelligence. Regulatory issues delayed the launch of AI feature in Europe. Building to be a calculation time.
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