Consumer Electronics

Why Apple Is No Longer A Great Stock

PhillDanze / iStock Editorial via Getty Images

Apple’s (NASDAQ: AAPL) run as America’s greatest stock and most valuable company by market cap is over. And that will not change. Despite several challenges, China is the primary reason for Apple’s downfall.

There have been worries for at least a year that the iPhone 15 might sell poorly compared to recent generations. It may not have enough upgrades from the iPhone 14. It could be too expensive. Perhaps competing models like the Galaxy Z Flip5 from archrival Samsung had attracted Apple customers.

The iPhone had a modest sales increase based on the company’s most recent earnings. Apple’s revenue rose only 2% overall to $119.6 billion. iPhone revenue worldwide grew faster, but not by much. The increase for the quarter was from $65.8 billion to $69.7 billion.

The earnings report also shows that Apple wheels fell off in China. Revenue for what Apple calls Greater China dropped from $23.9 billion in the year-ago quarter to $20.8 billion. China is the largest smartphone market in the world by far, with over 900 million users.

Apple competes with local manufacturers in China, which is not a challenge in any large country. China-based Huawei has about a third of the market, as does Apple. Xiaomi and Honor each have slightly less than 10%. Samsung has a presence in the market.

Apple’s stock has been downgraded recently because of worries about China. The competition is fierce, unlike in the US and much of Europe. Without healthy growth in China, Apple’s prospects are mediocre.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.