Apple Inc. (NASDAQ: AAPL) stock has had an uncharacteristically bad year. Though the once-hot shares are up 24%, the Nasdaq is 40% higher. According to many experts, the two reasons for the trouble are the lukewarm reception of the iPhone 15 and China sales. iPhone sales need to rise briskly in 2024 to get the stock back in gear.
According to tech research firm IDC, iPhone sales in 2023 were 234.6 million. That was up by 3.7% from 2022. To impress Wall Street, iPhone sales need to be higher this year, and higher by an impressive amount. Apple needs to sell 250 million iPhones in 2024.
Apple’s most recently reported quarter shows the extent of the problem. Total revenue rose only 2% to $199.6 billion. While this makes Apple one of the largest companies in America, its revenue increase has been in the double digits for years.
China presented a major problem. Greater China sales dropped from $23.5 billion to $20.8 billion in the most recent quarter. Apple faces a large number of local competitors, including Vivo, Oppo, and Huawei. Each has a double-digit market share.
iPhone sales were also lackluster in the most recent quarter. Revenue rose from $65.8 million to $69.7 million. iPhone revenue is nearly 60% of Apple’s sales.
Apple rolls out a new iPhone every September. Recently, skeptics have said that each new iPhone is no longer much different from the model it replaces. Many people cannot tell the difference in camera quality or the processor’s speed. Apple may be living off loyalty to its brand, but it most likely cannot continue indefinitely. (Check out five reasons to avoid Apple products today.)
What does the next generation of iPhone need to have so Apple can sell 250 million iPhones this year? Almost certainly, it will need to be partially AI-powered. Most technology will have artificial intelligence software components soon. And the camera and processor will need to be much better.
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