Stock underperformance: Apple experiences longest revenue slide in 22 years – CNBC

Apple CEO Tim Cook unveiled the highly anticipated Apple Vision Pro headset during the annual Apple Worldwide Developers Conference held in Cupertino, California, on June 5, 2023. The new headset, which combines augmented reality and virtual reality technologies, is expected to revolutionize the way people interact with digital content.

However, despite the excitement surrounding the Vision Pro, Apple faced challenges throughout 2023. The company experienced four consecutive quarters of declining revenue, overshadowed by the stellar performances of other tech giants. The tough economic environment for phones and computers also played a part, with total smartphone sales hitting their slowest point in over a decade.

One contributing factor to Apple’s struggles was the absence of new iPad models in 2023. This lack of novelty affected sales and promotion of the product, resulting in weak demand. Evidence of this was seen as all current iPad models were readily available for shipment within a day from Apple’s website. In fact, in fiscal 2023, iPad revenue dropped 3.4% and unit sales fell 15%.

Apple further faced an intellectual property dispute that caused the temporary removal of new Apple Watch models from stores. This setback resulted in an estimated loss of $135 million in sales per day. Even the sales of Apple’s Mac computers declined, with a 27% decrease in revenue and an 11% decline in unit sales.

Despite these challenges, Apple’s stock managed to rise by an impressive 49% in 2023, outperforming the Nasdaq index. However, other tech companies such as Nvidia, Meta, Tesla, Amazon, Alphabet, and Microsoft experienced even higher stock gains.

Looking ahead, Apple aims to support its $3 trillion market cap and achieve revenue growth through the success of new products and a global recovery in smartphone and laptop demand. The upcoming release of Apple’s first mixed-reality headset, the $3,499 Vision Pro, in early 2024, will undoubtedly be a significant test for the company. Apple enthusiasts and investors alike eagerly await the reception and impact of this groundbreaking product in the tech industry.