Apple faces pressure as iPhone sales slide

Apple is set to report its quarterly earnings on Thursday as it battles sagging iPhone sales, a resurgent China rival, and investor pressure to innovate with AI-powered iPhones, as Reuters reported on Wednesday.

Analysts predict a 10.4 per cent decline in iPhone sales for the first quarter of 2024, the steepest drop in over three years. This weakness has contributed to a five per cent decline in overall revenue, Apple’s worst performance since late 2022.

Apple’s crown as the world’s most valuable company has slipped to Microsoft, and its market value has fallen significantly in 2024. This decline coincides with Huawei’s resurgence in China, where Apple is losing ground.

While competitors like Microsoft and Google aggressively promote their AI strategies, Apple remains relatively silent on its plans for this transformative technology.

Reports suggest Apple is in talks with OpenAI and Google to add generative AI features to iPhones, potentially unveiled at its upcoming developer conference. Analysts believe this integration could boost demand for the next iPhone series.

The company is expected to unveil a revamped iPad lineup later this month and update Mac models with faster, AI-focused processors. This focus on hardware upgrades could reignite consumer interest.

Despite the overall decline, Apple’s services business, including the App Store and subscription services, remains a bright spot, with projected revenue growth of 7.7per cent, as per the statement.