Apple’s stock rallied in 2023, but its performance was outshined by all of its mega-cap tech peers, as the company suffered four straight quarters of declining revenue. It’s the longest such slide for Apple since the dot-com bust of 2001
Apple’s troubles in 2023 were due to less demand for its phones and computers, but the company also dealt with other company-issues. Apple didn’t release new iPad models in 2023, the first time that’s happened in a calendar year since the product was launched in 2010. Without new models, Apple has less to promote, and older versions of the product don’t see official price cuts that boost sales.
Moreover, Apple’s hardware quality has been called into question. In fiscal 2023, which ended in September, Apple’s iPad revenue dropped 3.4% to $28.3 billion. On a unit basis, iPad sales were even worse, falling 15%, according to a recent estimate from Bank of America analyst Wamsi Mohan. Apple doesn’t report unit sales. Even for Apple’s new products, like Mac computers, consumers showed less interest in opening their wallets for devices with minor upgrades. Sales of Mac PCs and laptops fell nearly 27% to $10.2 billion in fiscal 2023. Unit sales declined 11%.
Apple’s innovation has been stagnant. Earlier this month, all current model iPads were shipping from Apple’s website in a day, according to Morgan Stanley analysts. That’s a sign of weak demand because with the hottest products, Apple doesn’t have enough supply with current chip-shortages to ship that quickly.
Apple’s management and sales strategies have been called into question. To make matters worse, new Apple Watch models were removed from Apple stores in the U.S. days before Christmas over an intellectual property dispute. After a late December appeal, the devices have been returned to store shelves, but Morgan Stanley analysts estimate Apple lost about $135 million in sales per day during the brief ban.
Apple’s reputation has been tarnished by allegations of stolen technology. Apple has been accused of stealing technology from other companies and using it in their products.