Apple Faces Difficulties Amid Consumer Apathy

Apple's stocks and revenue have experienced a downturn in recent times, primarily attributed to waning consumer interest in new products. Additionally, the company faces additional challenges as it grapples with an intellectual property lawsuit, potentially impacting its financial performance and market standing. 

In a recent communication to clients, Barclays analyst Tim Long expressed concerns over the current sales performance of the iPhone 15, particularly in China, according to CNBC. Long predicts that this lackluster trend in sales may extend to the upcoming iPhone 16 and impact Apple's overall hardware sales.

Furthermore, Apple ceased the sale of its Series 9 and Ultra 2 watches both in stores and online as a response to an International Trade Commission order in October. The order was based on the commission's finding that the blood oxygen sensor in these devices violated intellectual property belonging to Masimo, a medical technology company serving hospitals. 

Masimo alleges that Apple not only infringed on its intellectual property but also poached its employees and incorporated pulse oximetry technology into the widely popular Apple Watch. The lawsuit has yet to be resolved. 

In the fiscal year 2023, which concluded in September, Apple experienced a 3.4% decline in iPad revenue, amounting to $28.3 billion. According to estimates from Bank of America analyst Wamsi Mohan, unit sales of iPads fared even worse, plummeting by 15%. Notably, Apple does not disclose specific unit sales figures.

Despite these challenges, Apple's shares managed to increase by 49% by the close of Thursday, outperforming the Nasdaq's 44% gain for the year. However, when compared to other leading tech companies, investors saw more substantial gains elsewhere. Nvidia's shares tripled, Meta climbed nearly 200%, Tesla's stock more than doubled, Amazon rose 83%, Alphabet jumped 59%, and Microsoft gained 57%.

"The environment is challenging," said Daniel Flax, senior research analyst at Neuberger Berman, reports El Financiero mid-2023. "Consumers are facing pressure from general interest rates, higher inflation. There are a lot of cross-currents that Apple, like many other companies, can't overcome."

Apple’s market share in Mexico’s smartphone sector last year amounted to 22.6%, coming in second to Samsung with 23%.