Even though Apple has already silenced critics and overcome existential crises, some fans of its minimalist products and investors in its maximalist stocks are nervous.
Apple is expected to report its second-quarter results Thursday after the bell. These numbers come at a time when the company continues to face growth challenges due in part to slowing sales in China and a customer base seemingly less interested in upgrading to its latest iPhone line.
Analysts expect weak sales figures for the quarter ending March 31, even though the company has beaten expectations in the past four quarters.
This will be its first earnings report since launching its biggest new product in years, its $3,499 Vision Pro mixed reality headset. Apple spent around $100 billion on research and development on this device, according to a study. recent analysis.
The headset launched just as the extended reality (XR) market – a category that includes augmented, virtual and mixed reality – was stalling with little mainstream adoption. The Vision Pro had limited applications from the start, but its experience is unmatched when it comes to watching immersive videos and interacting with the world around you, with Hollywood studios and game developers already signing on .
Still, it’s an expensive computer that you wear on your face.
Most recently, Apple analyst Ming-Chi Kuo issued an updated forecast for the headset, indicating that production would be reduced by several hundred thousand units.
While Apple is unlikely to reveal a specific number of headsets sold in the last quarter, it could give a general update on its performance.
Problems in China
In particular, the company has lost momentum in China, as nationalism, a tough economy and increased competition have hurt Apple in recent months. Market research firm IDC said Apple’s smartphone shipments fell 10% globally in the first quarter of this year.
Chinese manufacturers including Huawei and Xiaomi have also made notable gains as consumers who once would have considered Apple now turn to domestic brands in China.
“It’s a big drop for Apple, but if you think about where we are over the last four years, Apple has probably been the most resilient brand, overcoming supply chain issues and macroeconomic challenges, plus than other brands,” said Nabila Popal. research director at IDC, told CNN at the time.
Samsung was also the leading smartphone manufacturer for the past 12 years. Although Apple won the crown last year, its reign only lasted a quarter. Samsung has since regained its position, IDC reported.
The company’s stock price has fallen more than 8% in 2024 to less than $170 per share, after hitting nearly $200 per share at various points over the past year. The company has already overcome obstacles and threats several times to reach a market capitalization of $2.6 trillion, making it one of the largest and most powerful companies in the world.
All eyes on AI
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