Apple’s latest struggles stem from a lack of innovation in its products. The company’s recent releases have been criticized for being too similar to their predecessors, failing to excite consumers. Mark Gurman, in his Bloomberg newsletter Power On, notes that iPhone sales have dropped below their impressive 2023 levels. Apple Watch sales have also declined, with analysts predicting a 14% drop from 2024.
The tech giant has been playing it safe since the iPhone X launch in 2017. Instead of revamping their designs, they’ve made minor tweaks. The Vision Pro, their VR/AR headset, also failed to make a significant impact. As a result, Apple’s products no longer wow consumers. Features like Apple Intelligence, higher-capacity batteries, and upgraded camera specs are released later than competitors and don’t generate much buzz.
Competition Heats Up
Apple faces increasing pressure from rivals, especially in China. The foldable smartphone market has grown nearly three times faster than the overall smartphone market. Xiaomi and Honor are capitalizing on this trend, producing more robust foldable devices with brighter screens that are now available in Europe and Southeast Asia. This surge in competition gives consumers more exciting options and is further fueled by US tariffs, making non-Apple products more appealing.
The rise of AI is another factor contributing to Apple’s woes. Google search volume on Apple devices has dropped for the first time in 22 years, as users turn to AI-powered chatbots like ChatGPT and Perplexity. This shift highlights how quickly market dynamics can change. Eddy Cue, Apple’s head of services, has warned that “in 10 years, you might not need an iPhone at all.”
Road Ahead
Apple hasn’t disclosed much about its foldable smartphone plans. Siri still needs significant updates to support large language models. The company’s next big product launch is expected in two to three years. Meanwhile, Apple risks losing its innovative edge, which has been a hallmark since 2007.