Apple Faces Multiple Challenges as Sales and Stock Decline

Recently, information has surfaced indicating that Apple is encountering difficulties on several fronts, particularly as its shares have dropped by 12.45% year-to-date.

The sales of the Apple Watch, iPhone, and Mac PCs are declining across various markets. The U.S. company is struggling to keep pace with competitors like Samsung and Google, which is set to release the new Google Pixel 9a.

Moreover, Apple’s slow advancement in areas related to Siri and artificial intelligence (AI) has come under fire, with senior director Robby Walker overseeing the division labeling the delays as an “ugly” situation.

To address the current challenges, the Apple Siri team recently held an all-hands meeting to discuss the company’s critical position in the race to develop AI-capable devices.

In China, a vital market for Apple, the company is trying to regain its footing where AI-powered smartphones have reshaped consumer expectations. Apple is now on the defensive, compelled to adapt to local market rules while striving to remain competitive.

2024 marked a notable decline in global smartwatch shipments, down by 7% compared to the previous year, marking the first downturn in the market since the original Apple Watch was launched in 2014. Apple faced a significant impact from this shift, with its Apple Watch sales plummeting by 19%.

The debut of the iPhone 16e, featuring the A18 chip and the company's first in-house mobile modem, has faced criticism from reviewers for being overpriced and lacking certain features compared to Apple’s premium models.

In China, Apple’s iPhone sales saw a sharp decline of 18.2% year-over-year in the final quarter of 2024, resulting in its fall to third place in the Chinese smartphone market, trailing behind Huawei and Xiaomi. In 2025, Apple's market share further declined by 17.2%, marking three consecutive years of revenue drops.

During the WWDC24 (Worldwide Developers Conference), Apple had announced plans to utilize both on-device and cloud AI, launching a hybrid model intended to balance privacy with advanced features. However, this plan now seems to have faltered.

While Apple refines its AI strategy, Chinese brands like Huawei Technologies, Oppo, and Xiaomi have surged ahead by integrating generative AI into their operating systems. This enables real-time personalization and deeper integration into their ecosystems. Samsung and Motorola, owned by Lenovo, are also delivering advanced AI devices.

In a recent Bloomberg interview, Robby Walker reflected on the need for Apple to focus on commitments across various projects, acknowledging that some features previously proposed will take longer than expected to deliver.

The meeting hinted at underlying tensions between Apple’s Siri division and its marketing team, as the communications department sought to promote features that were not yet ready for public release. Walker noted that earlier announcements and customer expectations heightened pressure on the team, leading to the removal of an iPhone 16 advertisement that highlighted these features. Disclaimers have since been added to the website, postponing the availability of these features.

Despite holding a significant cash reserve, Apple is contending with several substantial challenges. The company faces uncertainties related to tariffs and its presence in China, while its AI initiatives have consistently underperformed. Additionally, its lucrative collaboration with Google parent Alphabet is potentially at risk.

As investors have historically viewed Apple as a safe haven during market volatility, that perception is diminishing. The ongoing decline in various sectors within the company has raised concerns about its long-term growth potential.

Market experts note that while Apple remains a powerhouse, the current environment poses substantial risks with slow growth and absent catalysts, making it feel as though the company is merely treading water without recent innovations.

Apple, Sales, AI, Market, Challenges