Despite worsening Sino-American relations, Apple ranked as the second best-selling smartphone brand in China last year. However, it has now slipped to fourth place following a 24% decline in iPhone sales during the first eight weeks of 2024.
Apple's stock has seen a downturn this year, prompting discussions on Wall Street about the reasons behind it. On Tuesday, the stock dropped 2.8% to $170.23, following a 2.5% decrease on Monday. Year-to-date, Apple shares are down by 8%, while the S&P 500 has risen by 7%.
Much like in other countries, China's smartphone market is facing challenges. The mobile market in China contracted by 7% in the initial weeks of the year, with only Huawei and Honor experiencing year-over-year sales growth among the top manufacturers.
Currently, Apple trails behind local giants Vivo, Huawei, and Honor, occupying the fourth position. Huawei notably enjoyed significant growth over the past year, increasing its market share from 9% to 17% due to a 64% sales surge.
As the world's second-largest economy and a crucial market for tech companies, China holds substantial importance for Apple. However, the company is steadily losing market share in China, where it generates approximately 20% of its revenue.
And it seems that Apple's dominance as the world's second-largest company may soon be challenged. Nvidia is rapidly closing in, with only about $50 billion left to surpass Apple's market capitalization. Microsoft achieved this feat in January when it surpassed Apple to claim the top spot.
However, Apple isn't the sole member of the "magnificent seven" that is experiencing a decline this year. Besides Apple, Alphabet has experienced a 4% decline year-to-date, and Tesla has notably underperformed with an almost 28% decrease. In contrast, Nvidia stock has seen an increase of 78%, Meta has risen by 41%, and both Amazon and Microsoft have outpaced the broader market with gains of 16% and 9% respectively.
Tesla's substantial decline and its negative profit trend have actually led to doubts about its inclusion among the "magnificent seven." Berkshire Hathaway and Eli Lilly have recently surpassed Tesla in market value, claiming the seventh and eighth positions among the largest American companies. So, on the other hand, the situation might not be entirely unfavorable for Apple.
