Tim Cook must always have headaches. Andrej Sokolow/picture alliance via Getty Images
If Apple had hoped that 2024 would start smoothly, the tech company was out of luck.
The company is having problems in China, has been heavily fined and is facing litigation.
Just recently, the tech giant laid off more than 600 employees after abandoning two key projects.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
The year 2024 hasn’t exactly been a walk in the park for Apple. Rather, the company’s problems are piling up.
The tech giant has suffered a slump in iPhone sales in key markets, abandoned a decade-long project and is facing a massive antitrust lawsuit.
Now Apple is reportedly laying off more than 600 employees after putting two major projects on hold. The company had largely avoided the carnage of mass layoffs in the tech industry — but the latest cuts are Apple’s third this year.
Apple still has its fans and is fighting when it comes to the antitrust lawsuit.
Nevertheless, the company is being closely scrutinized from many sides due to its problems. Consumers are worried that the iPhone could get even worse, and Wall Street is also getting nervous: Apple shares have fallen by around twelve percent this year.
As concerns about the company’s growth mount, here’s a look at Apple’s terrible year.
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Headache in China
In the first week of January, Apple shares were downgraded twice in a week by analysts at Piper Sandler and Barclays.
Both downgrades cited concerns about iPhone sales in China, one of Apple’s largest markets.
Analysts at Barclays called iPhone 15 sales in China “lacklustre,” while analysts at Piper Sandler pointed to a “deteriorating macroeconomic environment” in the country.
Apple’s new iPhone 15 did not sell as well in China as its predecessor model as Chinese rival Huawei waged fierce competition locally.
The relationship between Apple and the Chinese government is also strained after authorities began cracking down on the use of iPhones in the country.
Car problems
In February, Apple finally abandoned its decade-long project to build an electric car.
Apple executives Jeff Williams and Kevin Lynch shared with around 2,000 employees of the electric car team at the end of February that the car would be abandoned, reports “Bloomberg”, citing sources. Some employees would be reassigned to focus on the company’s generative AI efforts, but others would be laid off.
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New products being planned: According to media reports, Apple has secretly built a home robot – and is also working on another project
Regulatory control
In March, Apple was fined €1.8 billion by the European Commission after accusing the company of abusing its market dominance.
The commission found that Apple prevented app developers from informing users about other, cheaper music services.
Apple announced in a press release that it would appeal the decision and attacked rival Spotify, claiming it was the “biggest beneficiary” of the decision.
A few weeks after the fine was imposed, the US Department of Justice sued Apple, accusing the company of illegally engaging in anti-competitive behavior in the smartphone market in order to achieve iPhone dominance. The lawsuit argued that Apple’s tactics limited the success of other smartphone companies.
Apple representatives told Business Insider that the company will “vigorously” defend itself against the lawsuit.
Read too
Would you have preferred to buy Apple shares for that amount in 2007 instead of the first iPhone – how much money would you have today?
Wall Street is worried
Apple’s wild start to the year has understandably unsettled investors. The company’s shares have fallen by around twelve percent this year. Analysts fear that Apple is losing focus and falling behind its competitors in the AI race.
The tech company has been slower to develop AI than some of its key rivals, which has raised concerns among some stakeholders. Apple CEO Tim Cook has sought to reassure nervous shareholders that the company is committed to AI innovation.
Apple representatives did not immediately respond to a request for comment from Business Insider outside of normal working hours.
Read the original article in English here.