With an astounding $3 trillion valuation, Apple surpassed all other companies this year to become the most valuable company.
However, this accomplishment hides some of the difficulties the business encountered in 2023.
Apple Facing Worst Revenue Decline in 20 Years
Even if this accomplishment puts Apple ahead of the competition, the Cupertino behemoth also saw its biggest sales decline in 22 years, and rivals able to significantly outperform the manufacturer of iPhones.
Analyzing Cupertino’s stock performance, it found that the tech giant’s shares increased by 49%.
But compared to some of its rivals, this gain is insignificant, as CNBC observed.
Notably, the value of Nvidia’s shares more than tripled during the course of the year.
Meta had a notable increase as well; its shares nearly doubled, indicating a nearly 200% increase.
Similarly, Amazon’s stock increased by 83%, while Alphabet and Microsoft had increases of 59% and 57%, respectively.
Stock Market Challenges
Cupertino posted impressive financial achievements for the fiscal year 2023 despite fierce competition in the stock market.
Together with an impressive $97 billion in profit, the corporation posted an astounding $383 billion in revenue.
Based on recent data, it appears that Cupertino is facing difficulties due to a slowing global economy, as demonstrated by a progressive drop in sales of its hardware goods.
For example, Apple’s iPad business generated $28.3 billion in revenue in 2023, 3.4 percent less than the year before.
Mac Worst Sales
Moreover, the Mac lineup hasn’t taken off with customers as anticipated, even after Apple introduced its M-series chipsets, which are well-known for their improved performance and longer battery life.
The Mac division saw a significant 27% decline in revenue as a result of this lack of interest, with revenue reaching just $10.2 billion in fiscal 2023.
With the release of the iPhone 15 series, Apple anticipated to rebound, nevertheless.
Notable improvements over the previous model made by the iPhone 15 Pro and Pro Max.
Three iPhone models ended up being in the top 5 best-selling phones, even in China, where Huawei and Xiaomi are quite popular and pose a challenge to Apple and its iPhones.
Future Evaluation
Analysts estimate that Apple’s Services segment alone might worth trillions of dollars and will eventually raise the company’s valuation to $4 trillion.
The division is performing exceptionally well. This may easily counterbalance the underperforming segments of Apple.
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