- If Apple was hoping that 2024 would start smoothly, it was very much out of luck.
- The company has struggled in China, been slapped with a massive fine, and is facing a lawsuit.
- Most recently, the tech giant cut over 600 staff after abandoning two significant projects.
It’s not exactly been plain sailing for Apple in 2024 so far. In fact, its problems just keep piling up.
The Big Tech company has seen iPhone sales slump in key markets, abandoned a decadelong project, and is facing a massive antitrust lawsuit.
Now, Apple is reportedly cutting more than 600 staff after shelving two major projects. The company has largely avoided the bloodbath of mass layoffs sweeping the tech industry — but the recent cuts are Apple’s third this year.
Apple still has its fans and it’s coming out fighting as far as the antitrust suit is concerned.
Yet, as a result of its woes, the company is facing intense scrutiny from many quarters. Consumers may worry about how the iPhone could get worse, while Wall Street is also getting nervous, with Apple stock sliding around 12% this year.
As concerns about the company’s growth mount, here’s a rundown of Apple’s horrible year.
A headache in China
In the first week of January, Apple’s stock suffered two downgrades in a week from analysts at Piper Sandler and Barclays.
Both downgrades cited concerns about iPhone sales in China, one of Apple’s biggest markets.
Analysts at Barclays called iPhone 15 sales in China “lackluster,” while Piper Sandler analysts made reference to a “deteriorating macro environment” in the country.
Apple’s new iPhone 15 did not sell as well as its predecessor in China amid fierce local competition from Chinese rival Huawei.
Apple’s relationship with the Chinese government has also been under strain after officials began cracking down on the use of iPhones in the country.
Car troubles
In February, Apple finally abandoned its decadelong project to build an electric car.
Apple execs Jeff Williams and Kevin Lynch told about 2,000 employees working on the EV team the car was being scrapped in late February, Bloomberg reported, citing sources.
Some employees were moved to focus on the company’s generative AI efforts, but others would be laid off, Bloomberg reported at the time.
Regulatory scrutiny
In March, Apple was slapped with a fine of 1.8 billion euros, or about $1.95 billion, by the European Commission after being accused of abusing its market dominance.
The commission found that Apple restricted app developers from informing users about other, cheaper music services.
Apple said in a press release it would appeal the decision, hitting out at rival Spotify by claiming it was the “biggest beneficiary” of the decision.
A few weeks after the fine landed, the US Justice Department sued Apple, accusing the company of using illegal anticompetitive behaviors in the smartphone market to achieve the iPhone’s dominance. The suit argued that Apple’s tactics limited the success of other smartphone companies.
Representatives for Apple told Business Insider the company planned to “vigorously defend against” the suit.
Wall Street worries
Apple’s wild start to the year has understandably unnerved investors.
The company’s stock has slid around 12% this year, with analysts worried Apple is losing focus and falling behind its rivals in the AI race.
The tech company has moved slower on AI development than some of its key competitors, sparking concerns from some stakeholders. Apple CEO Tim Cook has been trying to reassure nervous shareholders that the company is committed to AI innovation.
Representatives for Apple did not immediately respond to a request for comment from BI, made outside normal working hours.
Layoffs
The loss of hundreds of workers in California, as reported by Bloomberg, will naturally spark more concern from industry observers.
While Apple hasn’t laid off anywhere near as many workers as its peers and appears to still maintain a healthy workforce, it could do without the scrutiny as it seeks to navigate what has so far been a very tough year.
