Apple Faces AI Challenges and Global Competition

Apple's quarterly revenue growth is expected to be modest due to its slow AI integration and stiff competition from China. The company's market share has decreased, particularly in China. Despite facing a stronger dollar and competition, Apple's service sector shows promise with an anticipated sales increase.

Apple's anticipated quarterly revenue growth remains lackluster, as the tech giant grapples with sluggish adoption of artificial intelligence features and fierce competition from Chinese rivals, affecting iPhone sales during the critical holiday-shopping period.

The latest iPhone 16 lacked AI functionalities at its September launch, and some AI services, like the improved Siri, are delayed until later this year. This has weakened Apple's competitive stance, especially as competitors like Google and Samsung leverage AI to boost device sales.

Apple's global smartphone market share fell to 23% in late 2024, notably dropping in China to 17%. With a stronger U.S. dollar impacting international sales, Apple's projected revenue growth is 3.8%, down from 6.1% in the prior quarter.

(With inputs from agencies.)