- If Apple was hoping for a smooth start to 2024, it was very unlucky.
- The company has struggled in China, where it has been hit with huge fines and faces lawsuits.
- Most recently, the tech giant cut more than 600 staff after abandoning two key projects.
It hasn't been smooth sailing for Apple in 2024 so far. In fact, the problems just keep piling up.
The tech giant is facing weak iPhone sales in key markets, abandoning a decade-long project and facing a major antitrust lawsuit.
Now, Apple will reportedly cut more than 600 jobs after shelving two major projects. The layoffs are Apple's third this year, although the company has largely avoided the disaster of mass layoffs sweeping the tech industry.
Apple still has its fans and continues to fight antitrust lawsuits.
However, as a result of its woes, the company has come under intense scrutiny from multiple directions. Consumers may be worried about how the iPhone will fare, but Wall Street is also nervous, with Apple shares down about 12% this year.
Amid growing concerns about the company's growth, here's a look at Apple's disastrous year.
chinese headache
In the first week of January, analysts at Piper Sandler and Barclays downgraded Apple stock for the second time in one week.
Both downgrades were based on concerns about iPhone sales in China. One of the biggest markets for Apple.
Barclays analyst talks about iPhone 15 sales in China While “lackluster,” Piper Sandler analysts cited a “deteriorating macro environment” in the country.
Apple's new iPhone 15 hasn't sold as well as its predecessor in China amid intensifying domestic competition from Chinese rival Huawei.
Relations between Apple and the Chinese government have also become strained as authorities begin to crack down on the company. Use of iPhone in Japan.
car trouble
In February, Apple finally abandoned its decade-long project to build an electric car.
Apple executives Jeff Williams and Kevin Lynch told the roughly 2,000 employees working on the EV team that the car would be scrapped in late February, Bloomberg reported, citing sources. He reportedly told them.
Some employees have been moved to focus on the company's generative AI efforts, while others will be laid off, Bloomberg reported at the time.
regulatory oversight
In March, Apple was fined 1.8 billion euros (about $1.95 billion) by the European Commission for abusing its market power.
The commission found that Apple restricted app developers from providing information to users about other cheaper music services.
Apple said in an article: press release The company plans to appeal the decision and attack rival Spotify, claiming it is the “biggest beneficiary” of the decision.
A few weeks after the fine was imposed, US Department of Justice sues Applethe company engaged in illegal anti-competitive conduct in the smartphone market, iPhone advantage. The lawsuit claimed Apple's tactics limited the success of other smartphone companies.
Apple representatives told Business Insider that the company intends to “vigorously defend” the lawsuit.
Wall Street Concerns
Investors are understandably spooked by Apple's rocky start to the year.
The company's stock price has fallen about 12% this year, according to analysts. They worried that Apple was losing focus and falling behind rivals in the AI race.
The technology company has been slower to develop AI than some of its major competitors, raising concerns from 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 BI's request for comment outside of normal business hours.
dismissal
California lost hundreds of workers; Bloomberg reported, Naturally, there will be further concerns from those in the industry.
Apple hasn't laid off as many employees as its peers and appears to still have a healthy workforce, but it's coming under scrutiny as it tries to weather what has been a very tough year so far. There is a possibility that you can get away with it.