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Consumer electronics giant Apple Inc. announces its latest financial results post-market Thursday amid various headwinds, including missed growth expectations, increased competition and increasing perceptions that it is not as innovative as it once was.
APPL stock rose 3% on Monday amid investor hopes that the Cupertino, Calif.-based company would build on the same artificial intelligence momentum that has recently swept Microsoft and other tech firms upward. But AAPL is down nearly 12% for the year.
This poor performance has been a drag on many tech-focused exchange-traded funds this year. For example, the Vanguard Information Technology ETF (VGT) started the week up a modest 4.4% year-to-date, which lagged the 7.3% gain on the SPDR S&P ETF Trust (SPY).
Why Is AAPL Stock Down in 2024?
Apple, Inc. (AAPL) stock is down in 2024 for many reasons. Here's a breakdown of some potential factors that some analysts say are contributing to the stock price decline:
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Missed growth expectations: While Apple maintains a massive installed user base, its product sales, particularly iPhones, were down 19% in the first three months of 2024. This has led to investor disappointment and a decline in stock price.
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Competition: Renewed competition from Huawei, particularly in the Chinese market, is putting pressure on Apple's smartphone dominance. Huawei's resurgence with its advanced 5G technology disrupts Apple's market share, especially in a critical country like China.
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Innovation shortfall: Apple is battling a rising perception among investors that Apple hasn't delivered groundbreaking innovations recently. Compared to previous years with product launches like the Apple Watch or AirPods, there is a lack of excitement surrounding newer offerings, leading to a less bullish outlook.
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Tech sector slowdown: The technology sector hasn't performed as well as some other sectors in 2024. This broader slowdown might be affecting AAPL stock along with other tech giants.
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Valuation concerns: Apple's stock price might have reached a point where some investors believe it's overvalued compared to its current growth prospects. The AAPL price-earnings ratio is approximately 26, which is not extreme, but is slightly above the 20-25 average range for growth stocks.
Tech ETFs With Highest AAPL Stock Exposure
| Ticker | Fund | Expense Ratio | AUM | AAPL Allocation |
| 0.10% | $62.6B | 21.5% | ||
| 0.09% | $61.9B | 19.9% | ||
| 0.08% | $9.2B | 19.6% | ||
| 0.41% | $4.2B | 18.1% | ||
| 0.40% | $15.7B | 15.2% |
Data as of April 25, 2024. Leveraged ETFs were excluded from this list. See the full list of ETFs holding AAPL stock.