Although Apple is still recognized as the most valuable brand in the world, its stock value grew less than its competitors in 2023.
By the end of 2023, while Apple saw a 54% increase in its stock value, the company’s financial performance compared to its competitors contains interesting points. In this article, we will take a look at the decline in Apple’s stock value compared to previous years and how it can have better financial performance in 2024.
The CNBC site has provided a summary of Apple’s performance and the company’s revenue in 2023. Although the iPhone maker’s 54% year-over-year gain is double that of the S&P 500, it’s not quite as high as other tech giants.
In 2023, compared to 2022, Nvidia shares have grown by 244%, Meta by 184%, Tesla by 130%, and Amazon by 78%. Even Microsoft’s stock was higher than Apple’s with a 56% increase compared to last year.
While the increase in Apple’s stock value was better than Wall Street’s expectations, it has faced a decline in revenue in the previous four quarters, which is the longest period of negative decline in the company’s stock value in more than two decades.
It should be noted that Apple has experienced an increase in profitability in some recent quarters despite the decrease in revenue; But declining sales of Apple’s tablets, iPhones, and Macs made investors more wary of buying shares of the Cupertino-based tech giant.
One of the reasons for the decline in Apple’s stock growth was the overall drop in smartphone sales in the world, which reached its lowest level in more than 10 years. Of course, there are other reasons for reducing the growth of this company’s stock value, including the slight upgrade of new iPhone models compared to previous models, the lack of new iPad models, and the repeated upgrade of Apple and Mac laptops.
Even with a slight decrease in Apple’s revenue, this company is still considered the most valuable brand in the world, and its market value is about 3 trillion dollars. The total revenue of this company in fiscal year 2023 was about 100 billion dollars.
The increase in sales of hardware products along with the growth of services could help Apple regain its normal growth rate.
While Apple’s virtual reality headset called Vision Pro will be launched in early 2024, it is not expected to bring much revenue to the company’s pocket. However, it is predicted that if buyers accept Vision Pro next year, this product can make changes in Apple’s financial future. It should be noted that the price of the Cupertino company’s virtual reality headset will be $3,500.
