Apple’s stock is experiencing its darkest period in over a year. Since its peak on December 26, 2024, the Cupertino-based company has seen nearly $700 billion wiped off its market capitalization. The primary concern? Investors are questioning its ability to continue innovating, particularly due to delays in its much-anticipated AI developments under Tim Cook.
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The Steepest Monthly Drop Since 2022
On December 26 last year, Apple reached a historic high with its AAPL stock hitting $259, pushing its market cap to $3.9 trillion. However, since then, the company has faced a dramatic downturn. In just three months, the stock price has fallen by 18%, with a staggering 11% loss occurring in the last week alone—marking its most significant weekly decline since November 2022.
Currently, the company’s market value stands at only $3.2 trillion. Although relative, the loss is substantial. For perspective, this decline surpasses the entire value of Walmart, which is valued at $689 billion.
Delayed Siri and Apple’s AI Struggles
At the heart of the concerns is artificial intelligence. While Microsoft, Google, and OpenAI are making continuous breakthroughs, Apple appears to be lagging behind. On March 7, the company announced a postponement in the release of an AI-enhanced Siri, originally scheduled for iOS 18.
This announcement led Morgan Stanley to lower its price target from $275 to $252, while also cutting its iPhone sales forecasts. According to Erik Woodring, an analyst at Morgan Stanley, the AI-powered Siri was the primary feature anticipated by prospective iPhone buyers.
This delay raises several concerns: the upcoming iOS 18.4 set for April is unlikely to feature a revamped Siri, iPhone upgrade rates may fall short of expectations in the fall, and Apple may miss the wave of mainstream AI, giving competitors a clear field.
Tim Cook Under Pressure, The Apple Intelligence Era at Risk?
Apple is betting big on Apple Intelligence, its in-house approach to AI, anticipated with the iPhone 17 and iOS 18. However, investors are beginning to question: Can Cupertino still lead the AI revolution, or is it merely keeping pace? Meanwhile, the market has made its judgment. And Apple has never lost so much money in such a short period, although it is not the only company affected by the current political crisis.