Publication date: January 23, 2025

Apple Inc. known for the iPhone, iPad, and MacBook and innovative technology such as the Apple Watch and AirPods probably needs little introduction. Within the technology sector, Apple is the best-known brand name worldwide alongside Google and Microsoft.













When we talk about a top player, Apple certainly qualifies. Over the past decade, its share price has increased tenfold. Since the introduction of the iPhone in 2007, the current share price is even sixty times higher. Below you will find the price chart of the past ten years that shows at a glance the enormous advance of Apple.

For a month the star performer is somewhat out of shape and the shine seems off for now. In this article, we look at the current decline. Should we take the star player off the field and swap him for a new prodigy? Below is our analysis.

What is the current situation at Apple?

Apple's share price has been lagging far behind its peers for a month now, returning to the levels it was at before Donald Trump's election victory in early November.

Below is Apple's stock price chart over the past few months which clearly shows the drop of over 15%.

The reason for the decline are more than one. The company was criticized from the industry for its lack of innovation and for milking customers within a closed ecosystem. This would be unsustainable in the long run. Leading U.S. banks and asset managers lowered their advice for Apple because of falling iPhone sales figures and weak demand for the artificial intelligence (AI) features in newer models that could cause Apple to miss quarterly revenue expectations. Apple is expected to announce its figures on Thursday, Jan. 30.

In addition, Apple lost its coveted position as China's largest smartphone seller last year. Moreover, Apple relies heavily on China for production and there is uncertainty about the relationship between the U.S. and China now that Donald Trump is in power.

Finally, another important change in Apple's situation;
In 2024, influential investor Warren Buffett sold 75% of his stake in Apple. This sale seems prescient in retrospect. Although Apple rose in November 2024 following Donald Trump's election victory, fundamental growth rates remain weak. Buffett is known for his long-term vision and often sells when stocks are perfectly priced according to his analysis. With a high P/E ratio of 37, against a historical average of 15-20 in the 2010s, Apple does indeed appear overvalued.

Apple's high valuation indicates that investors are counting on decades of stable growth and profitability. However, according to insiders, Apple has not brought groundbreaking innovation since the iPhone, while companies like Meta may be forging plans to capture market share.