The Apple Problem

For decades, Apple has been the gold standard in the tech industry, known for its innovation, premium design, and ecosystem lock-in. However, recent trends suggest cracks in the empire. With slowing sales, lackluster innovation, and increasing competition, Apple is starting to show signs of trouble.

The Numbers Don’t Lie

Apple’s revenue has seen major swings in the last decade, reflecting both its dominance and its vulnerabilities:

Fiscal Year	Annual Revenue (in billions USD)	Year-over-Year Change
2015	$233.72	+27.86%
2016	$215.64	-7.73%
2017	$229.23	+6.30%
2018	$265.60	+15.86%
2019	$260.17	-2.04%
2020	$274.52	+5.51%
2021	$365.82	+33.26%
2022	$394.33	+7.79%
2023	$383.29	-2.80%
2024	$391.04	+2.02%

Why Did Apple Boom in 2021?

Apple saw record-breaking 33.26% revenue growth in 2021 due to:

• The iPhone 12 supercycle – first 5G-enabled iPhone.
• Pandemic-driven demand for MacBooks and iPads.
• Massive services growth (App Store, iCloud, etc.).
• Apple Silicon (M1 Chip) boosting Mac sales.
• Strong growth in China and emerging markets.

Why Did Apple Decline in 2023?

However, by 2023, revenue dropped 2.80%, showing signs of stagnation. The key reasons were:

• Weak iPhone demand due to longer upgrade cycles.
• Mac & iPad sales plummeted after the pandemic-driven boom.
• Post-pandemic consumer slowdown with inflation hitting tech spending.
• Strong U.S. dollar making Apple products expensive globally.
• Regulatory pressure & lack of major product innovation.

Buffett’s Warning: Selling Apple Stock

Even Warren Buffett, one of Apple’s biggest believers, has started reducing his position in Apple. In 2024, Berkshire Hathaway sold over 600 million Apple shares, reducing its stake significantly. This is a major signal that even long-term investors are questioning Apple’s future growth and stability.

Buffett has always been known for his patience and strategic investments, so his decision to trim Apple holdings should not be ignored. It raises the question: Is Apple still the safe, high-growth stock it once was?

The Tim Cook Problem

In one of his interviews, Tim Cook once said Apple could be late to the market and still be okay because they are “that good.” While this worked for the Apple Watch (which became the top-selling smartwatch despite launching years after its competitors), it’s a dangerous mindset for a tech company.

Apple has stalled on innovation. Just look at their product lineup:

• Mac Pro had no real update for years.
• iPad line has become confusing with little actual advancement.
• iPhone “upgrades” feel incremental at best.

What have they been doing all these years?

The Samsung Wake-Up Call

Recently, I gifted my wife a Samsung Galaxy S23, and it was an eye-opener. Compared to the price and value, the S23 beats my iPhone 15 in almost every way.

• Better AI features (Samsung leads with AI integration, while Apple is still catching up).
• More customization & flexibility – something Apple stubbornly refuses to embrace.
• Similar, if not better, camera capabilities.
• Faster innovation cycles – Samsung doesn’t sit on the same design for years.

Meanwhile, Apple continues to sell overpriced, barely updated devices, relying on brand loyalty rather than actual innovation.

The Future of Apple

Apple is still a powerhouse, but if it continues down this path, it risks falling behind. Samsung, Google, and even Huawei are catching up fast.

If Apple doesn’t revamp its approach, we might just see history repeat itself – and not in a good way.