Why Apple is 2025’s worst-performing Big Tech stock

Apple's Wobbly Throne: WWDC 2025 Reveals Deeper Cracks

Apple's Worldwide Developers Conference (WWDC) on June 9th promised innovation, delivering a "liquid glass" design and Apple Intelligence enhancements. However, the unveiling left analysts, developers, and investors feeling decidedly underwhelmed. The incremental updates, mirroring features already available from competitors, failed to ignite excitement. Apple's stock subsequently dipped 1.5% on the Nasdaq, a stark reflection of the company's broader struggles.

WWDC merely highlighted a deeper crisis. Apple's share price has plummeted nearly 20% this year—the steepest decline among the big five tech firms (Meta, Microsoft, Amazon, and Google). This downturn is fueled by a confluence of factors:

• Sluggish iPhone Sales: After two years of flat growth, iPhone sales dropped 0.8% year-over-year in the December 2024 quarter and only inched up 1.9% in the March quarter. Customer reluctance to upgrade is a major contributing factor.
• The China Challenge: China, once a cornerstone of Apple's success as both a market and manufacturing base, now presents a double threat. Weakening demand (iPhone market share dropped from 21% in Q4 2023 to 15% in Q1 2025), coupled with complex supply chain integration and geopolitical tensions, exposes Apple to significant risks. A Bloomberg Intelligence survey reveals only 21% of Chinese consumers would opt for an iPhone next, down from 29% a year ago.
• Regulatory Headwinds for Services: While Apple's services business ($96 billion in 2024 revenue) has boomed, its high profit margins are attracting intense regulatory scrutiny. Antitrust lawsuits in the US and the impact of the European Digital Markets Act are squeezing Apple's lucrative app store commissions and Google search engine deal (estimated at $20 billion annually).
• AI Laggard: Apple's AI ambitions are lagging significantly behind competitors. While startups and established tech giants integrate AI seamlessly, Apple's progress remains slow. The delayed and buggy Siri upgrades, limited Apple Intelligence features, and reliance on external partners (like OpenAI) underscore this critical weakness. This AI shortfall is intertwined with the stagnant iPhone sales, as Apple's failure to deliver compelling AI features impacts demand.

The Verdict: Apple's position is precarious. The WWDC 2025 event wasn't a turning point; instead, it illuminated a company struggling to maintain its dominance in a rapidly evolving tech landscape. The future for Apple appears uncertain, marked by a confluence of challenges that demand immediate and innovative solutions.