Analyst Explains Why Apple (AAPL) Will Struggle to Maintain Its Customer Base – ‘They’ve Gone On The Defense’

Core Viewpoint - Analysts express concerns about Apple Inc.'s (NASDAQ:AAPL) declining ability to innovate and raise prices, which may jeopardize its user base and competitive position in the market [1][2]. Group 1: Innovation and Pricing - Laura Martin from Needham highlighted that Apple is "not innovating," making it challenging for the company to maintain its installed user base [1]. - The iPhone upgrade cycle has reached 35 months in the US, with 63% of iPhone users keeping their devices for over two years, indicating a slowdown in consumer upgrades [3]. - Apple is losing its pricing edge, particularly in key markets like China, where competitors like Samsung and Xiaomi are able to introduce advanced features [3]. Group 2: Market Challenges - Concerns about decelerating iPhone sales and growth headwinds in China have put pressure on Apple's stock, despite solid operating results [4]. - The company faces unexpected costs from tariffs, quantified at $900 million, which adds to its financial challenges [4]. - Recent legal developments in the Apple vs. Epic Games lawsuit have raised questions about Apple's control over its App Store, further complicating its market position [4].