Analyst Explains ‘The Problem’ With Apple (AAPL)

Core Insights - Apple Inc (NASDAQ:AAPL) is facing challenges in attracting investor interest despite the launch of the new iPhone 17, as market conditions appear tough [1][2] - The company has not experienced a significant product cycle in four years, and recent innovations are seen as incremental rather than revolutionary [2][3] - Apple is losing its pricing advantage in key markets like China, facing competition from companies like Samsung and Xiaomi, which are able to offer advanced features [3] Market Performance - Apple Inc's stock underperformed the S&P 500 in the second quarter of 2025, with the Macquarie Core Equity Fund noting a significant underweighting in their portfolio [4] - The company is struggling to grow at historical rates due to the maturation of key products, despite having strong repurchase intent [4] Consumer Behavior - Early indicators suggest a strong consumer response to the iPhone 17, but it remains uncertain if this enthusiasm will translate into long-term stock performance [3] - The iPhone upgrade cycle has extended to 35 months in the US, with 63% of users keeping their devices for over two years, indicating a potential slowdown in sales [3]