Don’t feel too bad for the world’s most valuable company, but the new year is increasingly shaping up to be a challenging one for Apple.
What happened: A report that the US Justice Department is preparing to file a major antitrust lawsuit against Apple is the latest troubling news for the tech giant.
- According to The New York Times, the Justice Department is wrapping up an investigation focused on how the company uses its ecosystem of hardware and software to lock in customers and quash rivals.
And that’s not all. Apple is entering 2024 against a number of headwinds that threaten to end its 15-year streak of racking up win after win.
-
Phone woes: Sliding iPhone sales over the holidays, along with worries over the growing scope of China’s ban on the devices, have soured big investors on the company.
-
AWOL on AI: Nearly two years after the launch of ChatGPT, Apple has yet to get into the generative AI game, while competitors like Samsung gear up to launch new devices with built-in AI capabilities.
- App Store splits: The EU’s Digital Markets Act will be enforced come March, forcing Apple to offer European users the ability to install apps from outside the App Store and use third-party payment processors.
Why it matters: All of these challenges raise the stakes for Apple’s entry into AR with the launch of its Vision Pro headset in the coming months.
- The Vision Pro is unlikely to be a big revenue driver in the short term, but Apple is betting it will eventually turn into another super-profitable hit product like the iPhone and Watch.
Bottom line: 2024 will be a critical test of Apple’s ability to extend its dominance in tech from an era dominated by smartphones to one shaped by AI.