Apple Needs New Growth to Justify Its Soaring Stock. It Won’t Be Easy.
Apple trades near record highs, with a market value no other company has ever attained. Now it has to justify the gains.
By
Eric J. Savitz
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Updated December 20, 2023 / Original December 20, 2023

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shares have had a historic year. The stock has rallied more than 50% in 2023 and recently closed at a record high. In terms of wealth creation, it has been the single best year for any company ever—Apple’s market value grew by $1 trillion.

But the unprecedented rally comes amid one of the company’s most disappointing stretches. In each of the past four quarters, Apple’s sales have declined from the prior year. The slide is likely to continue in the current December quarter. Apple’s most important hardware products—the iPhone, the Mac, and the iPad—still generate huge sales, but their growth is all but gone.

Meanwhile, Apple hasn’t had a hit new product since its AirPods, the pioneering wireless earbuds, launched in 2016. The backdrop makes the coming launch of the Apple Vision Pro, the company’s mixed-reality headset, all the more important. But success is far from certain: The promise of virtual and augmented reality has lured many entrants, including Meta
META

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Platforms and Microsoft, but there are few success stories.