Once the dominant force in consumer tech, Apple is now the worst-performing member of the “Magnificent Seven,” with its stock down 18% in 2025 and its market cap slipping to third place behind Microsoft and Nvidia. While rivals like Google, Amazon, Meta, and Tesla aggressively push into AI and data infrastructure, Apple has lagged, unveiling its Apple Intelligence suite late and with limited impact. Its Vision Pro headset disappointed, and its decade-long autonomous vehicle project was scrapped after burning $10B.
Meanwhile, iPhone sales are plummeting in China, legal scrutiny looms over the App Store, and tariffs under President Trump are raising costs and political tensions. Apple’s supply chain pivot to India has angered the White House, eroding Tim Cook’s former influence. While Services revenue grows, it can’t offset slowing hardware sales or Apple’s lack of a breakout AI product. In a market defined by fast-moving innovation, Apple’s incremental updates leave it looking like a follower, not a leader.