The Apple firm – which recently ceded its crown of largest market capitalization to Microsoft – is entering a year with high stakes, linked to the boom in artificial intelligence where it has not yet revealed its cards, but also to the release of its mixed reality headset, the Vision Pro. Overview of its five main projects.
1 – Finally enter the AI race
The year started with bad news for Apple. The company is no longer the largest market capitalization in the world. More symbolic than anything else, the loss of this first place can be summed up in two words: artificial intelligence (AI). Much more discreet than its counterparts in the field, and more particularly Microsoft, the new king of NASDAQ, Apple has not yet made any transcendent announcements in the field. However, things are moving behind the scenes: the firm is currently developing a multimodal language model called Ferret. She also negotiates contracts in order to build up a solid database, particularly with the media. It’s a certainty: the star of Silicon Valley will not remain in the shadow of AI for long. If only to reclaim his throne.
2 – Stay the course on the iPhone, despite the headwinds
For the first time in more than ten years, Apple leads the number of smartphones sold worldwide in 2023, ahead of Samsung. A trophy acquired thanks to the release of its iPhone 15, the latest of the name, making the fourth quarter of 2024 an excellent year. Be careful, however, of headwinds: the smartphone market remains fragile, emerging from seven quarters of decline in global sales. Competition from high-end AI-boosted phones should also be felt in the coming months: Google and Samsung have already taken the lead in this segment. Another cause for concern: the awakening of Chinese manufacturers, starting with Huawei on its domestic market, and the new kid on the block Transsion, which is eating away at Samsung’s market share in the mid and low end. Finally, the emergence of devices specifically dedicated to AI, which are not phones, such as the Rabbit R1 and the Humane AI Pin, marks the beginning of a new era. A breakthrough in these gadgets, much cheaper than smartphones, could permanently shake up positions.
3 – Dodging bullets in the USA-China trade war
Apple is an unwilling player in the trade war between China and the United States. Caught in a vice, the brand is seeking to reduce its dependence on the Asian giant, a land on which the vast majority of its iPhones, MacBooks, iPads and even connected watches are produced. For several years, India, but also Vietnam, Thailand and Mexico, have welcomed production sites or suppliers. But the movement is slow, even though the two superpowers are fighting blow for blow. Apple wipes the plaster. In response to new deprivations of electronic chips on the part of the United States, Chinese officials denounce “security problems” on the brand’s devices and favor, even impose, within their ministries, smartphones manufactured by local businesses. This increasingly marked hostility has a visible commercial impact. iPhone sales declined by 30% in the first week of January in China, according to figures from Jefferies Research, pushing the company – an extremely rare occurrence – to offer discounts. A possible return to power of Donald Trump should only increase the tension between the two countries, and the problems for the Apple fuse.
4 – Successfully transition to mixed reality
It’s one of the most anticipated events of the year in Tech: the release of Apple’s mixed reality headset, the Vision Pro, at the beginning of February. Presented last June, it promotes an innovative approach: spatial computing. A way to dissociate yourself from the metaverse praised by its rival Meta and its Quest helmets. Given its price – $3,500 – the Vision Pro will not be a general public product immediately. The Californian company nevertheless needs the mayonnaise to take hold quickly: beyond the hardware, the idea is for developers to take ownership of this brand new environment. A way for the company to repeat the success of its famous App Store. And thus find a new goose that lays golden eggs.
5 – Dealing with regulation
For several years now, Europe has been engaged in a standoff with the major digital platforms. Apple was forced to abandon its proprietary Lightning connection in favor of USB-C and adopt the RCS standard for messages. This was just the appetizer. The implementation of the DMA (Digital Markets Act) in the spring promises to be much more disruptive for the company. This law should force it to open its application store, the App Store, to competition. Already under attack, at the same time, on the significant commissions taken in this same space – from 15 to 30% of each transaction – the company could lose its feathers, while 2023 had already been marked by a drop in its turnover. , a first in four years. The Cupertino company has until March 7 to present its strategy in Europe. Until then, another threat looms, internal this time: according to the New York Times, the US Department of Justice is reportedly on the verge of completing an investigation into anti-competitive behavior on the part of Apple. A major lawsuit could tarnish its valuable brand image.
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