Once hailed as a top-performing global stock, Apple (NASDAQ: AAPL) has faced challenges since the beginning of 2024. In January, it lost its title as the world’s largest company by market capitalization to Microsoft (NASDAQ: MSFT), and by June, Nvidia (NASDAQ: NVDA) threatened to push it down to third place.
While Apple remained dominant in the smartphone market, it abandoned its long-standing goal to enter the electric vehicle (EV) industry. One of the reasons for Apple’s lackluster stock market performance has been its failure to capitalize on the artificial intelligence (AI) boom, unlike competitors like Microsoft.
Despite several attempts to enter the AI sector, Apple made a significant move on June 10 at the Worldwide Developer Conference 2024 by announcing a partnership with OpenAI to integrate ChatGPT into its operating systems for computers and mobile devices.
Interestingly, this partnership did not have a significant impact on Apple’s stock price, which continued to decline in the days following the announcement. The lackluster response to the news could be attributed to the changing public perception of AI, which has recently sparked concerns and skepticism among consumers.
The AI industry has faced accusations of intellectual property violations, leading to a growing dissatisfaction with the technology. The overuse of the term “AI” as a buzzword by companies has also contributed to its diminishing value and credibility as a business strategy.
Apple’s reliance on OpenAI for AI technology may have also played a role in its decline as a technological innovator, positioning it as a follower rather than a leader in the industry. Despite advancements made by companies like OpenAI, the future of AI and its potential impact remains uncertain.
In conclusion, Apple’s recent struggles and declining stock performance may be attributed to its failure to capitalize on the AI boom, changing public perceptions of the technology, and its reliance on external partnerships for AI development.
