
Apple Inc. is grappling with a substantial decrease in its market capitalization, amounting to a notable $510 billion reduction within a mere three-week period. This has potentially opened the door for Nvidia Corp. to surpass Apple and become the world's largest company, according to analysis conducted by The Kobeissi Letter. The primary reason behind this market shift is Apple's notable struggles in the Chinese smartphone market, where the company witnessed a significant drop of 17% in annual iPhone shipments in 2024, marking the most considerable decline in sales since 2016.
Warren Buffett, a prominent investor and long-time supporter of Apple, recently made a move to diminish Berkshire Hathaway's stake in Apple by 25%, while still continuing to hold a substantial 300 million shares. Despite this reduction, Apple maintains a crucial position, accounting for 26% of Berkshire's portfolio. JPMorgan analyst Samik Chatterjee has attributed Apple's challenges to various factors, including currency fluctuations, limited adoption of AI features, and challenging market conditions specifically in China. Chatterjee anticipates that Apple's first-quarter earnings may fall slightly below consensus estimates and potentially result in disappointing guidance.