Apple (NASDAQ:AAPL) stock has endured a slow 2023 and the start of 2024. Supply chain disruptions in China, antitrust woes, a slowing global economy, and a shift towards other leading AI tech giants have battered shares.
Despite this, Apple’s stock could regain momentum in 2024. Bullish investors and analysts cite key factors for Apple’s success. This includes the release of the Apple Vision Pro and a redefined AI focus. Though not guaranteed, Apple is expected to excel in presenting a compelling case for 2024.
The Arrival of Apple Vision Pro
One of the most significant potential growth areas for Apple remains augmented reality and mixed reality. The market for these immersive technologies will explode in the coming years.
The Apple Vision Pro became available to the U.S. public on February 2nd, 2024. So far the AR headset has received mixed reviews, and its high price is likely to attract only a small subset of buyers.
However, like all Apple products that could quickly change, especially if the price point becomes more affordable.
Speculation suggests that this product will be targeted towards developers and enterprise use. Others believe that Apple might release a more consumer-centric version at a later date.
Services Business and Artificial Intelligence
Apple has been aggressively expanding its services business, building it into a robust source of recurring revenue. This segment includes Apple Music, Apple TV+, Apple Arcade, iCloud, Apple Pay and more.
Apple’s services has proven to be a high-margin business, less susceptible to supply chain constraints compared to its hardware business. The ongoing growth of the company’s services business provides a crucial against fluctuations in product sales.
The company made a strategic move to scrap its multi-billion dollar plan to create an electric car. While this may seem like money wasted, this couldn’t have been better news for investors who believe Apple is well behind in the AI race.
Apple stock is well behind leading technology giants like Microsoft, Amazon, and Google in generative AI. AI is poised to be a truly transformative driver across nearly every industry imaginable.
Redirecting focus from the goal of an overpriced electric self-driving car towards core AI technologies would be a savvy, forward-looking move.
Apple Stock: Challenges Exist But Promise Persists
While immediate challenges still exist for Apple stock in 2024, the potential for a rebound in the coming years is significant. A slowdown in China and antitrust lawsuits present short term headwinds to the business.
However, the company’s services business remains strong and they have made strategic moves to shift focus towards AI.
Though past performance is no guarantee of future results, investors with a long term outlook may be rewarded by staying the course with Apple stock.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
