Apple share price drops 10% after unveiling new products

​Apple’s stock has dropped 10% over the past month, underperforming the market while rivals like Nvidia and Palantir gained.

Key Takeaways

- Apple’s stock dropped 10% over the past month, underperforming the Nasdaq Composite, which fell 5% during the same period.

- Despite short-term volatility, Apple’s total shareholder return over the past five years reached 252.98%, significantly surpassing industry averages.

- Apple remains committed to long-term growth with a $500 billion U.S. investment plan, but economic concerns, legal challenges, and governance issues pose risks.

Stock Decline Amid Market Pressures

Apple’s stock price has fallen by 10% in the past month, significantly underperforming the broader Nasdaq Composite, which dropped nearly 5% over the same period. The decline can be attributed to a mix of broader market pressures, including economic concerns and inflation fears, exacerbated by new tariff policies, reports Simply Wall Street.

Apple Inc (AAPL) share price dynamics (2021 - Mar 2025) Source: TradingView

While the overall tech sector has seen mixed performance, companies like Nvidia and Palantir have posted gains, drawing attention to Apple’s divergence from the rally. Investors appear concerned about Apple’s ability to maintain growth in a challenging macroeconomic environment, especially as competition in the consumer electronics space continues to intensify.

Additionally, the tech giant’s stock performance has been impacted by investor sentiment surrounding its governance decisions. At its recent annual shareholder meeting, several proposals aimed at influencing company policies failed to pass, signaling potential disconnects between management and investor priorities.

Long-Term Shareholder Returns Remain Strong

Despite recent stock volatility, Apple has maintained a strong track record of delivering value to its investors. Over the past five years, the company’s total shareholder return has reached 252.98%, significantly outpacing the broader U.S. tech industry average.

A key driver of Apple’s shareholder value has been its aggressive stock buyback program. Since launching its repurchase initiative, Apple has bought back approximately $539.20 billion worth of its own shares—one of the largest buyback programs in corporate history. This approach has helped support the stock price and deliver substantial value to long-term investors.

Furthermore, Apple’s ability to consistently generate strong revenues and maintain profitability has solidified its reputation as a resilient company. However, recent revenue growth has shown signs of slowing, with the company facing increased competition in its core markets, particularly in the smartphone and personal computing sectors.

Growth Strategy and Market Challenges

Apple continues to invest heavily in future growth, with a commitment to a $500 billion U.S. investment plan. This strategy highlights the company’s long-term vision and focus on expanding its product lineup, improving supply chain efficiency, and deepening its presence in key markets.

In addition to hardware advancements, Apple has been expanding its digital services ecosystem, strengthening its partnerships, such as its collaboration with Bharti Airtel to extend its digital content reach. These efforts are expected to drive long-term growth, although competition from rivals like Google, Amazon, and Microsoft remains a significant challenge.

However, legal challenges pose risks to Apple’s growth trajectory. The company faces ongoing lawsuits related to product safety and intellectual property disputes, which could lead to regulatory scrutiny and potential financial liabilities. Moreover, concerns over Apple’s high Price-to-Earnings (P/E) ratio have led some analysts to question whether the stock is overvalued relative to its earnings potential.

Apple’s 10% stock decline highlights short-term challenges despite continued innovation and strong historical performance. While the company remains a leader in the tech industry and maintains a robust long-term strategy, macroeconomic pressures, legal concerns, and governance challenges may continue to weigh on investor sentiment in the near term.

​Additionally, Apple Inc. has appointed long-time executive Kim Vorrath to a senior role in its artificial intelligence and machine learning division.