Apple Inc. has experienced a sharp decline in its market capitalization, losing $350 million over the past 10 days. This downturn comes as the company grapples with soft iPhone sales and a sell signal triggered on the stock market. The tech giant's stock fell 1% to close at $234.40 on Monday, marking a significant drop beneath its 50-day moving average line in heavy volume, which is considered a sell signal by many investors.

Reports from Counterpoint Research indicate that Apple's iPhone unit sales fell 2% worldwide in 2024, while total global smartphone unit sales increased by 4%. Apple's market share in the smartphone industry dropped from 19% in 2023 to 18% in 2024, positioning it as the second-largest smartphone vendor behind Samsung, which holds a 19% share. Despite the decline in overall sales, there has been a pivot towards Apple's ultra-high-end models, which has helped offset some of the declines, according to Ivan Lam, a senior analyst at Counterpoint Research.

Further complicating Apple's situation, TF International Securities analyst Ming-Chi Kuo has expressed concerns about the company's future. Kuo's latest industry research suggests that Apple will face challenging hurdles in 2025, including nearly stagnant iPhone growth, AI services that have yet to contribute significantly, and an ongoing decline in the Chinese market. Kuo also noted that Apple has been cautious in discussing its 2025 iPhone production plans with key suppliers, predicting that handset shipments could fall 8% to 10% below consensus estimates, projecting roughly 220 million to 225 million units for 2025 compared to about 220 million in 2024.

Adding to the pressure, Meta Platforms CEO Mark Zuckerberg criticized Apple for its lack of innovation and for 'squeezing people' for money during a podcast interview with Joe Rogan. Zuckerberg's comments highlight a broader sentiment in the tech industry that Apple has not introduced groundbreaking products since the iPhone was created by Steve Jobs.

Despite these challenges, Apple remains a significant player in the tech sector. The company's market capitalization stands at $3.54 trillion, with a price-to-earnings ratio of 38.62x. Apple reported Q4 2024 earnings per share (EPS) of $1.64, beating estimates of $1.60 by 2.50%. The next earnings report is expected on January 30, 2025, with an EPS estimate of $2.35.

From a technical analysis perspective, Apple's stock closed down 1.03% on Monday, January 13, 2025, on 1.11 times normal volume. The price action formed a bullish hammer candlestick pattern, which may indicate an upside reversal. However, due to the stock's strong downtrend, it may remain oversold for a while. Investors are advised to look for price action above the high of the hammer for confirmation of a potential reversal.

As Apple navigates these challenges, the company's future performance will be closely watched by investors and industry analysts alike. The tech giant's ability to innovate and adapt to market demands will be crucial in reversing its current downward trajectory.