Lost

Apple’s cash flow has declined significantly since last year and is flat since the end of 2021. What is going on?

Razor-Razorblade

Apple is a razor-razorblade business. It sells iPhones (52% of sales) and then ties in high margin services and accessories. The problem is that Apple has not sold more devices since 2021. Nothing is working. Key growth markets like China are now shrinking. In the mean time, the cost of selling devices and providing the services is rising, which drives down cash flow.

Lackluster

Apple’s flagship iPhone has failed to impress as many hardware features have become commoditized. Without a competitive AI or internet strategy on the software side, it is unclear what product platform can drive the next growth cycle at scale.