Editing Apple Inc. (section)

=== Challenges and Market Headwinds   ===

Despite its successes, Apple faced significant challenges in 2022. Supply chain disruptions and component shortages, exacerbated by China’s zero-Covid policy and geopolitical tensions, led to $1.5 billion in lost Black Friday sales<ref>{{cite web |url=https://www.imd.org/research-knowledge/operations/case-studies/apple-s-supply-chain-transformation/ |quote=Apple lost US$1.5 billion in Black Friday sales due to iPhone supply constraints in 2022. }}</ref>. The company’s reliance on Chinese and Hong Kong-based suppliers, which account for a larger share of its supply chain compared to American and Japanese counterparts, complicated its strategy<ref>{{cite web |url=https://www.investopedia.com/articles/investing/090315/10-major-companies-tied-apple-supply-chain.asp |quote=Chinese and Hong Kong-based suppliers account for a larger share of Apple's supply chain than America and Japan in 2022. }}</ref>. Competitive pressures intensified, particularly in China, where iPhone sales declined amid fierce rivalry from local and global players<ref>{{cite web |url=https://www.girolino.com/apples-revenue-challenges-declining-iphone-sales-and-antitrust-lawsuit/ |quote=Apple faces challenges including declining iPhone sales, intensifying competition in key markets like China, and an antitrust lawsuit. }}</ref>. Regulatory hurdles, including antitrust investigations and privacy regulations, added further complexity. However, Apple’s ecosystem and services growth provided a critical buffer. The App Store facilitated $1.1 trillion in developer billings and sales, while the services segment reached an all-time quarterly high of $24.97 billion, marking an 11% year-over-year increase<ref>{{cite web |url=https://www.apple.com/newsroom/2023/05/developers-generated-one-point-one-trillion-in-the-app-store-ecosystem-in-2022/ |quote=Developers generated $1.1 trillion in the App Store ecosystem in 2022. }}</ref><ref>{{cite web |url=https://9meters.com/technology/phones/apples-services-shine-fueling-strong-quarterly-results-despite-iphone-dip |quote=Apple’s Services segment hit an all-time quarterly high of $24.97 billion, representing an 11% year-over-year increase. }}</ref>.