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Apple's Market Valuation Drops Below $2 Trillion as Stock Price Continues to Fall

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Apple shares are down around 4% today, resulting in the company's valuation falling below $2 trillion for the first time since 2021. Apple's stock is at its lowest price since June 2021 as concerns mount about iPhone supply constraints in China and weakening demand for its products due to persistently high inflation and a looming recession.

apple-store-brussels-belgium.jpeg

While the stock market has experienced a broader downturn, the Financial Times today reported that Apple has fared better than some of its peers, losing 27% of its value in the past 12 months, versus a 33% loss for the tech-heavy Nasdaq Composite as a whole. Apple has reported 14 consecutive quarters of growth, but the company is estimated to report around a 1% drop in revenue in the fourth quarter of 2022.

Apple's manufacturing partner Foxconn has faced iPhone production constraints due to COVID-19-related workplace protests and labor shortages over the past few months, leading to shipping delays for the iPhone 14 Pro and iPhone 14 Pro Max. However, Foxconn said that its main iPhone factory in Zhengzhou, China was operating at 90% of its peak capacity as of December 30, indicating that the situation is improving.

Nikkei Asia on Monday reported that Apple notified several suppliers to build fewer components for AirPods, the Apple Watch, and MacBooks in the first quarter of 2023 due to weakening demand. Shipments of all of those products and the iPhone are set to decline on a year-over-year basis in 2023, according to research this week from Jeff Pu, an analyst at Hong Kong investment firm Haitong International Securities.

Apple briefly became a $3 trillion company in January 2022 after the COVID-19 pandemic fueled strong demand for its products in 2020 and 2021. Apple products were in high demand as more people worked, learned, and connected with others from home.

AAPL was trading at around $124.26 as of writing.

Article Link: Apple's Market Valuation Drops Below $2 Trillion as Stock Price Continues to Fall
 
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https://www.macrumors.com/2023/01/03/aapl-falls-below-2-trillion/
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Realityck

Realityck

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Nov 9, 2015
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MacRumors said:
Apple shares are down around 4% today, resulting in the company's valuation falling below $2 trillion for the first time since 2021. Apple's stock is at its lowest price since June 2021 as concerns mount about iPhone supply constraints in China and weakening demand for its products due to persistently high inflation and a looming recession.
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You have to look at the markets with a long term view. The iPhone was the stimulus back in Fall 2009, that was the new and a must-have gadget for Apple. This time they need to find another product to market. The mixed reality communications device (AR) could be what the doctor needs this time.
 
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User 6502

User 6502

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TheYayAreaLiving 🎗 said:
Ouch! Devastating news. This is going to be tough upcoming months for Apple. Folks, stop holding on to your devices and upgrade!
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I’ll upgrade when apple releases something worth upgrading for. iPhone 14 sucks. Apple Watch series 8 sucks. They can keep them, and it appears I am not the only one who skipped them. Maybe this’ll teach them a lesson and iPhone 15 and Apple Watch 9 will be more interesting. Otherwise I’ll skip those too, it’s not like having the latest iPhone or Apple Watch is a necessity. Most people only bothers if they are genuinely exciting, and iDevices lately haven’t been.
 
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ghanwani

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QCassidy352 said:
Hurts as a shareholder, but the company remains strong. The stock price will recover when macro conditions improve.
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Current stock price is all financial engineering. The macro outlook for supporting financial engineering is not good. I was predicting they’d go to $10T by now but the fed shut the spigot and now draining liquidity from the system, so I think Apple has a shot at hitting $1T.
 
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adamlbiscuit

adamlbiscuit

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given the inflation-led price increases in many of Apple's major markets, it's no wonder. Prices in the UK and other territories are ridiculous and some products saw a significant price hike even without any updates (iPad mini for example).

It's times like this with the broader economic situation, people start to re-evaluate what they spend their money on. That coupled with prices skyrocketing mean many people are left bowing out of the tech game (for the time being at least).
 
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sw1tcher

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QCassidy352

QCassidy352

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ghanwani said:
Current stock price is all financial engineering. The macro outlook for supporting financial engineering is not good. I was predicting they’d go to $10T by now but the fed shut the spigot and now draining liquidity from the system, so I think Apple has a shot at hitting $1T.
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$1T is possible depending on the fed, but it has nothing to do with Apple the company. The company will be fine, and the stock will soar again when fed reversed course.
 
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airwalk331

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Mar 20, 2012
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airwalk331 said:
If I were Apple, I'd worry more about the quality of the product it's putting out rather than avail... Just about every update I've downloaded has had numerous bugs (that haven't been fixed) and almost all products I gave as gifts have had to be returned or exchanged : (
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macdisciple

macdisciple

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User 6502 said:
I’ll upgrade when apple releases something worth upgrading for. iPhone 14 sucks. Apple Watch series 8 sucks. They can keep them, and it appears I am not the only one who skipped them. Maybe this’ll teach them a lesson and iPhone 15 and Apple Watch 9 will be more interesting. Otherwise I’ll skip those too, it’s not like having the latest iPhone or Apple Watch is a necessity. Most people only bothers if they are genuinely exciting, and iDevices lately haven’t been.
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iPhone 14 doesn't "suck. It sounds like iPhone 14 "sucks" for you, but for someone upgrading from much older models, iPhone14 is "great!". You cannot expect reinventing the wheel or even interesting upgrades every 12 months any longer - look at the automobile industry as an example. As you said, upgrading year to year is not a necessity. Maybe tone down your expectations to more realistic levels?
 
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sw1tcher

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