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

[JPack]

The iPhone Pro models get the headlines, but the bulk of Apple's revenue comes from non-Pro devices. If customers aren't interested in regular iPhones, that's a big deal.

AirPods are almost like a subscription with recurring revenue due to their disposable battery design. If Apple doesn't think consumers are buying those this year, that's a pretty bad sign of things to come.

 

[Red Oak]

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.

You tell them! Teach them a lesson. I'm sure your buying power is significant!!

 

[roar08]

You only win or lose when you sell.

 

[UltimateSyn]

That’s painful, as it’s the only single stock I invest in (though not a significant % of my net worth). I think they’ll recover, though. Time to buy more! 🤣

 

[lovehateapple]

Will continue to drop as long as the monetary policy is tight. And it will act like a ball and chain on the stock indexes.

Ha, monetary policy is not tight. Interest rates are not even back to historical norms. Real interest rates are still negative when you factor in inflation. If the Fed were to pivot and start lowering rates, inflation would take off like a rocket ship (again). I agree with you corporate earning will be weighed down as the stock market bubble we've been in deflates.

 

[arpi]

Maybe they will start innovating again...

 

[Hrvoyay]

Maybe they could raise European prices even further, that will help with the demand. After all, strong dollar, skin the rest of the world, suckers. Got me Sony headphones, better battery, sound and ANC anyway, at half the price of Apple, will stick to Air 4 till it dies because 12’9“ prices are lol, and I ain’t paying M2 Air prices for a phone. It’s not the recession, I could buy that stuff, I just won’t be skinned cause I use €.

 

[Andres Cantu]

$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.

I agree that Apple will be fine, however, the Fed reversing its course and the “stock will soar” mentality is a dangerous way of thinking. Investors aren’t accustomed to stocks going sideways for a lengthy amount of time (many years), and I would hope people can at least take that idea into consideration when investing.

 

[falainber]

You only win or lose when you sell.

Almost 70M AAPL shares have already been sold today.

 

[ghanwani]

$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.

It won't soar again because without easy money, stock buybacks won't be lucrative (not to mention a new 2% tax on buybacks which goes into effect this year). And easy money is not coming back any time soon. Apple has tons of debt (which they used for buybacks) which they need to first pay off at the same time that inflation and supply chain reconfiguration are hurting margins. I guess we'll just have to wait and see what happens. I never anticipated rates getting so high to begin with...

 

[Red Oak]

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.

Sounds like you're an expert in financial investing and modeling. Would love to see your spreadsheet calculations getting you to $10T then and $1T now. I bet your very proud of your investment portfolio

 

[purplerainpurplerain]

Market caps are BS anyway. They give different P/E to different companies. They just pluck these numbers out of the air.

The only real numbers are sales, how much profit they made in the past until present and how much cash they sit on.

 

[Unity451]

Global pandemic with some countries (china) still having extremely strict guidelines... record government spending... people still getting paid to stay home rather than working... consumer tech industry hitting an innovation ceiling... global wars (and rumors of wars) impacting overseas manufacturing... inflation on the rise... recession looming... unemployment on the rise... more government spending...

You can't shut down the world for a year and not expect the consequences to be severe.

 

[tYNS]

You tell them! Teach them a lesson. I'm sure your buying power is significant!!

He is not alone. There are lots of people that have no care to upgrade. The innovation out of apple is stale. There is a reason top players have left. The culture has changed to riding a wave of 2000-2010. Never had I seen a company innovate so quickly in such a short period of time in that period. The last ten years have seen a pencil, watch, speaker and earbuds. The majority of the software library was revisionary updates. Server products dumped. Key technologies abandon. A series of serious hardware design failures. It's heavily streamlined production with glue holding mostly everything together and the idea that nothing is fixable, just replace. Great for profits, not for recessionary times.

 

[lovehateapple]

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).

Central bank monetary policy didn't just cause inflation in consumer prices. It also caused massive inflation in asset prices, like AAPL stock and others. Now the bubble is deflating so things can go back to normal.

 

[ghanwani]

Market caps are BS anyway. They give different P/E to different companies. They just pluck these numbers out of the air.

The only real numbers are sales, how much profit they made in the past until present and how much cash they sit on.

You forgot how much debt they are sitting on.

 

[I7guy]

AAPL lost $1T in market capitalization.

Tesla didn’t do too well either.

 

[compwiz1202]

I didn't know my current Apple devices were incapable of doing those things.

Heck I just paid rent on my Z Flip 4. And I could have no phone and pay on the computer or forbid go back to ancient times and write a check. After I order some that is

 

[Hrvoyay]

iPhone 14 doesn't "suck. It sounds like iPhone 14 "sucks" for you, but for someone upgrading from much older models, iPhone14 is "great!".

I’m still on 11 Pro Max. Since software is the same anyway, the only thing i would get with a 14 (Plus) is a different shape/design. 14 Pro Max would bring the island and significant display improvement. But it’s priced above laptops, so no. You need to be upgrading from devices older than X to have ”great” effect on regular 14s.

 

[I7guy]

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.

Apple doesn’t want you to upgrade every year. Buy what you and don’t worry about the stock price. Move to android. Won’t move the needle.

 

[Realityck]

Apple better hurry up and release that Classical Music app so we can all relax better.

 

[lovehateapple]

That’s painful, as it’s the only single stock I invest in (though not a significant % of my net worth). I think they’ll recover, though. Time to buy more! 🤣

Sounds like its time to diversify. I recommend watching End of the Road, How Money Became Worthless on YT and also Mike Maloney's Hidden Secrets of Money. Well worth the time, imho.

 

[Macintosh Quadra 840av]

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.

That describes every mature product in the world.

Look at cars. It's rare there's a big change from year to year. Generally they're incremental updates. Some changes to the interior, maybe 1mpg better and a bit more power from the engine, a couple little visual tweaks.

TVs? When's the last time we've seen a huge advance there. Sure, they show some cool new tech each year at CES but for most consumer TVs, little changes year to year. Incremental improvements in features and performance.

Computers? Same. Smartphones from other manufactures? Same.

This is what happens with any mature product category. You don't see the same big leaps. And that's normal. It shouldn't be expected. You're only going to get that when a product category is new. At times you may see a jump, as when Apple introduced the M1 processor or vehicles get their major updates or big tech changes (like going electric) but it's not something you're going to see every year.

Technology growth (like most ideas) is almost always evolutionary, not revolutionary.

 

[Mrkevinfinnerty]

He is not alone. There are lots of people that have no care to upgrade. The innovation out of apple is stale. There is a reason top players have left. The culture has changed to riding a wave of 2000-2010. Never had I seen a company innovate so quickly in such a short period of time in that period. The last ten years have seen a pencil, watch, speaker and earbuds. The majority of the software library was revisionary updates. Server products dumped. Key technologies abandon. A series of serious hardware design failures. It's heavily streamlined production with glue holding mostly everything together and the idea that nothing is fixable, just replace. Great for profits, not for recessionary times.

Have you not heard about the always on lock screen? 🤷‍♂️

 

[alfonsog]

It's all artificial value, none of those valuations could ever be realized. Like when it was 3 trillion it's not like they could liquidate themselves for 3 trillion and give the money back to shareholders. It's always in flux.