With a four percent drop in the value of Apple shares in the last 24 hours, for the first time since 2021, the market value of this company has reached below two trillion dollars. Apple shares recorded their worst performance since mid-2021 and concerns about iPhone production volume and declining demand for some products continue.
Despite the significant drop in Apple’s stock, the company is still faring better than other tech giants. Apple has lost 27% of its market value in the last year, while the Nasdaq index has fallen by 33% in the same period. Apple has experienced revenue growth for 14 consecutive quarters. The company’s revenue is expected to decrease by 1% in the fourth quarter of 2022.
Foxconn, the business partner of Apple and the main manufacturer of the company’s devices, has faced many problems due to the quarantines caused by the corona virus in China. This caused the production volume of new iPhones to drop during the important holiday season. Foxconn says its main factory in China (nicknamed iPhone City) is back to 90 percent production capacity and that conditions will improve over time.
McRumors He writes that Apple has told a number of its suppliers to produce fewer parts for AirPods, Apple Watch and MacBook because the demand for these products will drop in the first quarter of 2023. It is even predicted that iPhone sales will decrease in 2023.
Apple briefly crossed the three trillion dollar market cap exactly one year ago to set an unattainable record. In 2020 and 2021, the demand for electronic products – especially Apple devices – experienced a significant growth, and the company was able to take full advantage of the corona virus epidemic.
At the time of writing this article, each Apple share is trading at around $124.