Know the reason behind Apple loss of $1 trillion in market value 2022
Key Takeaways:
- Since December 2021, when Apple became the 1st publicly traded company to be valued at USD 3 trillion, this is the first time a similar occurrence has taken place.
- The only major economy dealing with such a crisis has seen its manufacturing suffer due to a fresh wave of Covid infections in China.
During Tuesday’s trading, Apple’s market capitalization fell below USD 2 trillion.
This is the first time something similar has occurred since December 2021, exactly one year after Apple became the 1st publicly traded company to be valued at USD 3 trillion.
This translates to a USD 1 trillion in market value loss in just one year for the tech giant.
Like many other tech companies, Apple has experienced problems with its supply chain. A new wave of Covid infections in the only major economy dealing with such a crisis has hurt its manufacturing in China. Apple’s stock declined by almost 4% on Tuesday, January 3.
According to a Monday Nikkei report, Apple had informed some suppliers that it would produce fewer components for some of its best-selling items, including the AirPods, Apple Watch, and Macbooks.
A manager at an Apple supplier quoted Nikkei Asia as saying, “Apple has made aware us to lower orders for about all product lines since the quarter ending December, partly because demand is not that strong.”
“The supply chain in China is still struggling to deal with the most recent abrupt policy changes, which brought a labour shortage due to the sharp COVID surges.”
These reports have also sparked concerns about the demand for Apple products.
Apple’s massive market capitalization decline is not unique to the company.
The share prices of Amazon and Meta have fallen by 50% and 63%, respectively, in the past year. In contrast, Apple’s share price has fallen by about 31%.
