Apple was the first company to reach a market value of $3 trillion. That cape was reached one year ago. Since then, the tech company has lost $1 trillion in market value.
For the first time since March 2021, Apple is worth less than $2 trillion. Incidentally, the $ 3 trillion mark was only reached on January 3, 2022, now exactly 366 days ago. So Apple lost more than $1 trillion in market value in a year. Investors seem particularly concerned about declining hardware sales in times of inflation. For example, it is already expected that Apple may deliver ten million AirPods 3 to customers this year.
Apple would have asked its suppliers to produce fewer parts for its AirPods, Apple Watch models and MacBooks. This is reported by Nikkei Asia. Whether the company also joins the companies that have scaled down their chip orders from TSMC is not known.
Apple sales down
Analysts do not only expect contraction for the coming year. According to Reuters, analysts foresee a 1 percent contraction in Apple’s revenue for Q4 2022. This would place the tech company in the books for the first time since 2019. The company may be able to recover from this decline in the coming year. There would already be cheaper AirPods on the way that should attract more customers to AirPods. Apple also plans to give the basic models in the iPhone 15 series a Pro makeover, according to analysts.
Apple hopes that this may attract more new non-Apple users to its ecosystem. The latter is not unimportant for Apple given the income it derives from in-app purchases.
Apple is not the only company that sees market value evaporate. Microsoft dipped below $2 trillion in market value last year. The Saudi Aramco also had to report a fall in market value below $ 2 trillion. So for the time being, Apple is closing the last row of companies that have to deal with challenging market conditions.