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

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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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.

Tag: AAPL

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Top Rated Comments

icanhazmac Avatar
19 months ago

Folks, stop holding on to your devices and upgrade!
Yes, hurry up and trade in your perfectly good devices for slightly better ones just to "fix" Apple's valuation in the short term. :rolleyes: /s

P.S. - How is the news "devastating"? Kinda par for the course in these times.
Score: 26 Votes (Like | Disagree)
User 6502 Avatar
19 months ago

Ouch! Devastating news. This is going to be tough upcoming months for Apple. Folks, stop holding on to your devices and upgrade!
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.
Score: 23 Votes (Like | Disagree)
sw1tcher Avatar
19 months ago

Ouch! Devastating news. This is going to be tough upcoming months for Apple. Folks, stop holding on to your devices and upgrade!
Buy new Apple device(s) or spend money on necessities like food and shelter instead??? ? Tough decision
Score: 20 Votes (Like | Disagree)
Zest28 Avatar
19 months ago
How is this possible? I bought the Apple Studio Display. The stock price should have gone through the roof.
Score: 19 Votes (Like | Disagree)
antnythr Avatar
19 months ago
I feel Apple is on a downward trend as a company, but this downswing is hitting almost everyone right now and not some Apple specific issue.
Score: 15 Votes (Like | Disagree)
QCassidy352 Avatar
19 months ago
Hurts as a shareholder, but the company remains strong. The stock price will recover when macro conditions improve.
Score: 14 Votes (Like | Disagree)