Apple loses $1 trillion in market cap in one year
One year to the day after being the first publicly traded tech company valued at $3 trillion, Apple's market cap dropped below $2 trillion during trading on tuesday for the first time since early 2021. Due to the decline, the tech giant's market capitalization dropped by $1 trillion in just one year. According to CNN, apple has experienced supply chain problems, just like many other IT companies. A new wave of Covid infections in the only large economy dealing with such an issue has hurt its manufacturing in China.
After a report raised doubts about the level of consumer demand for its products on january 3, Apple's shares fell by about 4%. According to a monday article in Nikkei Asia, apple recently informed multiple suppliers to produce less parts for some of its most well-known products, including MacBooks, the apple Watch, and AirPods, during the first quarter. Concerns regarding the demand for apple products have also been sparked by such allegations. But apple is hardly the only business to see its market capitalization drastically decline.
Although Apple's market value has decreased dramatically, other prominent technology businesses have seen percentage reductions that are more dramatic. According to the analysis, shares of amazon and facebook parent company Meta have decreased by almost 50% and 63%, respectively, during the previous year. According to the survey, apple had a decline of roughly 31% during the same time period.