Apple shares plunged more than 3% trading on January the 3rd. The iPhone maker hit a market capitalization below $2 trillion for the first time since last year in May. The price per share was $130.20 as it plunged by 3% or $3.74. The company’s valuation was $1.99 trillion during market close, it’s a 52-week low. Last two years, Apple achieved a $2 trillion valuation. The main driving force for this valuation was due to the sales of computers and phones for remote work and school. During Covid-19, the company hit a market value for more than $3 trillion in January 2022.
Apparently, Apple had a hard time shipping iPhone 14 during holiday seasons for Covid-19 restrictions continue to worsen. In addition, investors are now wary of raising interest rates and declining consumer confidence. This could really damage Apple’s premium-priced products’ demand. The most recent report from Trendforce, the supply chain analyst, argued that Apple’s iPhone shipment fell 22%. This decline persisted in December 2022. Based on Nikkei’s report, Apple has announced the supplies to make fewer components for products. The products cover Apple Watch, MacBook laptops, as well as AirPods.
In this case, Apple is the last giant company to let go of their $2 trillion valuation. Meanwhile, Microsoft hit the $2 trillion mark but went back from it in 2022, previously. The border market followed the slump on the same day, with the S&P 500 index jumping under 1% trading. This means in last year in 2022, Apple underperformed the S&P 500 index with a decline above 18%. In 2022 last year, the company’s share price also plunged nearly 27%.
