Apple’s market value falls below $2 trillion, stock price at lowest since June 2021
Apple’s stock market value dropped sharply on Tuesday, pushing the iPhone makers market valuation below $2 trillion as shares declined to their lowest value since June 2021 at $125.07, with investors fearing supply constraints and weakening demand amid global economic difficulties.
At closing on Tuesday, Apple saw shares fall 3.7% following a plagued holiday quarter filled with supply issues, resulting in Apple falling to a market valuation of $1.99 trillion, down from $3 trillion last January when Apple became the first company in the world to hit the record high market value.
Despite performing well over the pandemic, where Apple saw strong growth in iPad and Mac sales due to the rise in remote working, issues relating to supply are fundamentally behind the fall in value, with iPhone manufacturing plants being forced to close in the run up to the busy holiday shopping quarter due to COVID-19 infections amongst staff, leading to mass stock shortages.
It has been reported that the shortages could have seen Apple ship 20 million units lower than expected over the fourth quarter of 2022, with respected industry analyst Ming-Chi Kuo lowering his iPhone shipments forecast for the holiday quarter by 20% to 70-75 million units, down from 80-85 million units previously.