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Since March 2022, Apple has been struggling with a drop in the value of its shares, which understandably also reduces the company's market capitalization, or the total market value of all issued shares. It is precisely because of this that the Cupertino giant lost its position as the most valuable company in the world, which was taken over by the Saudi Arabian state oil company Saudi Aramco on March 11. What's worse is that the slump continues. While on March 29, 2022, the value of one share was $178,96, now, or May 18, 2022, it is "only" $140,82.

If we look at it in terms of this year, we will see a huge difference. Apple has lost almost 6% of its value in the last 20 months, which is certainly not a small amount. But what is behind this drop and why is it bad news for the entire market? This is exactly what we are going to shed light on together now.

Why is Apple falling in value?

Of course, the question remains as to what is actually behind the current drop in value and why this is happening. Apple is generally considered one of the safer options for investors who are thinking about where to "keep" their money. However, the current situation wavered a little with this statement. On the other hand, some economists point out that no one will hide from the influence of the market, not even Apple, which naturally had to come sooner or later. Apple fans began to speculate almost immediately whether interest in apple products, primarily in the iPhone, is waning. Even if that were the case, Apple reported slightly higher revenue in its quarterly results, suggesting that this is not an issue.

Tim Cook, on the other hand, confided in a slightly different problem – the giant does not have time to satisfy demand and is unable to get enough iPhones and Macs onto the market, which is mainly caused by problems on the supply chain side. Unfortunately, the exact reason for the current decline is not known. In any case, it can be assumed that it is a connection between the current inflationary situation and the aforementioned deficiencies in product supplies (primarily in the supply chain).

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Could Apple go under?

Likewise, the question arose as to whether the continuation of the current trend could bring down the entire company. Fortunately, there is no danger of such a thing. Apple is a globally popular tech giant that has been making great profits for years. At the same time, it benefits from its global reputation, where it still carries the mark of luxury and simplicity. Therefore, even if there is a further slowdown in sales, the company will continue to generate profit - it's just that it no longer boasts the title of the most valuable company in the world, but that doesn't really change anything at all.

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