Apple loses $1 trillion in market value in one year
- Hope King, author of Axios Closer
Investors drove Apple's market value below $2 trillion during the first trading session of 2023, a year after propelling it to become, briefly, the first U.S. company to reach $3 trillion.
What's happening: Shares of Apple tumbled Tuesday morning by more than 4%, after a Nikkei Asia report reignited worries about demand for the company's products.
- According to the report, published Monday, Apple reportedly notified several suppliers to build fewer parts for some of its devices, including AirPods, the Apple Watch and MacBooks.
- A spokesperson for Apple did not immediately respond to a request for comment.
- Shares of Apple closed down 3.7%.
Be smart: Investors are in a waiting period ahead of earnings, when details about Apple's all-important holiday quarter will be released and forecasts will be issued.
The big picture: Apple's stock rose 34% in 2021 when markets had one of their best years ever — but also as stay at home stocks were on their way down as global economies began to reopen.
- Rapid inflation and rising interest rates changed consumer moods and overhauled market conditions in 2022, ending Big Tech's 20-year run of mad growth, Axios' Scott Rosenberg has written.
- Apple last year fared better than its Big Tech peers — Meta, Amazon, Alphabet and Netflix — and the Nasdaq 100. Collectively the FAANG stocks lost more than $3 trillion in market cap.
What to watch: Apple investors have also been concerned about the company's ability to produce enough devices to sell as COVID lockdowns and abrupt policy changes in China impacted supply chains.
- Reuters reported Tuesday that Foxconn's Zhengzhou city iPhone plant is almost back to full production.