Apple Loses its Historic $3T market value as Stock Dips Due to Lack of iPhone Demand
Ten News Network
Cupertino (USA), 05/08/23: Apple’s reign as the world’s first $3 trillion corporation came to an end on Friday, a day after the company revealed its third consecutive quarter of decreasing revenue owing to lacklustre iPhone demand.
Shares of the Cupertino, California-based tech behemoth fell 4.8% on Friday, bringing its market valuation to a still healthy $2.86 trillion.
In the three months ending July 1 — Apple’s third quarter — sales was $81.8 billion, a 1.4% decrease from Q2 and a 3% decrease year over year.
On a conference call on Thursday, Apple’s Chief Financial Officer Luca Maestri stated that the company’s performance will be similar in the fourth quarter.
If Maestri is correct, another dip would mark Apple’s longest declining streak in two decades.
The stock of the California-based corporation has risen over 50% this year.
Apple became the first corporation in history to have a market capitalisation of $3 trillion in June.
Apple is the world’s most valuable firm by more than a trillion dollars.
Microsoft is ranked second, while Saudi Arabian Petroleum Company is ranked third, with market capitalizations of $2.4 trillion and $2.1 trillion, respectively.
During the company’s earnings call, Apple CEO Tim Cook blamed “foreign exchange headwinds” for the low sales of Apple’s most famous item, the iPhone, as a higher dollar has affected the company’s revenue, which comes mostly from international markets.
According to Bloomberg, smartphone sales fell 2.94% to $39.7 billion in the third quarter, falling just short of the $39.8 billion analysts expected.
Apple officials stated on the earnings call that the smartphone market in the United States will further slow down in the coming future.
The iPhone 14’s popularity has declined as Apple prepares to release the iPhone 15 Pro and Pro Max, which promise larger screen displays than prior versions, a titanium frame with thinner boarders surrounding the screen, and a quicker processor.
Though no official date has been announced, iPhones are typically released in early September, a few weeks before the fourth quarter finishes.