Two of the largest heavyweights in the sector lost more value than any other firm before them in a year defined by economic downturns and layoffs hitting the tech sector. Amazon, and now Apple. The combined valuation of the two businesses has decreased by around $2 trillion in the past 12 months. The recent decline in Amazon and Apple’s stock prices would be more than the combined GDPs of Sweden, Switzerland, Saudi Arabia, and Argentina if they were nations.
According to reports from Axios and other media outlets, Apple’s recent valuation decline is a sharp departure from the beginning of 2022, when the iPhone manufacturer temporarily became the first business in history to surpass the coveted $3 trillion valuation bar.
Apple Is No Longer Valued At $2 Trillion
The company’s already open wound was sliced open on Tuesday after a new report suggested that it internally anticipates lower demand for its gadgets and gizmos this year, even though pandemic disruptions in China, supply chain constraints, and rising inflation all harmed the company over the course of the year. Apple’s shares fell by more than 4% as a result of the accompanying investor hysteria. The end of 2022 was undoubtedly bumpy for Apple, despite the company’s reputation for navigating economic difficulties that leave many of its rivals fighting to stay afloat.
Covid- Foxconn’s “iPhone City” factory in Zhengzhou experienced 19 illnesses, which caused work stoppages and a consequent drop in output. Meanwhile, angry responses in China to the nation’s strict pandemic prevention strategy sparked widespread demonstrations that further derailed its preparations. Together, these issues caused sharp drops in the sale of Apple’s prized product: the iPhone. According to Trednforce research, iPhone shipments fell by a startling 22% in the December quarter.