The first trading session of the new year for Apple did not turn out to be a good one. Investors drove Apple’s market value below $2 trillion.
The loss comes just one year after Apple gained the title of the first U.S. company to reach $3 trillion. So, what caused the significant drop?
According to Axios, Apple notified several suppliers to build fewer parts for some of its devices, including AirPods, the Apple Watch, and MacBooks. Another problem for Apple is how rapid inflation and rising interest rates ended Big Tech’s 20-year run of growth. However, Apple was able to fare better than other tech companies, including Meta and Amazon.
For investors, many are playing it smart. They are in a waiting period. Investors are waiting to see Apple’s holiday quarter details and forecasts. Apple investors are also concerned about the company’s ability to meet the demand. Covid lockdowns and policy changes in China have impacted supply chains. However, Reuters is reporting the Foxconn iPhone plant is almost back to full production.
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