- Apple’s market cap has dropped $US190 billion in about five weeks, and it lost its $US1 trillion valuation on Monday.
- It took Apple nearly 30 years to reach a $US190 billion valuation after the company went public in 1980.
- The reason for the decline: A slew of analyst reports suggesting that iPhone unit sales could drop year-over-year as soon as the first quarter of 2019.
Apple’s stock took a beating on Monday. The iPhone maker’s share price was down more than 5% at the end of trading, taking its market cap below $US1 trillion at the close for the first time since it hit the milestone in August.
The reason for the battering: a slew of analyst reports suggesting iPhone unit sales could drop year-over-year as soon as the first quarter of 2019.
It was another low in a bad few weeks for Apple’s share price. After the firm’s stock hit a high of $US232 on October 3, with a value of $US1.16 trillion, it then lost just under $US190 billion from its market cap over the subsequent five or so weeks.That’s not far off the gross domestic product of Greece.
To put that into further perspective: It took Apple nearly 30 years to reach a valuation of $US190 billion. The company went public on December 12, 1980. Its $US190 billion valuation came in March 2010, according to Macrotrends.
The driver of the iPhone sales slump projected in bearish analyst reports is that Apple’s new $US749 phone, the lower-end iPhone XR, may not be the hot seller that Apple had hoped, and the company may be cutting orders for the device.
Apple is not the only tech stock to be hit in recent weeks.Amazon also lost its $US1 trillion valuation in October, while Facebook, Netflix, and Google have also slumped.