Thursday, February 9, 2023

Apple shares are at their lowest price in years and are already worth 30% less than at the beginning of 2022: what are the reasons?

Apple is typically a safe value in the face of market volatility, but its shares experienced a dark month of December, ending the year shedding a third of its market capitalization.

At the end of the stock market session in the United States on Wednesday, December 28, Apple shares have reached their lowest price of 2022 with $126.04, This is a drop of $4 from its value the day before.

So far in 2022, Apple has lost over 30% of its stock market value, Its shares marked their highest price in the first trading session of the year on January 3, when they were trading at $182.01, about $56 higher.

The US technology company that managed more than $3 trillion in January for the first time in a company’s history today has Market capitalization barely exceeds $2 trillionSo a third of its value is left on the markets in 2022, which is 1 trillion.

December is usually the busiest period for Apple’s sales, the quarter in which it usually receives the most revenue thanks to the presentation of its new iPhone 14 in September and the shopping Christmas campaign, which is the most important of the year.

The reason for its decline in the markets in recent weeks The difficulties that Apple is having to meet the demand for the iPhone 14 Pro, which is higher than expected, but which is actually due to production problems of its suppliers. Apple has already had to admit that the issue will cause more Christmas orders to be delayed.

Taiwan Foxconn Apple is in charge of assembling the iPhone 14 Pro at its Zhengzhou plant in China, where about 200,000 people work. Over the past 2 months, the COVID-19 outbreak affecting the factory has caused a shortage of workers at its facilities, as well as protests by workers over their conditions and delays in their wages.

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Despite the fact that China has already reversed its zero-covid policy, infections have increased even more in the last 2 weeks across the Asian country, so Foxconn has not been able to produce more than 70 percent of its full capacityAs analyst Trendforce explains.

This analyst also estimates that the final number of iPhone 14 manufactured in 2022 will be 78.1 million units, which is lower than initial forecasts, and that The total volume of smartphones manufactured in the first quarter of 2023 will be down by 22% for this year.

Apple is slowly taking steps to reduce its reliance on Foxconn and China due to recent volatility in the supply chain, instead betting on countries like India and Vietnam for assembly, though the process is slow and It will take many years to complete.

The company has decided not only to choose Foxconn for the assembly of its premium iPhones next year, but also Split production between it and another company, LuxshareAlthough it will also manufacture it in China.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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