Apple’s market valuation falls below $2 trillion as shares plummet 3% on first day of 2023 trading

Apple’s market shares dropped over three percent during Tuesday trading, leaving the tech giant’s valuation below $2trillion for the first time since last spring.

The iPhone manufacturer’s shares were down 3.74 percent, leaving the company at a share value of $130.20 and an overall valuation at $1.99trillion. The drop left the company at a 12-month valuation low on the first day of 2023 trading.

Tuesday’s decline came after a difficult holiday season for Apple, which saw shipments bogged down by COVID restrictions at its main iPhone manufacturing factory in China.

Valuation has also declined amidst growing drops in overall consumer confidence as the US economy remains on shaky footing following recent economic downturns. 

Apple CEO Tim Cook. The company’s valuation dropped below $2trillion for the first time since last May

Though Apple released the iPhone 14 in September, shipments for the latest phone were down 22 percent from initial projections in fourth quarter, according to TrendForce.

In response to slowdowns caused by the recent surge of COVID infections in China – Apple’s primary country of manufacture – the company has been attempting to cut costs by producing their products with fewer components, according to Nikkei.

Apple first crossed the $2trillion valuation mark in August 2020 in the throes of the pandemic, as sales of iPhones and laptops soared as customers supplied themselves for remote work and schooling. A year ago today, Apple was worth about $3trillion.

The tech giant is only the latest company to lose its $2trillion valuation – Microsoft also dropped below the mark earlier this year.

 Workers (pictured in August) line up to get tested for COVID-19 at the Foxconn factory in Wuhan in central China’s Hubei province. Workers at the Zhengzhou iPhone plant been under COVID-19 restrictions for weeks, and have taken to the streets over their working conditions

COVID-19 restriction protests (pictured) have broken out recently, in a rare display of government resistance in the Communist country 

A protest broke out near the Apple factory and the government ordered at five-day quarantine 

The downturn comes after reports Apple is planning to move parts of its production out of China after violent governmental protests delayed the company’s production – as CEO Tim Cook eyes up Vietnam and India as new hubs.

Apple has accelerated plans to leave Zhengzhou, China – where iPhone City is located – in recent weeks, a source told the Wall Street Journal.

COVID-19 protests and wage disputes have broken out in the city, which employs up to 300,000 workers, leaving Apple’s busiest time of year in shambles with production and delivery delays.

Consumers are facing the longest wait times in the iPhone’s 15-year history, with estimated ship dates being after Christmas, WSJ said. In addition, Apple’s fourth quarter productions are around 10million less than expected, with iPhone Pro and Pro Max being hit the hardest.

In November, the company issued a notice that iPhone backups could happen due to the health restrictions in Zhengzhou. It is now eyeing India and Vietnam to reduce its dependency on Taiwanese-based assemblers led by Foxconn Technology Group.

Insider claim: Apple could be developing a new, cheaper version of its wireless earbuds that will help it keep up with competitors, industry sources suggest. It has been rumoured that the tech giant is working on a product called ‘AirPods Lite’. Pictured are Apple’s AirPods Pro 2

To battle its rocky financial 2023 financial start, Apple could be developing a new, cheaper version of its wireless earbuds that will help it keep up with competitors, industry sources suggest.

It has been rumored that the tech giant is working on a product called ‘AirPods Lite’ amid fears that there will be a drop in demand for its third generation AirPods in 2023.

Few details have been shared – and the company has not commented on the claims – but it is expected that the cheaper earbuds would be priced somewhere below $129, which is what the second generation AirPods currently cost.

The technology has proved very popular among Apple users but it does not come cheap — and with no indication of a date for its fourth generation AirPods this year there is a gap for the company to potentially launch a new product.

WHAT NEW APPLE PRODUCTS HAVE GONE ON SALE?

iPhone 14 and iPhone 14 Plus

iPhone 14 and iPhone 14 Plus

The standard model retails for £849 and comes with a 6.1-inch screen, while the Plus costs £949 and has a 6.7-inch screen. 

They support satellite connectivity that will let users send satellite SOS messages if they’re caught in an emergency without service.

They also have technology that can detect when users are in a car crash and automatically call emergency services, thanks to a dual-core accelerometer that can detect G-force measurements when vehicles are hit.

They will be available in the colours midnight, starlight, blue, purple and red. 

iPhone 14 Pro and  iPhone 14 Pro Max

iPhone 14 Pro and iPhone 14 Pro Max

iPhone 14 Pro has a 6.1-inch screen (same as the standard model) and costs £1,099, while Pro Max has a 6.7-inch screen (same as the Plus) and costs a mammoth £1,199. 

They have more advanced cameras than the standard and Plus models, and a sophisticated pill-shaped notch at the top of the screen, called ‘Dynamic Island’.

Dynamic Island hides the front-facing camera but also changes size to show important alerts, notifications, and activities, blurring the line between hardware and software, according to Apple.

They also have satellite connectivity and car crash detection technology, and will be available in the colours deep purple, silver, gold, and space black.

Apple Watch Series 8 

Apple Watch Series 8

The £419 ($399) Apple Watch Series 8 has an Always-On display – meaning the screen shows a small amount of quickly glanceable information when it’s idle.

It also has a strong crack-resistant front crystal, a temperature sensor that provides estimates of when a female wearer is ovulating and the same crash detection technology as the iPhone 14.

The battery of the Series 8 can also go for longer – up to 36 hours from a single charge – than that of the SE 2, thanks to a low power mode. 

Apple Watch SE 2 

Apple Watch SE 2

Apple Watch SE 2 delivers some of the Series 8’s advanced features, including crash detection, at a lower price (starting from £259 or $249). 

It does have the ovulation feature, but it’s less comprehensive than on the Series 8.