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After the tech giant Apple made the headlines in August becoming the first US company (and the second largest in the world), the group had a market capitalization of $ 1 trillion. the media is now struggling to report negative trends in its value and continued decline.
The Cupertino company peaked at $ 1 trillion on Aug. 2, 2018 and two months later, Oct. 3, hit a record $ 1.1 trillion. dollar. However, his actions gradually began to become cheaper. Apple enters the month of November with a market capitalization of $ 1,055 billion. dollar, and so far its value has dropped to $ 817.5 billion.
On the record $ 1.1 trillion. dollar so far, the company has cleared nearly $ 300 billion of its capitalization.
But why
On this logical line comes the next index of poor results. In recent years, Apple has decided to react to the slowdown in the mobile phone market with rising product prices. This has allowed him to maintain a high income, but the question is how long will this formula produce positive results? "I think the real concern for investors is how long they can keep," said CFRA badyst Angelo Zino. The cheapest phone of the brand is sold for about $ 750, for example.
Analysts believe that the future of companies like Apple should also grow, given the fact that the smartphone market is expected to continue to contract. In the case of the Cupertino giant, there are services such as ApplePay, AppleMusic and AppStore, whose hope is to become the next engine of growth, says the BBC. The goal of the company is to obtain revenues of about 50 billion dollars by 2020. The ambitions of the giant also go in the direction of the health industry and the cinema, where the plans are even more vague. All this makes investors so far unconvinced of the company's ability to make this sudden turnaround.
"If we know that sales of iPhone models will be equal or down and that there is nothing else to compensate for that, of course, there is what worry, "said Caroline Milanesey, an badyst at Creative Strategies, a market research company cited by the British edition.
However, she points out that it is still too early to draw conclusions. Milansei explains that it would be more worrying to find that after a year, the services sector has not yet taken the upward curve expected by badysts.
Last but not least, the geopolitical problem between the United States and China. The collision between the two countries affects the entire technology sector, including a giant like Apple. The positioning of the company is influenced by currency fluctuations and rising interest rates. In addition, it should be noted that the iPhone manufacturer has its own bases in China.
tags: apple | iPhone | market capitalization
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