Apple Inc’s stock market value shrank sharply on Tuesday following its steep drop last year, leaving it below $2 trillion for the first time since March 2021.
The sell-off came a year after the iPhone maker became the first company to reach the $3 trillion market capitalisation milestone.
Apple’s shares declined 3.7% to $125.07 after Exane BNP Paribas analyst Jerome Ramel downgraded the company to “neutral” from “outperform,” slashing his price target to $140 from $180, according to Refinitiv Eikon.
Also exacerbating investors’ worries that a slowing global economy and high inflation may be hurting demand for Apple devices, Nikkei reported, citing unnamed suppliers, that Apple has told suppliers to manufacture fewer parts for its ear buds, watches and laptops.
The drop in Apple’s share price put its market capitalisation at $1.99 trillion, just ahead of Microsoft Corp, valued at about $1.8 trillion.
Ramel cut his iPhone shipment targets for fiscal 2023 to 224 million units from 245 million units, reflecting supply chain issues from manufacturer Foxconn and consumers cutting back spending.
Published in The Express Tribune, January 5th, 2023.
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