US-based technology giant Apple became the first company to reach a market value of 3 trillion dollars in 2022. Apple, which came to the fore with the supply problem, came to the fore with the sharp market value decline.
Shares of Apple fell 3.7 percent to $125 after Exane BNP Paribas analyst Jerome Ramel downgraded the company’s rating to “neutral” from better performing and lowered its price target from $180 to $140. It was also stated that investors’ concerns that the slowing global economy and high inflation could reduce demand for Apple devices.
Ramel has reduced its iPhone shipment targets for the 2023 fiscal year from 245 million to 224 million units. However, as investors fret over consumer demand, analysts expect Apple to report an average of 1 percent decline in December quarter revenue in the coming weeks.
At its current stock price, the company’s valuation is still ahead of Microsoft, which is worth about $1.8 trillion. “Apple tends to gravitate towards high-end consumer device customers, but even this demographic group can be impacted by the high price of everything,” said Kim Forrest of Bokeh Capital Partners, stating that tech companies have suffered a decline due to the worldwide economic crisis.
The company has seen long-term shareholders’ gains even after a 27 percent drop last year. When co-founder Steve Jobs launched the iPhone in 2007, investors who bought and held Apple shares closed the day with a profit of over 4,000 percent, excluding dividends.