2022 was a disaster for all players in the new technologies industry. At the time of the balance sheet, Apple remains the best rated company in the world. The Trendforce analytics institute estimates the firm’s market cap at $2 trillion. Such a dizzying number would have made any other company happy, but a disappointment for the American giant: Lost 33% of its value in less than a year.
The AAPL stock was $179.47 on December 30, 2021, compared to just $129.61 a year later. Tim Cook and the company’s shareholders can take comfort in stating that Apple isn’t the only member of GAFAM in disarray. In a year, Google and Amazon lost 35% and 44% of their value, respectively. Trendforce experts attribute Apple’s weak numbers to several factors.
Weak iPhone 14 demand and China’s COVID outbreak explain Apple’s course
The iPhone 14 Pro and 14 Pro Max managed to seduce the public as soon as they were released. Demand was very high for Foxconn, the maker of these premium smartphones. Due to the restrictions imposed by the Chinese government to combat the COVID epidemic and the various waves of resignations that followed, the production capacity Zhengzhou plant down 30% in a quarter. As a result, the iPhone 14 Pro and 14 Pro Max have become rare and expensive, while the iPhone 14 and 14 Plus remain on the shelves, ostracized by customers around the world.
In financial terms, this means: less margin The sales volumes of high value-added products and affordable products are too low to close the gap. Company accountants are lowering their year-end forecasts, and the outlook for 2023 is not better. The workforce shortages Foxconn faces in China will continue, and may even worsen, according to Trendforce. In this context, it is said that Apple will change its strategy for the iPhone 15.
Source : 9TB5 Mac