Earlier this year it was announced that Apple had become the first ever U.S company to be valued at $1 trillion dollars. Reflective articles of the company’s journey from inception to where it was now had flooded the internet. The world was reminded once more of the visionary leadership of Apple Founder Steve jobs that had played a major role in the company’s revival and reposition. However, news today says that Apple is no longer worth $1 trillion dollars.
How did it happen? Well here’s what we know.
The company’s slump of worth to a value of just hundreds billions of dollars has been as a result of the ripple effect of the negative press the company has been enjoying in recent weeks. The company which had already begun to feel the pressure of the market when it announced changes of how it would report its quarterly sales, has had further pressure mounted on them with latest news report regarding the latest iPhone.
A report by Nikkei Asian Review which is a large financial publication out of Japan made claims that the demand for Apple’s latest release, the iPhone XR has been lower than it had envisaged. In the wake of the news, stock prices of Fixconn, Pegatron, Largan Precision, Flexium Interconnect, and Ac Technologies have all entered in decline. Reports say that Apple had supposedly halted additional production lines of the iPhone XR.
Apple had earlier on Thursday made an announcement that it would no longer reveal how many devices it sold in its quarterly reports. Despite Apple’s argument of it services offered to be a more accurate assessment of the company’s welfare, the lack of transparency that has been attached to the move not to has given an indication that the company’s product sales were already in a decline.
Regardless of the decline in unit sales, the company still has its revenue up which it has been able to achieve with the constant rising prices of its devices.