For several years, Apple's stock wasa real safe haven for investors, and the Tech giant has even reached a valuation of $3,000 billion during the year 2022. But in recent months, confidence has soared.
Why is Apple stock falling so much?
The development is such that the stock reached $126.04 last week, its lowest level in 18 months. So what exactly is going on? While it is sometimes difficult to describe the thoughts and analyzes of financial players, several negative announcements have punctuated the news from the Apple brand in recent months.
It is especiallyin Chinawhere the Cupertino company produces most of its iPhones that are struggling. Thus, workers at the Foxconn factory in Zhengzhou demonstrated to denounce their working conditions, which seriously disrupted the manufacturing of Apple smartphones at a fateful moment: the end-of-year holidays.
Then, the Chinese government decided to review its policy on Covid, which contributed to strengthening the epidemic. This has once again greatly disrupted production at Foxconn, which is struggling to return to its usual pace.
A difficult start to the year?
Moreover, things should not necessarily improve at the start of 2023, if we refer to data from TrendForce analysts. The latter estimate that the slowdown in deliveries of Apple smartphones will continue in the coming months. They therefore forecast 47 million iPhone shipments for the first quarter, whereas they previously expected 52 million.
Taken together, this informationdo not really reassure investors. From then on, Apple's stock struggled to regain some color, and it was around 130 dollars this Friday at the close. Of course, the Tech giant is far from being defeated, and the idea is now to get out of this Chinese dependence, by investing in countries likeIndia and Vietnam.
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By : Keleops AG
