Flop iPhones Cause Apple to Lose $446 Billion in 3 Months

Apple has lost hundreds of billions in just 3 months as the tech conglomerate’s capital stock lost significant value.

The total reduction in market capitalization – that is somewhere around $452 billion – also includes tens of billions of dollars that the company lost just this Thursday.

The stocks fell by 39.1, bringing the market cap as low as $674 billion. According to reports, the total losses are more than the individual value of 496 members of S&P 500 –  including Facebook.

The four remaining members are the only ones with market caps higher than Apple’s recent loss, including companies like Microsoft, Alphabet, Amazon, and Berkshire Hathaway.

Apple already issued warning letters to its investors to prepare for its “biggest miss in years”, according to an analyst. The company took criticism from Wall Street, with one analyst saying that Apple’s share decline “raises more questions than answers”.

According to the American company’s CEO, Tim Cook, the loss came after declining sales of iPhone’s in the recent fiscal year, and can also be attributed to China – one of the biggest Apple product markets – and its weakening economy.

To put things into perspective, CNBC compared Apple’s loss to other companies and their financial outlooks. The $446 billion loss is more than three times the size of McDonald’s and more than five times that of Costco.

At present, the company is readily losing its share value. Apple’s stock on Thursday closed at $142.19 per share, at a 10 percent lower rate.

  • That’s what overconfidence does to you. They thought they’d get away with charging obscene amount of money to their loyal customers, without knowing that Customers today are not as stupid they were years ago. They would still buy their products, but would not necessarily prefer them over others.

    • Actually two or three things are at play here: 1) the Chinese economy is slowing down due the trade war with the US so demand from China, which is the largest market for smartphones in the world, is down 2) Smartphones aren’t getting better by leaps and bounds anymore. The great leaps forward of the past are behind us and now it’s just incremental improvements. So people don’t see the need to upgrade to newer models. 3) Smartphones used to be subsidized by carriers in the US but not anymore. So people are hesitant to spend on high end phones over there because they feel the cost of it more than they used to.

      • Chinese are smart people… they don’t want to spend this huge amont on Apple. They would prefer to pay for their flat mortgage instead of this over rated and expensive phone.

        • China is one of the largest markets in the world for Apple and is the largest market in the world for smartphones as a whole. So what you are saying is untrue. The Chinese are susceptible to the same marketing other people are. They care about snob value as much as anyone else.

      • Plus the stock market of USA is also in slump situation, the share prices of all major companies went down because of this slump.

  • The company didn’t lose tens of billions. It’s the stock value that went down. When will propakistani improve its standards?

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