14 DAY TRIAL // Apple’s problems worldwide have substantially affected the company’s market cap, and following the revised revenue guidance in early January, it has become the fourth most valuable firm in the US.
After previously becoming the first company worth $1 trillion, Apple declined significantly in the last couple of months, particularly due to slow iPhone sales and legal problems that eventually led to an injunction on iPhone sales in Germany and China.
On Friday, Apple recovered 3.9 percent to be worth $700.9 billion, but still remaining the fourth in the charts in a top concerning US companies. Google’s parent company Alphabet was placed third with $748 billion, while Microsoft and Amazon remained number one and number two thanks to 4.65 percent and 5.01 percent hikes.
Microsoft has a market cap of $782.4 billion, while Amazon is pretty close with $770.6 billion.
Apple’s decline
Apple’s CEO Tim Cook said earlier this week that one of the reasons the iPhone isn’t selling as well as anticipated is the trade tension between China and the United States.
“What I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy. We saw, as the quarter went on, things like traffic in our retail stores, traffic in our channel partner stores going down, the reports of the smartphone industry contracting,” he said.
On the other hand, the United States President Donald Trump says Apple has “gone up hundreds of percent since I’m president,” adding that the company is “going to be fine.”
“Don’t forget this, Apple makes their product in China, I told Tim Cook who is a friend of mine who I like a lot, make your product in the United States, build those beautiful plants that go on for miles it seems. Build those plants in the United States, I like that even better,” Trump said.
Analysts forecast a bigger drop in terms of Apple revenues in the coming quarters, especially as sales after the holiday season are projected to decline.