Why did APPLE stock drop?

apple company shares got a drop

This leaflet of information is about the dropping of STOCKS. Drop in stocks, not of a random company but a trillion-dollar company named APPLE. No layman or even rich people could afford to buy its shares. Only billionaires can take a chance to have their shares. So why did Apple stock drop? This company is one of the top five biggest companies of all time on the whole planet. But what we are hearing here is DROP IN THE SHARES OF APPLE. In this blog, we’ll try to expose this shocking news.

Reasons behind every drop of Shares of any company

The following are the reasons for dropping off a company’s shares;

  • Earnings report
  • Economic conditions
  • Market sentiments
  • Trends
  • Competition
  • Currency fluctuations

These are the reasons for every company’s declining shares. But when we talk about APPLE its supremacy is so much. So let’s find out why Apple stock drop. Even some of the reasons automatically destroy when we say APPLE. You can have an idea of APPLE’s supremacy by comparing it with NIKE. NIKE is one of the most popular brands in the world having billions of dollars of worth. It is ranked 327th in the world, could you imagine? And half of the people on Earth don’t even know the other 326 brand names. Still, APPLE falls in the top 10 biggest companies in the world.

apple company logo on a glass

Why is APPLE stock dropping?

  • APPLE lost $42 billion in a deal with Broadcom. Broadcom is a company that includes data center networking and storage. This company has mainstream software focused on automation. APPLE lost its billion dollars in a deal with Broadcom to develop 5G radio frequency components that might have further reshaped APPLE’S supply chain.
  • US debt ceiling negotiations have also contributed to the share price drop. It resulted in wider market turbulence rather than APPLE-specific concerns.
  • The bad Broadcom deal resulted in weak iPhone sales. These risks may be termed temporary but seem to affect APPLE’S long-term outlook.
  • Production problems in Chinese factories are putting downward pressure on stock prices.

Production Problems

Why are APPLE’S shares down? Without a product to sell APPLE cannot make up a revenue of increasing shares prices. One of the biggest tech giants is facing production issues for iPhone manufacturing.

iPhone manufacturing issues

The biggest product that APPLE is proud of is its iPhone. But in recent times APPLE has been facing hindrances in its supply chain of iPhone. The reason behind this resistance is the Chinese companies. We all know the tech war between the two biggest tech countries in the world. In recent years CHINA has taken strict actions against the US regarding technology. Other than the egoistic tech wars CHINA has played some devastating role during and after the pandemic. Although most of the world has eased restrictions because of the pandemic CHINA didn’t. The Foxconn factory in Zhengzhou had been unable to meet its production goals. Which was the consequence of the worker unrest issues over payments. Since this factory is where APPLE produces more iPhones there has been a shortfall of the product.

Results

From the above monologue, we can conclude the reasons. We could be able to conclude a response for why APPLE stock dropped today. Even though APPLE is losing its market value as discussed earlier, APPLE is still putting its efforts into comeback. Recently on Oct 27, APPLE announced revenue of $90.1 billion for the fourth quarter of 2022. It’s a record in itself.

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