It took 12 trading sessions for tech giant Apple to drop more than 20% from its record high, decreasing by half a trillion in market capitalization. Before that dramatic decline, Apple rose by 21.4% in August. However, at the beginning of the current month, on September 2, the world’s leading company has dipped 22.6% from its intraday record high of $137.98. Significantly, the tech giant eased by approximately $532 billion in market cap. But what caused this sharp decline?
Apple’s dramatic fall followed its massive gain in August ahead of its 4-for-1 split. The steep falls also came as the giant’s recent products event did not seem attractive for its users.
The company did not report any new iPhones
Besides, the American multinational technology company reported some recent hardware and some updates on September 15, Tuesday. Such as Apple Watch Series 6, the iPad Air, a fitness service, and service bundles called Apple One. However, it has to be mentioned that the company did not report any new iPhones.
According to the Senior Technology research analyst Toni Sacconaghi, the event is relatively underwhelming. He said he knows that it might be challenging to move users from competitive music, video, or gaming services where they are entrenched. Technology analyst added that Apple should look to more creatively bundle its hardware + services into combined subscription bundles.
Also, Nasdaq Composite has decreased by more than 10% from its record high. Investors claim that the fall in tech giants is lead by concerns over lofty valuations. These have boosted dramatically in a short-time period this year.
Loup Venture’s Gene Munster published on September 15, Tuesday that the giant can cope with it. The reason is that the company is producing the world’s best products and has exceptional product price premium relative to value.