Apple had to fight on several fronts this year: From an economic perspective, major events such as the war in Ukraine caused deep distortions in the energy and currency markets and significantly consumption. In addition, the corona pandemic has caused production problems in China – this was particularly visible with the iPhone 14 Pro and Pro Max, especially at Christmas, which is important for Apple. Leading producer Foxconn had to drastically cut production for weeks due to the corona pandemic – worker protests also caused further hardship. The iPhone 14 Pro and Pro Max have barely been available since early December.
Apple is now trying to diversify the production chain as much as possible in order to be able to react to failures – nevertheless, various analysts expect the corona pandemic in China to worsen further due to the abandonment of the zero-Covid strategy. Consequently, further delivery difficulties are to be expected in the coming months.
Many tech companies are hit hard
However, the economic environment affects many technology companies: for example, Microsoft shares lost almost 25% in value in 2022 – Google even lost more than 35%. Meta (formerly Facebook) struggled not only with the tough market in 2022, but also with local issues like the Metaverse which got off to a bad start – hence the stock lost almost 65% in 2022. The stock price from Intel fell by just under 2022 50 percent, AMD by 55 percent.
Apple is just a two trillion dollar company
In one year, Apple’s market capitalization fell by $1 trillion. Today, the Cupertino-based company is worth just over $2 trillion. The share price fell just over 30% in 2022:
Many analysts do not expect Apple’s stock price to recover significantly in the first half of 2023 due to possible delivery issues. For the current Christmas quarter, Apple has already warned customers and investors that ongoing delivery issues and a problematic currency market will severely affect Apple’s sales.