Apple stock loses $ 38 billion within 5 days
Ending the session on 9th July, Apple shares continue to fall 2%. This is the 5th consecutive decline and Apple shares fell 5.2% within 5 days. This made the market value of the company decrease about $ 38 billion. The current stock price of Apple is $ 120.07.
One of the biggest causes leading to this situation is that the Chinese stock market is collapsing. In less than 1 month, Chinese stock market has lost 4 trillion dollars. The fluctuation of stock market also makes many people face difficulties in financial situation, decline purchasing power and influence sales of high-tech manufacturers such as Apple.
Apple has 17.4% of revenue coming from the Chinese market. According to CEO Tim Cook, China could become the largest market for Apple. In the first 3 months of this year, both the iPhone 6 and iPhone 6 Plus has helped sales in China surpassing the US market.
Therefore, the collapse of the Chinese stock market and the instable economic situation of this country’s instability has a strong influence on revenue and profits of Apple. That makes investors nervous.
Besides, a recent report showed that sales of Apple Watch could drop 90% in two months. This makes investors very disappointed because this is a potential product of Apple.
But Apple still very optimistic and self-confident when ordering manufacturers about 85-90 million next generation iPhone. Besides, the company has put faith in the Chinese market and is considered the “gold” land.
Apple also is planning to expand its presence in China, by doubling the number of stores in this market.
Facing the current situation, investors believe that Apple’s stock will continue to decrease until the Chinese stock market stabilizes. And the launch of new products in September could cause Apple’s stock price go up.
The increase or decrease of the share price in a short time when having a special event is very normal thing. For large companies such as Apple, value stocks just having small changes also makes investors lose much money. But in general, Apple shares had incredible growth since its launch. Apple remains one of the leading technology companies today and leads smartphone market in the world.