Apple's market value down by 50% after Sep 12 event

Apple's loss is bigger than the value of eBay Inc, Ford Motor Company or Target Corporation.

apple market value drop
People wait in line for the opening of the next generation Apple Store in San Francisco, California, US 21 May 2016 (Stephen Lam/Reuters)

Apple lost more than US$50bn from its market value after revealing the iPhone X and other new hardware products on 12 September. Apple's loss has been said bigger than the value of eBay Inc, Ford Motor Company or Target Corporation.

CNBC on Sunday released its FactSet data showing Apple shedding approximately US$50bn from its market value. A day before Apple released the iPhone X, iPhone 8, iPhone 8 Plus, Apple TV 4K and Apple Watch Series 3 and plunged its value to US$782.5bn, the California-based tech giant was priced on the market at US$834.9bn.

Also read: Chinese smartphone owners less interested in upgrading their phones, study reveals

Apple's worth remains immensely large despite the sudden decrease, even about US$100bn larger than Google's parent company, Alphabet.

Earlier this month, Loup Ventures investor and former Apple analyst Gene Munster told the publication that Apple's shares are likely to plummet around 5 to 10 per cent after the debut of the new iPhone models even if they are all received well.

"The simple reason is this: The stock's up 50-plus percent in the past year because investors have been anticipating the return to growth of the iPhone. As soon as that product comes out, people are going to shift their focus to the March and June quarters of next year," says Munster, adding "That's when the iPhone cycles are made or missed. So there's naturally going to be some people taking some profits."

In the meantime, it is expected that Apple will get back on its feet a couple of months from now, once all new products will begin shipping worldwide.

This article was first published on September 25, 2017
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