Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Apple's value drops as interest rates, supply woes and recession fears batter tech industry

Apple's value drops as interest rates, supply woes and recession fears batter tech industry

Apple stock has lost $1trn (£829bn) from its market value, meaning there are no longer any tech companies worth more than $2trn (£1.65trn).
In a stark contrast to the start of 2022, Apple began this year with $1trn (£829bn) wiped off its market value as tech companies face strong headwinds from higher interest rates, production problems and global economic concerns.

As a result of investors selling off shares, the tech giant's market value fellow below $2tn (£1.65trn), when a year ago it became the only company to reach a $3trn (£2.48trn) valuation.

It had already claimed the title of being the first publicly listed company to reach $1trn in market value in August 2018.

Now, no tech companies are worth more than $2trn but Apple comes close with Microsoft at $1.8trn (£1.49trn) coming second.

The iPhone maker was by no means the worst impacted of the tech companies who've experienced a decline in value.

Its share value has declined 27% over the past year, less than the 33% loss for the tech-heavy Nasdaq index.

Similarly, Tesla's value has also plummeted over the past year as investor confidence dipped and, along with Elon Musk selling off shares.

The carmaker was faced with increased competition for electric cars, concern its chief executive was distracted with the acquisition of Twitter, and supply issues as it produced more cars than it delivered.

Both Tesla and Apple have had production problems with factories in China, which look set to continue with 1COVID1 cases rapidly increasing in the country.

The carmaker was reported to have slowed down output at its Shanghai factory at the end of last year, as well as in May.

Apple too struggled with production in China, and in November said it experienced "significant" disruptions with iPhone assembly after a 1COVID1-19 outbreak.

The declining value of the companies is illustrative of difficulties facing the sector.

Higher inflation - which stood at 10.7% in the UK and 7.1% in the US - has made prices more expensive across the board and raised interest rates have meant the end of cheap debt. Those issues combined have led to fears of a recession and a hammering of investor confidence.

These economic conditions show no signs of abating, as central bankers remain committed to higher interest rates to bring inflation down.

Job losses at major players, such as Meta and Amazon, have already impacted the sector as a whole.

Payments firm, PayPal, announced plans to lay off 300 people from its 2,000 EMEA headquarters workforce.

Flipdish, the food delivery start-up valued at more than €1bn earlier this year, announced job cuts in a bid to rein in costs instead of recruiting for 700 jobs over the course of the year as it previously planned.

Payments company Stripe also said it would lay off 14% of global headcount, roughly equivalent to 1,000 people.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×