Beautiful Virgin Islands

Thursday, Oct 16, 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
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
French Political Turmoil Elevates Marine Le Pen as Rassemblement National Poised for Power
China Unveils Sweeping Rare Earth Export Controls to Shield ‘National Security’
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Australia Orders X to Block Murder Videos, Citing Online Safety and Public Exposure
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
×