Apple’s value drops as interest rates, supply woes and recession fears batter tech industry | Business News

In stark contrast to the start of 2022, Apple began the year with $1trn (£829bn) off its market value as tech companies are hit hard by high interest rates, productivity issues and global economic concerns. .

As a result of investors selling shares, the tech giant’s market value fell below $2tn (£1.65trn), after becoming the only company to reach a $3trn (£2.48trn) valuation a year ago.

It already claimed to be the first publicly listed company to reach $1trn in market value in August 2018.

Now, none of the tech companies are over $2trn but apple Microsoft comes a close second at $1.8trn (£1.49trn).

The iPhone maker has by no means been the hardest hit among tech companies that have experienced a devaluation.

Its share price has fallen 27 percent over the past year, less than the 33 percent loss of the tech-heavy Nasdaq index.

Likewise, Tesla’s There is also value pLummed Over the past year when investor confidence has waned and with Elon Musk Sale of shares.

The automaker was facing increasing competition for electric cars, its chief executive was upset by the Twitter acquisition, and Supply issues Because it produced more cars than it delivered.

Both Tesla and Apple are facing production issues with factories in China, which look set to continue with the country’s rapidly increasing number of COVID cases.

The carmaker was reported to have reduced production at its Shanghai factory late last year and in May.

Apple also struggled with production in China, and said in November that it faced “significant” bottlenecks iPhone assembly After the COVID-19 outbreak.

The declining value of the companies reflects the difficulties faced by the sector.

High inflation – on which was standing. 10.7 percent in the UK And 7.1 percent in the US – has made prices more expensive across the board and rising interest rates mean the end of cheap credit. These issues have combined to stoke recession fears and hurt investor confidence.

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

Disadvantages of employment Major players like Meta and Amazon, have already impacted the sector as a whole.

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

Flipdish, the food delivery startup valued at more than €1bn earlier this year, announced job cuts to rein in costs instead of hiring 700 jobs during the year as it had previously planned. .

Payments company Stripe also said it accounts for about 1,000 people, or 14 percent of its global headcount.

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