Apple experiences a staggering $3 trillion decline in value due to a slowdown in iPhone sales

Apple’s position as the world’s only $3 trillion (£2.3 trillion) company was short-lived as it failed to impress Wall Street with its quarterly results.

Shares dropped nearly 4% in New York, reducing its market value to $2.89 trillion.

In June, Apple became the first company ever to reach the $3 trillion milestone during a broad tech rally driven by speculative enthusiasm for artificial intelligence.

Decline: IPhones, Macbooks, computers and iPads were a particular area of weakness for the company

The iPhone maker reported a 1% decrease in total revenue to £63.4 billion for the quarter ending in June, marking the third consecutive year-on-year decline.

IPhones, Macbooks, computers, and iPads were weak areas for the company, as revealed in its Thursday late-posted results.

Apple predicts a similarly stagnant performance in the upcoming quarter, causing concern among investors despite rising profits.

Ben Barringer, equity research analyst at investment management firm Quilter Cheviot, stated, “Apple is anticipating a similar decline in growth for the next quarter. Other tech giants have navigated the uncertain environment much more efficiently, making them more preferable to investors than Apple.”

Rival company Amazon saw a nearly 10% surge in shares following better-than-expected performance in its cloud business during the second quarter.

The online retail giant reported overall sales of £105 billion, an 11% increase, and projected revenues and profits that surpassed expectations. Amazon has been focused on cost-cutting measures this year, having eliminated 27,000 roles in 2023 alone.

‘The second quarter was a game-changing quarter for Amazon,’ said Michael Morton, an analyst at research firm SVB MoffettNathanson.