Apple – the world’s most valuable company – saw its market cap decline by more than US$34.9bn yesterday and today the company’s market capitalisation is standing at US$506bn, down from the US$705bn it peaked at in September.
The US$34.9bn decline was the worst single-day decline the company had suffered in nearly four years.
At the time of writing, Apple’s market cap stood at US$506bn and shares were trading at US$528.28 a share, down about US$4 on yesterday.
There has been much discussion around whether Apple’s stock has been overpriced but the consensus is the company is in rude health, is cash rich and trading at 12 times its earnings.
Various theories are being put forward as to what influenced the decline yesterday, with reports from Asia that there is likely to be a 20pc quarterly decline in the amount of parts being ordered by Apple being the likely culprit.
In addition, IDC has ranked Apple at No 6 in the Chinese smartphone market where it is competing against Samsung, Huawei, Lenovo, Coolpad and ZTE in the local market.