Apple's Market Cap Is Still High Despite Shedding $724 Billion
It is a basic business law that different products must go through different lifecycles. It is the job of the leaders to create new products and new opportunities before the core product can decline.
In the case of Apple, its core product was introduced around 15 years ago - Through that time, it has done really well to squeeze the juice of the iPhone (main product). With the introduction of the latest iPhone model, it seems that the product is now showing signs of decline. There are numerous reports which suggest that people are less interested in the newer model!
A quick look at the market cap of Apple makes it all very clear - Around $724 billion (USD) has been taken out of Apple's market cap, which was once standing at around $2.94 trillion (USD).
A Drop In Apple's Market Cap Is A Buying Opportunity?
The current market cap of Apple stock is around $2.22 trillion (USD), which makes it one of the most valuable tech companies in the USA and all over the world! This also begs the question if it is a good idea to buy Apple at current levels or not!
A simple answer to that question lies in the growth of the company - If it can manage to bring back the double-digit growth, then yes, Apple will be a buy!
However, the chances of that happening are very slim, and experts are even forecasting that Apple's revenue will start to decline. There are numerous reasons for this, such as product lifecycle, poor economic conditions, and lower demand for Apple's services and hardware.
In the past, Apple's stock price and its revenue growth were really bullish... In fact, the company increased its revenue at a staggering rate of 15.5%/year between 2010 - 2020. However, its revenue in 2019 actually dropped by 2.2%, and by 2021, the revenue was down by 33.4%.
With numbers like these, it has become apparent that Apple will have to introduce a new product or do something new to bring back the original double-digit growth!