Apple forfeits richest company in the world tag as share price slumps
Investors are taking an increasingly pessimistic view of Apple over fears that the tech titan may have ‘lost its mojo’ amidst reports of fewer iPhone shipments and an absence of a new iPad model over the summer.
Apple’s shares continued their descent yesterday with an additional six percent slide to $402, its worst result since December 2011 and sufficient to knock the firm off its perch as most valuable company in the world with a total valuation of $378bn – less than the $384bn valuation of Exxon Mobil.
Apple reached its zenith last September when its share briefly surpassed $700 amidst the hype surrounding the iPhone 5 launch but this swiftly dwindled.
Pessimism has been building following a report from supplier Cirrus Logic, which manufactures parts for the iPhone and iPad, which forecast a ‘decreased forecast for a high-volume product’.
Morgan Stanley has also trimmed its forecast shipments of iPhones in the second quarter by 10 percent to 33m units, well below rival Samsung which shipped 70m over the same period.