Apple Market Value Plummets by Almost Half a Trillion Dollars

Apple's market value is on track to plummet by nearly $500 billion after warning of supply shortages affecting its growth prospects.

The company's shares fell by nearly 10% on July 31, marking its worst day since the pandemic-driven market selloff in March 2020. This decline would erase almost half a trillion dollars from Apple's market capitalization and hand back the title of world's most valuable company to Nvidia.

The supply shortages are attributed to the intense demand for advanced chipmaking capacity and memory chips, triggered by the growing need for AI data centers. Apple has been relying on stockpiled inventory to mitigate the impact but admits that its reserves are running low.

Tim Cook described the supply shortages as 'very significant' during his final earnings call before handing over leadership to John Ternus in September and becoming executive chairman. Analysts warn that the slowdown in Apple's services business, which typically benefits from strong iPhone sales, could face additional pressure if the company raises iPhone prices with its next product lineup.