Apple's Market Value Plunges $500 Billion Amid Component Shortages

Apple's stock plummeted nearly 10 percent on Friday after the company released a disappointing forecast, citing shortages of key components as the driving force behind its struggles. The decline would mark the worst single-day performance for the stock since the pandemic-driven selloff in March 2020, wiping out nearly $500 billion from the market value of Apple.

The company's chief executive Tim Cook described the shortages as 'very significant' and said that Apple had limited options to resolve them. He stated that the company's buffer of stockpiled inventory was running low, leaving it unable to meet strong demand for iPhones and Macs due to processor shortages.

Apple's forecast for revenue growth fell short of Wall Street estimates, with a projected 9-11 percent increase in the current quarter compared to a predicted 12 percent. Softer growth in the services division also weighed on the company's results, raising concerns among investors given the strong sales of iPhones, which normally boost revenue from App Store purchases and services including Apple Music and Apple TV.