Prime Highlights:

• Apple’s market capitalization dropped by nearly $640 billion over three days.​
• The stock dipped due to investor fears regarding iPhone sales and regulations.​

Key Facts:

• Apple’s stock dropped by about 12% last week.​
• The company can expect to be the target of antitrust investigations in most countries.​

Key Background

Apple Inc., the technology giant behind the iPhone and Mac brands, has had its market capitalization nose-dive sharply, losing nearly $640 billion in three days. The reason is largely due to heightened investor concerns about demand for iPhones and rising regulatory headaches.

Apple’s share price has fallen by a whopping 12% in the past seven days, one of the largest falls in recent years. The fall is due to the news of a fall in iPhone sales, particularly in the larger markets of China and Europe. The market for smartphones is saturated, and added competition from other companies has also seen the demand fall.

Apart from this, Apple is facing antitrust scrutiny across many countries such as the United States and European Union countries. Apple’s App Store procedures and app distributing monopoly on its platforms are subject to regulators’ scrutiny. Apple has faced accusations of suppressing competition and harming consumers by forcing developers to pay more than necessary and restricting the channels app distribution occurs.

These regulatory hurdles have been generating fear on the investor front regarding the possibility of fines and the probability of coercive changes in Apple’s business model. These incidents can have long-term impacts on the company’s profit margins and revenue streams. Apple has, as a reaction to these incidents, stated that it believes in complying with rules and developing a competitive and fair market environment. The firm reaffirms its dedication to providing quality superior products and services worldwide.