Apple Stock lost $200 billion or 6% in stock value after the Chinese government banned its employees from owning an Apple iPhone. This came days before the new iPhone 15 was launched on Tuesday. To fuel the fire, China announced after the iPhone range launch that they have security concerns, causing the stock to fall another 1%. Apple hopes the launch should boost stock prices, but will it be enough to recover the 7% loss? Is it a good time to buy Apple stock?
Apple’s new iPhone showcase, ‘Wonderlust,’ unveiled new hardware, including four new iPhone 15 and Apple Watch models. All come with new standardised USB-C charging ports.
“iPhone events typically generate significant buzz and anticipation, leading to a surge in sales. This, in turn, should boost stock prices for shareholders in the short-term,” Nigel Green, CEO and founder of deVere Group, a leading independent financial advisory and fintech, predicted.
He went on to say that he doesn’t expect it to be enough to recover its total stock market valuation, which fell by more than 6%, or almost $200 billion in two days last week.
The stock plummet was not necessarily just caused by the Chinese Government’s ban on employees and their security concerns but could also be the result of rival Mobile maker Huawei’s launch of the Huawei Mate 60. This and the fact that Apple has had three consecutive quarters of declining sales due to a tumultuous market. With China’s struggling economy and rising production costs, Apple has recently moved assembly lines to India and Vietnam.
Savvy investors could use the stock fall as a buying opportunity to get Premium stock at lower prices. Apple usually increases revenue several months after launch when 100 million iPhone owners’ contracts are renewed. Apple has vast capital and expertise and dominates the market. This and its resilient adaptability have made it the largest company globally and will continue for many years. Apple stock is slowly on the rebound and has currently risen almost one percent as of yesterday.
As always, it is vital to have a diversified portfolio when investing to mitigate risk and losses.