Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Apple's value drops as interest rates, supply woes and recession fears batter tech industry

Apple's value drops as interest rates, supply woes and recession fears batter tech industry

Apple stock has lost $1trn (£829bn) from its market value, meaning there are no longer any tech companies worth more than $2trn (£1.65trn).
In a stark contrast to the start of 2022, Apple began this year with $1trn (£829bn) wiped off its market value as tech companies face strong headwinds from higher interest rates, production problems and global economic concerns.

As a result of investors selling off shares, the tech giant's market value fellow below $2tn (£1.65trn), when a year ago it became the only company to reach a $3trn (£2.48trn) valuation.

It had already claimed the title of being the first publicly listed company to reach $1trn in market value in August 2018.

Now, no tech companies are worth more than $2trn but Apple comes close with Microsoft at $1.8trn (£1.49trn) coming second.

The iPhone maker was by no means the worst impacted of the tech companies who've experienced a decline in value.

Its share value has declined 27% over the past year, less than the 33% loss for the tech-heavy Nasdaq index.

Similarly, Tesla's value has also plummeted over the past year as investor confidence dipped and, along with Elon Musk selling off shares.

The carmaker was faced with increased competition for electric cars, concern its chief executive was distracted with the acquisition of Twitter, and supply issues as it produced more cars than it delivered.

Both Tesla and Apple have had production problems with factories in China, which look set to continue with 1COVID1 cases rapidly increasing in the country.

The carmaker was reported to have slowed down output at its Shanghai factory at the end of last year, as well as in May.

Apple too struggled with production in China, and in November said it experienced "significant" disruptions with iPhone assembly after a 1COVID1-19 outbreak.

The declining value of the companies is illustrative of difficulties facing the sector.

Higher inflation - which stood at 10.7% in the UK and 7.1% in the US - has made prices more expensive across the board and raised interest rates have meant the end of cheap debt. Those issues combined have led to fears of a recession and a hammering of investor confidence.

These economic conditions show no signs of abating, as central bankers remain committed to higher interest rates to bring inflation down.

Job losses at major players, such as Meta and Amazon, have already impacted the sector as a whole.

Payments firm, PayPal, announced plans to lay off 300 people from its 2,000 EMEA headquarters workforce.

Flipdish, the food delivery start-up valued at more than €1bn earlier this year, announced job cuts in a bid to rein in costs instead of recruiting for 700 jobs over the course of the year as it previously planned.

Payments company Stripe also said it would lay off 14% of global headcount, roughly equivalent to 1,000 people.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×