Apple is starting the trading day on Tuesday stripped of its status as a trillion-dollar company after a rocky month on Wall Street that saw the iPhone maker lose $190 billion of its worth.
The iPhone maker is still the world’s most valuable publicly traded company, with a market capitalization of $921.41 billion. Shares of Apple started the day at $194.17, down more than 5 percent over concerns Apple’s new iPhones may not be getting a production boost.
Lumentum, one of the suppliers Apple uses for its facial recognition and augmented reality technology, said on Monday it had received a request from one of its largest suppliers to reduce its shipments, prompting concerns that the latest iPhones may not be such big sellers into the holiday months as investors had hoped. Although Lumentum did not name Apple, the iPhone maker is listed as its largest customer, according to the company’s annual filing.
“The latest iPhone product cycle has been losing steam with the Street now lacking confidence in the Apple growth story into 2019,” Daniel Ives, managing director of equity research at Wedbush Securities, told NBC News. “Cook and company need to get back their mojo with services and iPhone growth front and center," he said, referring to Apple's chief executive officer, Tim Cook.
Over the past five weeks, Apple has lost $190 billion in value.
During Apple’s fourth-quarter earnings call earlier this month, Cook said Apple would no longer report the number of units it has sold of any product in future earnings reports.
“This is a little bit like if you go to the market and you push your cart up to the cashier and she says or he says, ‘How many units do you have in there?’” Cook said. “It doesn’t matter a lot how many units there are in there in terms of the overall value of what’s in the cart.”
Wall Street reacted negatively to the news, which came amid reports the lower-cost $749 iPhone XR may not be meeting sales goals. However, many of Apple’s competitors, including Samsung, do not reveal unit sales in their earnings reports.
At least for now, the world no longer has any publicly traded companies worth one trillion dollars.
Apple reached the trillion-dollar milestone on Aug. 2 and was briefly joined one month later by Amazon.