Apple loses $3trn value in iPhone sales slump

APPLE’S stay as the world’s only $3 trillion (£2.3 trillion) was shortlived after it failed to woo Wall Street with its quarterly results.

Shares dropped nearly 4pc yesterday in New York, giving it a market value of $2.89 trillion. In June, Apple became the first ever company to hit the $3 trillion landmark, amid a broad tech rally driven by speculative artificial intelligence enthusiasm.

The iPhone maker reported a 1pc decrease in total revenue to £63.4bn for the quarter ending in June, marking the third consecutive year-on-year decline. IPhones, Macbooks, computers and iPads were a particular area of weakness for the company, which posted its results late on Thursday.

Apple predicted a similarly flat performance in the coming quarter, spooking investors despite rising profits. Ben Barringer, equity research analyst at investment management firm Quilter Cheviot,

‘Investors prefer other tech giants’

said: ‘Apple is guiding to a similar decline in growth for the next quarter. Other tech giants have navigated the uncertain environment much more efficiently and as such for investors we prefer them over Apple.’

Rival Amazon saw shares surge close to 10pc yesterday after its cloud business posted a betterthan-expected performance in the second quarter.

The online retail giant said overall sales hit £105bn, up 11pc, and told Wall Street it expected its near-term revenues and profits to smash expectations. The Seattle-based firm has been on a mission to cut costs this year, slashing 27,000 roles in 2023 alone.

‘The second quarter was a gamechanging quarter for Amazon,’ said Michael Morton, analyst at research firm SVB MoffettNathanson.