Apple’s market cap falls below $400 billion for first time since January 2012
Apple’s market cap dropped below $400 billion in early trading on Monday. The market cap, which assesses Apple’s total value of issued shares, first passed $400 billion in the month of January last year. The Cupertino giant’s market cap hit a record $392.2 billion when the iPhone 4S launched in 2011. From then onwards until recently, it’s been a dream run for the company. It quickly rose to $500 billion in February last year and then hit the $650 billion mark in September 2012.
Apple’s market cap and stock has dipped in recent months since the iPhone 5 was launched. Investors are a worried lot about the company’s profit margin, upcoming products and innovation, and an overabundance of cash. The effective value of Apple’s non-cash operations seems low at $260 billion compared to their $140 billion in cash reserves. Google’s market cap on the other hand is now at $268.44 billion, with just over $45 billion in cash.
Apple is currently looking at new product lines to increase its market presence. The two most expected products are television and a smartwatch running on their iOS mobile platform. It is imminent that Apple will be releasing a new product soon, but it remains to be seen how the market reacts to it.
Apple’s market cap rose again and sat at $420.5 billion at the time of this writing.
Salman Ravoof is a freelance writer, a mechanical engineer and an avid science and technology enthusiast. He likes creativity and is a great fan of fantasy and sci-fi genre. When not busy, he revels in experimenting and spends most of his time pondering about the existence of reality.
5 March, 2013