Apple Inc. (AAPL) Stock Lost $23B Since iPhone 6 Launch

Apple Inc. (NASDAQ:AAPL) shares are tanking in the wake of rising allegations about the buggy operating system update and the iPhone 6 Plus’ bending in pockets. Apple has lost a whopping $23 billion since the iPhone 6 was released on Sept. 19.

Apple Inc. (AAPL) Stock Lost $23B Since iPhone 6 Launch
Source: Pixabay

Apple commands massive impact on S&P 500

The stock closed down $3.88, or 3.8%, at $97.87 on Thursday, below the resistance of $100. Investors and traders are closely observing the $100 level because back in 2012, when shares fell below $100 (on a split-adjusted basis) they went into a reverse loop, declining 50%.

A day’s decline in Apple Inc. (NASDAQ:AAPL) stock is more than the entire market value of more than half of the individual companies in the S&P 500 Index, including big names such as Macy’s, Inc. (NYSE:M) and Chipotle Mexican Grill, Inc. (NYSE:CMG).

Additionally, Apple is the most valuable stock on S&P, which suggests that a 3% drop in share value will pressurize the entire market, similar to what was seen on Thursday. Every $1 decline in Apple stock will scrap approximately .68 in the S&P 500. This suggests that a drop of $3 takes the market down by 2 points, excluding the ripple effect on other tech companies related to the iPhone. The S&P 500 fell 25.59 points Thursday to 1972.71.

Losing image as well as share value

Although Apple Inc. (NASDAQ:AAPL) stock is still up by 23% this year compared to the S&P’s 7% gain, investors are not used to it tanking just days after the launch of a new device. The iPhone is the most important and ambitious product from Apple, contributing at least half of its stock price, according to

Some would say that the company has always held the top spot when it comes to quality, but this time its supremacy is in question. The general perception among Apple fans is that the company always offers best in class devices, and there were similar expectations about the iPhone 6 as well. However, with rising complaints about the vulnerability of the iPhone 6 Plus, which can supposedly be bent by someone’s bare hands or in a pocket, along with a fast-draining battery and faulty operating system, investor confidence seems to be shaking.

There have been issues with Apple Inc. (NASDAQ:AAPL) products before as well, when the iPhone used to lose connectivity due to its antenna design, but co-founder Steve Jobs was able to rectify the problem. But with a lot of eyes on Apple’s performance, it might be difficult to cover up these new issues, which are potent enough to deride and marginally grind down Apple’s image.