«A rotten Apple»: Apple triggered a collapse on the U.S. stock exchanges

© AP Photo / Richard DrewФинансовый specialist of the new York stock exchange during operation.«A rotten Apple»: Apple triggered a collapse on the U.S. stock exchanges© AP Photo / Richard Drew

Us stock indexes are going down because of the collapse in shares of major technology companies whose market capitalization falls along with the demand for high-tech products. At the head of the rockslide — and Apple is forcing suppliers of components for «Apple» devices to reduce production volumes. When technogiant pushed the world economy into the abyss of a new global crisis — in the material RIA Novosti.

Wake Up, Neo

Comprehensive economic crisis caused by the manufacturers of smartphones and computer equipment, sounds fantastic. But dry statistics testifies of the reality of such a scenario.

According to IHS, Markit, in 2016, the number of active smartphones worldwide reached four billion units. Experts of the research company argued that by 2020, this figure will rise to six billion, that is, for every four inhabitants of the planet will have three smartphones.

There is therefore nothing surprising in the fact that the devices themselves, as well as technology associated with them, provide a record capitalization of the producers.

In early August, Apple became the first company in the world whose market capitalization exceeded one trillion dollars. A month later, pulled up, and the world’s largest online retailer and service provider in cloud computing Amazon’s Jeff Bezos.

The excitement of investors has resulted in a market bubble which is now blown. Most of all fell securities the so-called conglomerate FAANG (Facebook, Apple, Amazon, Netflix, Google).

At the time of writing shares of Facebook have lost 39.5 percent of the maximum value over 52 weeks, Apple is 20.5%, Amazon was 25.4%, Netflix — 35,6%, Alphabet (owned by Google) to 20.3%. Total: minus a trillion dollars of capitalization.

The collapse caused a series of unexpected news. The Manager and the owner of Amazon Jeff Bezos said that «sooner or later» his company goes bankrupt.

Not pleased investors and The Wall Street Journal that Apple has decided to cut production of the new iPhones. Initial plans to release on the market until February 2019 70 million iPhones XR cut by a third.

Serious losses were suffered not only technology companies with the highest capitalization. Fell sharply on the annual highs and shares of manufacturers of electronic components.

Thus, the paper is one of the leaders in the graphics market NVIDIA has lost 46.8 per cent. This is comparable to how cheaper energy company PG&E, whose production capacity was in the midst of unprecedented forest fires in California.

Among the outsiders, and a direct competitor to the NVIDIA — AMD minus of 27.45%. Similar rates have Qualcomm, who lost around 25.87% of capitalization.

One of the reasons why NVIDIA has suffered more than competitors — the company bid on the production of hardware facilities for the production of cryptocurrency.

According to Susquehanna analyst Christopher Rolland, a quarterly revenue NVIDIA from cryptobytes fell by about 100 million. The expert expects that in the third quarter of this year revenue in this segment will be close to zero. So the actual profit at all will be negative.

The queue for losses

Who is at risk to get to this list the following, easy to guess. If you take the same rate of decline in the value of shares from the high of the last 52 weeks, the «successes» of world leader in the production of Intel processors also seem to be very depressing.

Now Intel lost 16,54% of capitalization. With this data at the time when the market did not have time to fully respond to published in the media insider information.

In mid-November, authoritative site DigiTimes reported citing industry sources that in the fourth quarter, Intel plans to cut production of processors for the retail market quarter, from eight to six million units.
© Photo : IntelУпаковка for CPU Core ninth-generation Intel«A rotten Apple»: Apple triggered a collapse on the U.S. stock exchanges© Photo : IntelУпаковка for CPU Core ninth-generation Intel