Apple Inc (NASDAQ:AAPL) is expected to relinquish its $3 trillion market valuation when US markets open today, with shares expected to open 2.5% lower at $186.3.
Despite rising profits and digital services clients surpassing one billion globally, the market appears spooked over falling revenues at the Silicon Valley behemoth.
The world’s most valuable company reported a 1% decrease in total revenue to $81.8 billion for the quarter ending in June, marking the third consecutive year-on-year decline.
However, these figures slightly surpassed Street forecasts of US$81.7 billion.
Underwhelming hardware sales also contributed to the tepid market reaction.
The most significant drop was seen in iPad sales, which plummeted by 20%, while iPhone sales dipped 2.4%. Wearables sales, however, managed to increase by 2.4%.
Apple became the first company ever to achieve a $3 trillion valuation in June at a 30-times price-to-earnings ratio, a substantial premium to its historical valuation.
The world’s next-largest company by market capitalisation, arch tech enemy Microsoft Corporation (NASDAQ:MSFT), is valued at around $2.43 trillion at a 34-time PE ratio.