Apple suffers major setback: The multi-billion euro fine imposed by the EU Commission against the US corporation is also having a significant impact on the stock price.

Apple stock: Surprising plunge after EU ruling The stock plummeted 3 percent at the start of the week. This continues the downward trend of the stock, which has already lost almost 8 percent of its market value since the beginning of the year. Just before the start of regular trading on Wall Street today, Apple is once again under pressure. According to media reports, the company is struggling with declining sales of its cash cow number one, the iPhone. Investors responded to the news with further sales, further increasing the losses.

Apparently, the iPhone has sold significantly worse in the first weeks of this year, especially in China. According to media reports citing industry analysis, there has been a decrease of almost a quarter compared to the same period last year. In the meantime, the competition in the Far East is benefiting: Huawei has apparently been able to expand its sales by 64 percent at the same time.

Eternal dispute with Spotify This would be the second negative news in 48 hours. The aforementioned competition fine that Apple is supposed to pay in the EU amounts to a whopping 1.8 billion euros. However, only 40 million euros explicitly refer to potentially illegal behavior by Apple, accused of abusing its dominant position in the music streaming market on Apple devices. The majority of the fine is apparently intended as a deterrent. Apple has already announced that it will take legal action and challenge the ruling.

In this particular case, it is a dispute with the streaming provider Spotify that has been going on for years. The Spotify app can only be obtained on Apple devices through its own app store, and subscriptions and other payments are processed through Apple services. For this, the company earns a tidy profit and points to the provision and further development of the digital infrastructure, which is used by Spotify and other providers. The EU Commission apparently tends towards Spotify’s position, yet the final word in the matter is probably not yet spoken.

Apple burns through $70 million in stock value in a single day What was surprising was how much the news pushed Apple’s stock price down on Monday: A daily loss of ultimately over 2.5 percent corresponds to a destruction of capital of around 70 million dollars in a single trading day, given the current market capitalization of around 2.7 trillion US dollars. Even some DAX companies do not add up to that much. But in the US tech industry, people are already thinking in different dimensions, especially when it comes to stock market activity and stock price development.

In reality, it is not really the 1.8 billion euro fine – if it even stands in the end – that is alarming Apple investors. The company can easily pay that amount. The real problem is the long-term signals that the EU ruling sends. With every antitrust ruling that the EU imposes on corporations – especially US tech giants – it becomes increasingly clear that the old continent is increasingly relying on regulation. The days when heavyweights like Apple, Google or Amazon could do as they pleased in Europe are over – not completely, but their market power is gradually being curbed with each individual ruling.

Investors alerted: Something is brewing This could have a negative long-term effect on the business development, especially in the service sector, which has been increasingly important for Apple for years and is constantly growing. The service division becomes more important, especially when sales are sluggish, as is apparently the case in the Chinese market.

No wonder that investors are reacting with alarm: Something is brewing on the otherwise sunny horizon of Apple. Analysts are divided and interpret the current plunge – including a new yearly low – as a search for a bottom. On the other hand, they point to possible innovations in the field of Artificial Intelligence, which are expected from Apple starting in the summer.

But no Apple Car: Ambitious plans shelved after years of research In reality, the prioritization in the company’s portfolio seems to be shifting. This is also indicated by an announcement that the company surprisingly made public last week. According to this, the project that has been pursued for years to bring its own car onto the road is being scrapped. Part of the workforce, who worked on the development of the Apple Car, which will probably never come in this form, will be taken over into the AI department, while others apparently have to leave the company.

Classic car manufacturers, who have been facing increasing competition from new players, especially in the electric sector, reacted mostly relieved to the decision. Unlike Tesla, it is unlikely that traditional IT companies from Silicon Valley will pose a threat to established car brands in the foreseeable future.