Embarrassing Face ID failed demonstration wipes billions off Apple’s market value

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Photo via Wired

On Tuesday, after an embarrassing failed live demo during the highly-anticipated unveiling of the new iPhone X, the share price of Apple fell dramatically.

Apple’s senior vice president of software engineering, Craig Federighi, tried to unlock the device as he tried to demonstrate a new feature that allows iPhone X users to utilize facial recognition technology to unlock the handset.

“Here is iPhone 10 [X]. Now unlocking it is as easy as looking at it and swiping up…” starts Federighi.

After his attempt fails, Federighi continued and said  “let’s try that again,” before having one more go which shows ineffective. The Apple executive then makes use of a back-up method to unlock the phone and continue with the presentation.

The setback meant that the shares of Apple dropped by approximately $4, decreasing from around $163 to $159 per share, slashing an estimate of about $20 billion off the market cap value of the tech giant.  The share price of Apple slightly recovered after the incident to close at just over $160 per share.

Markets analyst and founder of Financial Orbit, Chris Bailey, stated that the firm had encountered stock market “euphoria” during the past few days running up to the Apple Special Event, as people anxiously awaited news of its latest products.

“There is an old saying in the investment world that the stock market is ‘all about fear and greed.’ We have seen both aspects of this in the last few days as regards the Apple share price. The world’s most valuable company saw its share price rise to record levels in the days leading up to the launch event as the hope factor about what a new range of iPhones could mean for the company’s sales and profitability,” said Bailey.

“Sometimes though, it is better to travel than arrive and such euphoria can reverse quickly – as shown by the decline in the shares when one of the firm’s executives struggled to unlock the phone using Face ID during yesterday’s presentation.

“Such is the fickle nature of the stock market on a day-by-day basis. Ultimately however whether the shares are higher or lower by this time next year depends largely on Apple’s ability to sell us all their new phones and make good money doing so.”