🍎 China made Apple sour

What’s going on here?

China’s upsetting Apple’s best-laid plans, just as the firm gears up for a fresh iPhone launch.

What does this mean?

You’d think the imminent release of Apple’s newest iPhone would be the talk of the tech world right now – but Apple’s facing a different kind of buzz thanks to China. There’s been some less-than-hushed chatter that government agencies and state-backed firms are giving iPhones the cold shoulder. And a wave of Chinese nationalism is on the rise too – which might see everyday citizens swapping their iPhones for local brands. It gets worse, though: let’s not forget that Huawei, China’s tech darling, is about to drop a new phone that’s both wallet-friendly and more high-tech by many measures. All in all, then, Apple’s sales could take a dent, and lead the firm to miss holiday forecasts just like it did during its last big Chinese slowdown in 2019.

Why should I care?

For markets: One bad Apple…
Apple’s shares have been on a rollercoaster since the news broke, and not the fun kind: in just two days, the tech giant’s value has shrunk by a whopping $200 billion. And it’s not just Apple feeling the heat. Investors are getting cold feet with other tech stocks too (from chip companies to firms with a big footprint in China), while US-listed Chinese stocks are also on the chopping block.

The bigger picture: Don’t trade off the orchard for an Apple.

While Beijing’s been tight-lipped so far, some think this is China’s way of saying, “Two can play at that game” – hinting at US tech restrictions on chips and brands like Huawei. But let’s not jump the gun. Some Wall Street whizzes believe the Apple panic is a tad overblown. After all, Apple’s not just any old tech titan: it supports millions of workers across the country – and that's a bridge that China’s probably very wary of burning.

What’s going on here?

Turkish grocery delivery firm Getir has seen better days, after clocking up a terribly underwhelming valuation.

What does this mean?

During the pandemic, our doorsteps were the hottest dining spots – and Getir was the chef de cuisine. Founded in 2015, the firm was among the biggest of more than a dozen delivery-app companies that raised over $5 billion in the period. But as lockdowns lifted, the delivery buzz quieted down, and many of Getir’s peers either shuttered or got sold. Still, the Turkish titan survived – but now, with interest rates high and economic conditions wobbling, its quest for fresh funds is facing headwinds. And sure, Getir is set to pocket $500 million in its latest fundraising round, but that’s not to say it’s been smooth sailing: the firm’s valuation did shrink from a whopping $12 billion to a far more humble $2.5 billion in 18 months.

Why should I care?

Zooming in: Getir, let’s get this bread.

Getir’s situation is typical of the startup ecosystem right now, with venture capital funding down over 50% in the year to March. But here’s the twist: despite this valuation dip, Getir’s recent fundraising stands out as one of the year’s biggest. And that stands to reason: the firm’s an established presence in the space, especially after acquiring rival Gorillas last year – and it’s got plans to double-down on five countries for more sustainable growth. Taken as a whole, then, that seems to have softened investors’ skepticism – and helped open their wallets too.

For markets: Venture a guess.

Word on the street is that venture funding might start to bounce back by the end of the year, and gain momentum in 2024. And with big players like chip maestro Arm and US delivery champ Instacart prepping for their market debuts, we’re set for a front-row seat to gauge if investor faith is truly reviving.