Tim Cook walks in the Paddock before the F1 United States Grand Prix at Circuit of The Americas on October 23, 2022 in Austin, Texas.
Jared S. Tilton | Getty Images
An apple shares fell more than 3% in Tuesday trading, giving the iPhone maker a market capitalization below $2 trillion for the first time since May.
Apple fell $3.74% to $130.20 a share, a 52-week low, giving the company a $1.99 trillion valuation at Tuesday’s market close.
Apple first reached a $2 trillion valuation in August 2020 as the pandemic boosted sales of computers and phones for remote work and school. It briefly reached a market cap of over $3 trillion during trading in January 2022.
Apple struggled with iPhone 14 Pro shipments during the holiday season due to Covid restrictions on its main factory in China. Investors are also wary of rising interest rates and declining consumer confidence, which could hurt demand for Apple’s premium-priced products.
A recent report from supply chain analyst Trendforce said Apple’s iPhone shipments fell 22% in the December quarter. Apple has told suppliers to produce fewer components for products including AirPods, the Apple Watch and MacBook laptops, according to Nikkei.
Apple is the latest major company to walk away from its $2 trillion valuation. Microsoft previously hit the $2 trillion mark, but pulled back from it in 2022.
The broader market was lower on Tuesday, with the S&P 500 down nearly 1% in trading.
In 2022, Apple underperformed the S&P 500, which fell more than 18%. Apple’s stock price fell nearly 27% in 2022.