Shares in the iPhone manufacturer fell 3.7% on Tuesday, dropping its market capitalization to $1.989 trillion.
Apple first surpassed $2 trillion in market capitalization in August 2020, as consumers flocked to its devices amidst the COVID pandemic. The Cupertino-based company even briefly reached a market capitalization of $3 trillion on Jan. 3, 2022, almost exactly a year ago.
Yet Apple shares have fallen sharply since then. The company’s shares fell 27.2% in 2022, performing worse than the broader market. The S&P 500 fell 19.2% over the same period.
Apple, like other device manufacturers, is facing a weaker market for consumer electronics. Apple is telling suppliers to manufacture fewer components for devices like its AirPods and MacBooks due to weaker demand, reported Nikkei Asia.
Consumers splurged on computers, tablets, and smartphones throughout the COVID pandemic, thanks to stay-at-home orders and stimulus money. Yet inflation and a weaker economy could suppress consumer demand for new electronics.
The iPhone manufacturer is also being hurt by COVID disruptions in China, which is both a large market for, and major manufacturer of, Apple products.
The company warned in November that iPhone shipments could be affected by “significantly reduced capacity” at Foxconn’s factory in Zhengzhou.
Employees at the Apple supplier violently clashed with security personnel in late November, as migrant workers worried about COVID controls and the risk of getting infected.
This story was originally featured on Fortune.com
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