Apple has lost $1 trillion market value in just a year

Apple's market value fell below USD 2 trillion during trading on Tuesday. This is the first time such a thing has happened since December 2021 and a year to the day Apple became first public company to be valued at USD 3 trillion. This translates to the tech giant losing market cap of USD 1 trillion in just 1 year.

Like many tech companies, Apple has been hit by supply chain issues. Its manufacturing in China has taken a hit due to fresh wave of Covid infections in the only major economy combating such a crisis. On Tuesday (January 3), Apple's shares were down by nearly 4 per cent.

Nikkei reported on Monday that Apple had notified some of its manufacturers to make fewer parts of its popular products like the AirPods, Apple Watch and Macbooks.

"Apple has alerted us to lower orders for almost all product lines actually since the quarter ending December, partly because the demand is not that strong," a manager at an Apple supplier was quoted by Nikkei Asia.

"The supply chain in China is still trying to cope with the latest abrupt policy turns, which brought a shortage of laborers because of the sharp COVID surges."

Such reports have raised concern about demand for Apple products as well.

Apple is not the onlycompany to suffer massive reduction in market capitalisation.

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Over the last year Amazon and Meta have seen their share prices tumbling by 50 per cent and 63 per cent respectively. Apple's by comparison have taken a dive of about 31 per cent.

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