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Apple is no longer the only company with a $2 trillion valuation

Shares of the iPhone maker fell 3.7% on Tuesday, taking its market capitalization to $1.989 trillion.

Apple surpassed the $2 trillion market cap for the first time in August 2020 as consumers flocked to its devices during the COVID pandemic. Even the company based in Cupertino achieved briefly a market cap of $3 trillion on January 3, 2022, almost exactly one year ago.

Yet Apple’s stock has fallen sharply since then. The company’s shares fell 27.2% in 2022, outperforming the broader market. The S&P 500 fell 19.2% over the same period.

Yet Apple stock still did better than other companies in the tech space, with Alphabet and Amazonia shares down 38.8% and 50.7% respectively compared to 2022.

Apple is still the most valuable company in the world, ahead of Saudi aramco and Microsoftwhich both slipped from a $2 trillion valuation last year.

Falling apple

Apple, like other device makers, is facing a weaker market for consumer electronics. Apple is telling suppliers to make fewer components for devices like AirPods and MacBooks due to weaker demand. reported Nikkei Asia.

Consumers have splurged on computers, tablets and smartphones during 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 maker is also hurt by COVID disruptions in China, which is both a large market and a major manufacturer of Apple products.

The company warned in November that iPhone shipments could be affected by “significantly reduced capacity” at Foxconn’s Zhengzhou plant.

Employees of the supplier Apple clashed violently with security personnel in late November as migrant workers worried about COVID controls and the risk of becoming infected.

Foxconn now says its Zhengzhou factory is return to normal staffing levelsand is shipping phones at 90% capacity, according to to the local newspaper Henan newspaper.