Tuesday's share fall in prices of more than 3% resulted in Apple's market capitalization falling below $2 trillion for the first time since May.
In August 2020, Apple became the first company to be valued at $2 trillion, because of the pandemic's increased need for its mobile devices for distant work and education. In January 2022, it temporarily reached a market value of almost $3 trillion.
At Tuesday's market closing, Apple's share price dropped $3.74% to $130.20, a 52-week low, giving the company a $1.99 trillion market value.
Due to COVID restrictions on its main plant in China, Apple had trouble shipping iPhone 14 Pro units throughout the holiday season.
Its flagship Zhengzhou facility in central China, which employs over 200,000 people, has been shaken by frustration with strict measures to combat the spread of COVID-19, with many workers quitting the site last year.
Workers were filmed abandoning the site in late October after complaining about their treatment and provisions on social media. To avoid the spread of the virus, nearby communities have devised strategies to separate migrant workers retreating to their hometowns.
Manufacturing of Apple's iPhones was projected to drop to 30% in a November estimate.
In the same vein, Foxconn, Apple's largest iPhone manufacturer, said in December that it was working to recover full production at a major plant in Zhengzhou, China, that had been impacted by COVID-19 limits, and that its fourth-quarter projection had been reduced.
"The facility is currently operating at significantly reduced capacity," Apple said in a November statement. "Customers will experience longer wait times to receive their new products."
The majority of Apple's latest phones, including the iPhone 14, are made at Foxconn's Zhengzhou facility, which has roughly 200,000 workers.
Investors are also concerned about rising interest rates and weakening consumer confidence, both of which might dampen demand for Apple's high-priced items.
According to a new estimate from supply chain analyst Trendforce, Apple's iPhone shipments fell 22% in the December quarter. Nikkei reported Apple has instructed suppliers to produce fewer components for items such as AirPods, Apple Watch, and MacBook computers.
Apple is the last large company to shed its $2 trillion valuation. Microsoft previously reached the $2 trillion milestone before retreating in 2022.
In 2022, Apple missed the S&P 500 index, which fell more than 18%. Apple's share price plummeted by approximately 27% last year.
The broader market was down Tuesday, with the S&P 500 index losing over 1% during trading.
