Apple's market valuation falls to under $2 trillion

Jan. 3 (UPI) -- Supply chain concerns for iPhones in China have driven Apple's market value below $2 trillion on Tuesday, forcing the company to join Microsoft and petroleum giant Saudi Aramco in falling under the mark.

Apple shares tumbled 4.2% to drive its market value to $1.98 trillion after holding its own most of the year. But COVID-19 lockdowns in China followed by widespread protests upended Apple's supply chain over the critical holiday season.

In all, the U.S.'s four largest tech companies lost more than $3 trillion in market value last year as they were hit with supply chain woes, inflation and stagnant sales.

In November, thousands of workers at Apple's key iPhone plant in Zhengzhou, China, fled or staged protests against extreme COVID-19 zero-tolerance rules that left companies and sometimes entire cities in lockdown.

A year ago on Tuesday, Apple celebrated becoming the first publicly traded company with a $3 trillion market valuation with rising stocks. The company's market value first surpassed $1 trillion in August 2018 and then crossed the $2 trillion mark in August 2020.

But in 2022, Apple underperformed the S&P 500 index, which tumbled more than 18% while the iPhone maker's shares fell nearly 27% from 2020.