More than a trillion dollars wiped out the value of Apple in the face of China’s chaos

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More than $1 trillion has been erased from Apple’s value since its peak as technology stocks have been battered by soaring inflation and the Covid chaos in China.

Shares in the iPhone maker fell 4.3% on Tuesday amid growing concerns about the global supply chain and a broad sell-off in the United States.

It raised the company’s value to $1.98 trillion, down from a peak of $3 trillion at the start of 2022.

This decline means that there are no longer any companies worth more than $2 trillion, after the withdrawal of Microsoft and oil giant Saudi Aramco in 2022.

The US technology-focused Nasdaq fell 0.8 percent on Tuesday, with Tesla the biggest loser. Elon Musk’s electric car company fell more than 12 percent on the day after it disappointed investors with its delivery numbers.

Apple shares have been falling for months on concerns about problems with iPhone production in China. Hundreds of workers at Foxconn’s main iPhone factory rioted in November over Covid restrictions.

iPhones are one of Apple’s biggest revenue drivers, generating nearly $200 billion in sales for the company over the past year.

Murata Manufacturing, another supplier to Apple, said it expects the tech company to cut plans for iPhone 14 production further in the coming months.

“Judging by the availability of the phone in stores, I see a downward adjustment happening. I hope it’s not too deep,” said Norio Nakajima, president of Murata.

Meanwhile, Nikkei reported on Monday that Apple has asked several suppliers to produce fewer components for some products, including AirPods, Apple Watch and MacBooks, due to weak demand.

December was Apple’s worst month since May 2019, falling 12 percent, which surpasses the 9 percent drop for the tech-heavy Nasdaq 100 in the same period.

The four largest US tech companies lost more than $3 trillion in market value in 2022 amid soaring inflation and slowing sales growth that soared during the pandemic.

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