First fall below $2 trillion since March 2021

Affected by production issues and weak demand

$996.5 billion in market value wiped out

A year ago on January 3, 2022, Apple Inc's market value for the first time reached $3 trillion, making the tech giant the most valuable company in the world.

However, a year later on January 3, 2023, the company's market capitalization value slipped below $2 trillion for the first time since March 2021.

The smartphone giant was worth $1.990 trillion at the close of trading on Tuesday after seeing its stock drop 3.74% to $130.20 a share.

Apple first reached a $2 trillion valuation in August 2020, when the worldwide Covid-19 shutdown boosted sales of computers and phones for work from home and school use.

But in 2022, the iPhone maker is struggling to deliver the iPhone Pro 14 due to Covid-19 restrictions at its main factory in China.

Investors are also wary of rising interest rates and declining consumer confidence that could affect demand for Apple's premium priced products.

As a result, those factors have pushed Apple's stock to fall throughout 2022, wiping $996.5 billion off its market capitalization.

Meanwhile, Nikkei Asia reported earlier in the week that Apple has told some of its suppliers to cut back on manufacturing components for AirPods, Apple's smartwatches and MacBooks in the first quarter.