Apple's value plunged nearly $1 trillion in 2022. Here's what that says about the economy

Apple marked a grim milestone this week, falling about $1 trillion below a peak reached in 2022.

iPhone News - 02-01-2023 10:46

The company's shares rallied in recent days, but the massive loss in value reflects difficult economic times for companies across the tech industry and beyond.

The tech-heavy Nasdaq plummeted by about one-third in 2022 while the broader S&P 500 fell 19% over that period. Apple's performance, meanwhile, fell right in between those two indexes, dropping 27% over the course of the year.

The deline of a longstanding stalwart like Apple highlights trends that thrust the U.S. economy into uncertainty in 2022, leaving it in a precarious position as the new year begins, analysts told ABC News.

The forces that have squeezed Apple and the wider economy include a shift from pandemic-era consumption that flipped the fortunes of companies large and small, a near-historic rise in inflation that triggered an aggressive response from the Federal Reserve and supply chain disruptions that eased but persisted with zero-COVID lockdowns in China, analysts said.

"You're talking about $1 trillion wiped out from the economy in one stock – it's a big number and it isn't something that should be ignored," Angelo Zino, senior industry analyst at CFRA Research, told ABC News.

Apple did not immediately respond to a request for comment.

Why Apple lost nearly $1 trillion in value in 2022 and what it says about the state of the U.S. economy.

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