Apple's Market Cap Plummets from $5 Trillion to $4.5 Trillion Amid AI Strategy Doubts

Under Tim Cook's leadership, Apple's market capitalization has grown from $350 billion to an astonishing $5 trillion. The journey began in 2018 when Apple hit the $1 trillion mark just 38 years after its initial public offering (IPO). Two years later, the company reached $2 trillion due to pandemic-driven demand, and by January 2020, it had surpassed $3 trillion on the back of its services business.

The fourth trillion was achieved in October 2025, driven by strong iPhone sales and institutional investment. However, Apple's market cap has since fallen from around $5 trillion to about $4.5 trillion after investors sold shares following its earnings results.

Apple is facing challenges amid the AI book, including higher hardware costs due to a global memory shortage, doubts about its AI strategy, and regulatory challenges in markets such as China.