Microsoft threatens Apple's position as world's most valuable company

Apple's stock has recently fallen, raising concerns that the company could lose its title as the world's most valuable company to Microsoft.

Apple shares have lost 0.5% this year on concerns about global smartphone demand. Last year, the stock rose 48%. By contrast, Microsoft shares are up nearly 2% this year, after rising 57% last year.

Apple's current market capitalization is $2.896 billion, while Microsoft's is $2.845 billion. Apple's market capitalization reached $3.081 billion on December 14.

Apple shares fell as iPhone sales in China fell 30% in the first week of 2024, according to data from research firm Jefferies, the latest sign of growing pressure on the company in the market amid competition from Huawei and other domestic rivals.

Apple and Microsoft market capitalization from 2019 to 2024 (unit: trillion USD). Chart: Reuters — Apple and Microsoft market capitalization from 2019 to 2024 (unit: trillion USD). Chart: *Reuters*

The Vision Pro glasses will go on sale in the US on February 2, marking Apple's biggest product launch since the iPhone was announced in 2007. However, a report from UBS earlier this week estimated that Vision Pro sales will have a "negligible" impact on Apple's EPS (earnings per share) this year.

Since 2018, Microsoft has briefly surpassed Apple to become the world's most valuable company several times, most recently in 2021, due to concerns about supply chain disruptions during the pandemic.

In its most recent financial report, released in November 2023, Apple forecast holiday sales that fell short of Wall Street expectations, citing weak demand for iPads and wearables.

Analysts say Apple's revenue for the final quarter of last year could rise 0.7% to $117.9 billion. This would be the first time in four quarters that the company has recorded revenue growth compared to last year. Apple will report its financial results on February 1.

Meanwhile, Microsoft's revenue is forecast to increase 16% to $61.1 billion, thanks to steady growth in its cloud computing business. The company's financial report will also be released in the coming weeks.

Ha Thu (according to Reuters)

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