Microsoft will surpass Apple as world’s most valuable company

As Apple grapples with declining iPhone sales, Microsoft's surge in stock value intensifies the race for tech supremacy, setting the stage for a potential shift in the dynamics between these industry giants.

2024 01 11T144207Z 1571284936 RC2PF5AC006M RTRMADP 3 USA STOCKS APPLE MICROSOFT scaled
FILE PHOTO: Microsoft logo is seen on the smartphone in front of displayed Apple logo in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Microsoft appears determined to surpass Apple as the world’s most valuable company. This shift comes after a recent decline in Apple’s stock, driven by apprehensions regarding iPhone sales.

In 2024, Apple’s shares have dropped by 4%, following a remarkable 48% surge in the previous year. In contrast, Microsoft has seen a 2% increase in its shares this year, building on a substantial 57% rise in 2023. On Wednesday, Apple’s shares experienced a 0.4% dip, while Microsoft’s rose by 1.6%, further closing the gap between the two tech giants. Currently, Apple’s market value is at $2.866 trillion, with Microsoft closely trailing at $2.837 trillion.

On December 14, Apple reached its highest market capitalization at $3.081 trillion, while Microsoft achieved a high value of $2.844 trillion on November 28. Nevertheless, there has been a 30% decline in iPhone sales in China during the initial week of 2024, indicating heightened competition from local contenders such as Huawei.

Apple is gearing up for a significant product launch with its Vision Pro mixed-reality headset on February 2 in the United States, marking its most substantial release since the iPhone in 2007. Despite this, a report projected that Vision Pro sales would have a “relatively immaterial” impact on Apple’s earnings per share in 2024.

Microsoft has intermittently surpassed Apple as the most valuable company a few times since 2018, notably in 2021 when concerns about supply chain shortages related to the COVID-19 pandemic affected Apple’s stock price.

In its most recent quarterly report for the end of 2023, Apple provided a sales forecast that fell short of expectations, primarily due to weak demand for iPads and wearables. Analysts anticipate Apple to post a modest revenue increase of 0.7% to $117.9 billion for the December quarter, marking its first year-on-year revenue growth in four quarters. Apple is scheduled to release its results on February 1.

On the other hand, analysts project Microsoft to announce a 16% increase in revenue, reaching $61.1 billion, driven by sustained growth in its cloud business. Microsoft’s results are expected in the coming weeks.

 

More from Qonversations

Business

2024 02 08T033513Z 792143449 RC2DL3AHZ344 RTRMADP 3 SOFTBANK GROUP RESULTS

SoftBank’s CEO Masayoshi Son to raise $100 billion for AI chip venture

Business

2024 02 16T073930Z 639369761 RC2G36ASLNUW RTRMADP 3 JAPAN STOCKS

Japan’s economy slips into recession

Business

2024 02 12T142007Z 1 LYNXNPEK1B0E3 RTROPTP 4 UKRAINE CRISIS GERMANY SCHOLZ

Germany pledges to meet 2% NATO spending target and increase production of artillery

Business

2024 02 09T012933Z 1 LYNXMPEK1801E RTROPTP 4 AUSTRALIA DEFENCE

Australia to allocate $260 million towards the development of next-generation military drones

Front of mind
Screenshot 2024 02 09 at 10.47.42

How to win elections in Africa – Chike Ukaegbu

Ismail Akwei

Presidential elections in Africa have gone through many cycles since the 1950s when Ghana became the first country […]

Read more
Screenshot 2024 01 21 at 07.33.15 scaled

How China can help revive agribusiness in the Caribbean

Eleanor Sa-Carneiro

Against the backdrop of the Caribbean, Trinidad and Tobago’s Fine Cocoa Company is setting sail into the waters […]

Read more