Microsoft overthrew Apple as the most valuable company in the world
Although the technology giant from Cupertino has had great success in the past decade, which has allowed it to become the most valuable public company in the world, its competitors are not far behind in this regard, especially since yesterday Microsoft ousted Apple from this position. Shares of the company behind the iPhone fell 0.3 percent in yesterday’s trading day, while Microsoft rose 0.5 percent, Reuters reported.
That put Microsoft’s cash value at one point yesterday on the stock market at $2.903 trillion (US trillion), while Apple’s was at $2.889 trillion.
Overall, Apple shares had a weak start to the year due to growing concerns about demand for its products in the market. On the other hand, the shares of the company Microsoft have risen sharply since last year, mostly thanks to its role in the field of artificial intelligence and partnership with the company OpenAI, which is the creator of the ChatGPT bot. Apple hasn’t made much of an AI boom in the past year, though it’s reportedly working on its large language models with various applications.
However, the new Microsoft title seems to be of a temporary nature, as the state of the stock market will tell after all, and Apple is preparing to officially launch the Vision Pro glasses of virtual and augmented reality, along with other devices that will arrive during the year.
Also, the temporary nature of the title lies in the fact that in the past Microsoft also succeeded in overtaking Apple from the position of the most valuable company, among other things during 2020 and 2021, but it was not something more permanent. Then Microsoft ousted Apple from this position due to supply chain shortages that affected the industry during the COVID-19 pandemic. This resulted in a drop in the Cupertino giant’s share price, and Microsoft’s work-from-home policy allowed it to further strengthen its position in the same period. Both of these factors thus contributed to the growth of the value of Microsoft shares.
Then we come to last year, when Apple did not introduce any upgrades to the iPad device and this affected its revenues. However, 2024 should be quite a “busy” year for Apple as new products are planned. In the first half of the year, iPad Pro models with an OLED screen and an M3 chip should arrive, and they should, among other things, strengthen sales.
Of course, Apple Vision Pro glasses are also planned, which we will probably see already on February 2, and market analyst Ming Chi Kuo said recently that the glasses could sell out quickly, which then leads to a potential shortage, which means that demand is growing.
However, taking into account the price of this device, which is “only” 3,500 dollars, it is certain that this device will not be available to the general public, and thus to mass production, so it may not be able to raise the company’s sales to a sufficient level. However, it is still too early for speculation, because all this information about movements in the market and the stock market are currently only assumptions, but the fact is that the balance of power of the technological giants is slowly changing, it is just a question of its durability.