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Microsoft surpasses Apple to become the world’s most valuable company

Apple lost its crown as the world’s most valuable public company to Microsoft on Friday, as shares in the iPhone maker fell about 2 percent.

Apple lost $ 6 billion (roughly Rs 44,940 crore) in sales during its fiscal fourth quarter due to persistent global supply chain problems that led Wall Street to fall short of expectations. Chief boss Tim Cook said the fallout from holiday sales in the current quarter will be even worse.

“Compared to FAANG’s less hardware-focused peers, Apple is also much more prone to supply chain disruptions,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.

Apple shares fell 1.8 percent to $ 149.80 (roughly Rs 11,200) by the end of the session, bringing the company to a market capitalization of $ 2.48 trillion (roughly Rs 1.85.75,202). By comparison, shares of Windows software maker Microsoft rose 2.2 percent to a record $ 331.62 (roughly Rs 24,800), ending the session with a market capitalization of $ 2.49 trillion (roughly Rs 1.86 49,489) …

Apple, which has repurchased $ 421.7 billion (approximately Rs.31.53.186) over the years, announced a massive $ 90 billion (approximately Rs.6.74,077) share buyback in April. As a result, the volume of outstanding shares continues to decline and the company ended its fiscal fourth quarter with 16.4 billion shares.

Microsoft shares are up 49% this year as pandemic-driven demand for its cloud services has boosted sales. Apple shares are up 13% this year.

In 2010, Apple’s stock market value surpassed Microsoft’s value as the iPhone made it the world’s leading consumer technology company. The companies have taken turns to become Wall Street’s most valuable businesses in recent years, with Apple holding the title since mid-2020.

Analysts say Apple has handled the supply chain problem well, but as Cook warned of rising pressures, the door is open to slow its performance with the start of the holiday season.

On the contrary, Microsoft predicts a strong end of the calendar year on Tuesday. But he also warned that supply chain problems will continue to plague key business units such as the Surface laptop and Xbox game console makers.

© Thomson Reuters 2021

This week in the Orbital podcast, Gadgets 360, we discuss Surface Pro 8, Go 3, Duo 2, and Laptop Studio – as Microsoft sets the hardware vision for Windows 11. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you find your podcasts.

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