Microsoft surpasses Apple as the world’s most valuable company first time since 2021.
Microsoft building in Vancouver, BC, Canada. Image credit: Matthew Manuel via Unsplash, free license
On Thursday (Jan.11), Microsoft claimed the title of the world’s most valuable company, surpassing Apple. This shift occurred as Apple faced its slowest start in years at the beginning of 2024, driven by increasing concerns about demand.
Shares of Microsoft, headquartered in Redmond, Washington, experienced a 1.5% increase, resulting in a market valuation of $2.888 trillion. Microsoft’s early lead in capitalizing on generative artificial intelligence played a significant role in attracting investors.
Meanwhile, Apple saw a 0.3% decline, holding a market capitalization of $2.887 trillion. This marks the first time since 2021 that Apple’s valuation has fallen below that of Microsoft.
Apple’s stock has registered a 3.3% decline in January so far, as of the last closing, in contrast to Microsoft’s 1.8% rise during the same period.
Apple’s Weakness Follows iPhone Sales Concerns and Downgrades
The recent decline in Apple’s performance is attributed to a series of rating downgrades, raising concerns about sustained weakness in iPhone sales, particularly in the crucial Chinese market, due to intensified competition from a resurgent Huawei and heightened Sino-U.S. tensions.
Apple, whose market capitalization reached a peak of $3.081 trillion on December 14, concluded the previous year with a 48% gain, trailing behind Microsoft’s impressive 57% rise. Microsoft’s robust performance was driven by aggressive rollouts of genAI-powered tools in 2023, facilitated by its collaboration with ChatGPT-maker OpenAI.
Written by Alius Noreika