Apple almost lost its throne as the most valuable company in the world on Wednesday to Microsoft. The Cupertino tech giant is expected to release its quarterly performance results on Thursday. As per a Reuter report, Apple’s shares dipped by 0.3% ahead of the quarterly results. The possible reason why investors might have pulled some of their money out is because of the global-supply chain crisis. While iPhones remain some of the most wanted tech gadgets in the market, Apple hasn’t been able to meet the demands because of a supply shortage in components.
Microsoft Almost Overtook Apple as the Most Valuable Company in the World
Shares of Microsoft jumped by 4.2% to reach a record $323.17 fuelled by the growth in its Azure cloud-computing business. This helped elevate the company’s market cap to $2.426 trillion. According to Refinitiv data, this market cap figure of Microsoft wasn’t too behind Apple’s market cap of $2.461 trillion. Because of the increase in consumption of cloud-based services, Microsoft’s business has expanded in 2021. The company’s stock has rallied over 45% this year alone. Since mid-2020, Apple has kept the position of being the most valuable company. That might change if Microsoft’s growth keeps at the same rate. As for Apple, the supply chain issues aren’t going to fix any time soon. Regardless, the company’s sales is expected to see positive growth in the September quarter. In the developing markets, Apple is expected to earn more out of the iPhone 12 series devices which are discounted now instead of the latest iPhone 13 series. Because of limited stock, the iPhone 13 series will only fuel growth into company sales overseas once by the end of the December quarter or in 2022. Microsoft is expected to end the year strong with noticeable growth in cloud services. For years now, Apple and Microsoft have kept on taking place as being the most valuable companies on Wall Street. The trend for this should continue.
