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Apple has lost its position as the world's most valuable public company to Microsoft following a dramatic four-day slide in its stock price, driven largely by concerns over President Donald Trump's escalating tariff war with China, where most of its iPhones are assembled.

Apple-vs-Microsoft-feature.jpg

Apple's market capitalization fell to $2.59 trillion as of Tuesday's close, while Microsoft now sits at $2.64 trillion, reclaiming the top spot after briefly holding it earlier this year.

Apple shares have plummeted approximately 23% over just four trading sessions, shaving $700 billion off its value, as panicked investors dump stock due to the company's exposure to China for manufacturing and sales. Apple relies heavily on Chinese manufacturing for its flagship products, making it especially vulnerable to Trump's aggressive tariff policies.

The broader market has been shaken by Trump's announcement of substantial tariffs on imports from more than 100 countries, with the Nasdaq dropping 13% over the same four-day period. However, Apple's decline has outpaced other tech companies due to its particular vulnerability to U.S.-China trade tensions.

UBS analysts have predicted that the price of the iPhone 16 Pro Max could increase by as much as $350 in the United States as a result of the tariffs. The potential price hike raises questions about how consumers might respond to significantly more expensive Apple products.

Apple has been exploring manufacturing diversification in countries like India and Vietnam in recent years, but analysts suggest it would be nearly impossible for the company to quickly shift its complex supply chain away from China. That's despite President Trump saying he "absolutely" believes that Apple could manufacture its iPhones and other devices in the United States. Apple CEO Tim Cook has previously said that China's manufacturing expertise and scale are unmatched globally.

Both Apple and Microsoft, along with chipmaker Nvidia, had recently achieved market valuations exceeding $3 trillion before the current market turbulence began.

Microsoft appears somewhat insulated from the worst effects of the tariffs, with Jefferies analysts recently including the company among those they view as better positioned to weather the current uncertainty.

The two tech giants have traded the "most valuable company" title several times in recent years, with Microsoft claiming the top spot in early 2024 before Apple regained it – only to lose it again during this week's market volatility.

According to one report, Apple earlier this week urgently requested suppliers to ship as many premium devices as possible to the U.S. by air freight before Trump's falsely-described "reciprocal" tariffs of 104% on China came into effect Wednesday. China has since retaliated by slapping 84% tariffs on U.S. goods.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Dethroned by Microsoft As Top-Valued Company Amid Tariff Fears
 
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I’m curious as why apples stock is falling bc this is all Trump not Apple. I could see if Apple had already announced that the prices were increasing.
Yes they sell a lot of goods but Apple will need to start innovating again soon. Been a lot of iterating only and that can only last so long. So is it a matter of tariff coincidence or was a stock price slide bound to happen sooner or later?
 
Makes sense of course that Microsoft is much better prepared for these tariffs, Apple is basically entirely reliant on hardware, even for its services. Microsoft isn't. And services aren't being hit.
Microsoft is better placed than Apple but they will take a hit. They’ve been pushing their own hardware for a while now and any downturn in PC sales will mean lower Windows revenues.
 
I’m curious as why apples stock is falling bc this is all Trump not Apple. I could see if Apple had already announced that the prices were increasing.
The markets are looking forward. Apple is a growth stock. Tariffs will inevitably lead to higher prices at some point which could mean lower sales and slower growth.
 
I guess Microsoft has it easier as they get a large portion of their profit from software and OS licensing fees, so the actual hardware can be assembled on the Moon for that matter. However, I believe that their hardware is also assembled mostly in China?
 
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I'm always amazed by the fact that we're not surprised anymore by this figures. $2.59 trillion, more than $3 trillion.
Like peanuts

I don't think human minds can comprehend the magnitude of such numbers in any meaningful way, as we have no visceral experience of them.

For instance:

1 million seconds = 11.6 days
1 billion seconds = 31.7 years
1 trillion seconds = 31688 years
 
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