JavaScript is off. Please enable to view full site.

Microsoft challenges Apple as world's most valuable company

Microsoft challenges Apple as world's most valuable company

Thursday, January 11, 2024, 11:56 GMT+7
Microsoft challenges Apple as world's most valuable company
Microsoft logo is seen on the smartphone in front of displayed Apple logo in this illustration taken, July 26, 2021. Photo: Reuters

A recent dip in Apple's stock over worries about iPhone sales has left the Silicon Valley tech heavyweight in danger of being overtaken by Microsoft as the world's most valuable company.

Fresh worries about smartphone demand have pushed Apple's shares down 4% so far in 2024 after rallying 48% last year. Microsoft is up about 2% year to date after surging 57% in 2023.

Apple dipped 0.4% on Wednesday, while Microsoft added 1.6%, further eroding the iPhone maker's lead. Apple's stock market value is now at $2.866 trillion, compared to Microsoft's $2.837 trillion value.

Apple's market capitalization peaked at $3.081 trillion on Dec. 14, while Microsoft's value reached as much as $2.844 trillion on Nov. 28.

IPhone sales in China dropped 30% in the first week of 2024, Jefferies analysts said in a client note this week, adding to signs of growing competitive pressures from Huawei and other domestic rivals.

Sales of Apple's Vision Pro mixed-reality headset start on Feb. 2 in the United States, marking Apple's biggest product launch since the iPhone in 2007. However, UBS in a report on Monday estimated that Vision Pro sales would be "relatively immaterial" to Apple's earnings per share in 2024.

Graphics: Reuters

Graphics: Reuters

A handful of times since 2018, Microsoft has briefly taken the lead over Apple as the most valuable company, most recently in 2021, when concerns about supply chain shortages related to the COVID-19 pandemic hit the iPhone maker's stock price.

Both tech stocks look relatively expensive in terms of price to their expected earnings, a common method of valuing publicly listed companies. Apple is trading at a forward PE of 28, well above its average of 19 over the past 10 years, according to LSEG data. Microsoft is trading around 31 times forward earnings, above its 10-year average of 24.

In its most recent quarterly report in November, Apple gave a sales forecast for the holiday quarter that missed Wall Street expectations, hurt by weak demand for iPads and wearables.

Analysts on average see Apple posting revenue up 0.7% to $117.9 billion for the December quarter, according to LSEG. That would mark its first year-on-year revenue increase in four quarters. Apple reports its results on Feb. 1.

Analysts see Microsoft reporting a 16% increase in revenue to $61.1 billion, lifted by ongoing growth in its cloud business when it reports in the coming weeks.



Read more




‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Latest news