Published: Sun, December 02, 2018
Markets | By Jeffery Armstrong

Facing threat of U.S. tariffs, Apple loses top valuation crown to Microsoft

Facing threat of U.S. tariffs, Apple loses top valuation crown to Microsoft

Currently, Apple has a market cap of almost $829 billion, meaning it has shed about $270 billion in value after cresting at a record $1.1 trillion valuation in early October.

Microsoft has lost some public mindshare to Apple in the past few years as the Android vs iOS battle became as important at the Mac vs PC one, and Microsoft failed to capture the mobile market. Considering that not long ago Apple (and Amazon not too long after) broke $1 trillion valuation, it has come a long way down since then, due in part to Apples latest (and most expensive) smartphones (XR, XS, XS Max) not selling as well as anticipated.

According to Bloomberg, "the last time Microsoft was bigger than Apple based on market cap was in mid-2010".

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Apple and Microsoft have one of the most storied rivalries in Silicon Valley, one that goes back to the mid-1970s, when both were founded within a year of each other and focused on making breakthroughs in developing personal computers. In August, Apple became the first United States company with a $1 trillion valuation.

On Monday, tech giant Microsoft briefly overthrew Apple as the most valuable company in the U.S., with a market share of $812.93 billion, followed by Apple at a market cap of $812.60 billion. Even though Microsoft isn't immune to struggles in the technology sector, it still held up much better than Apple since it only fell 9 percent compared to Apple's 25 percent, as pointed out by Bloomberg.

The Nasdaq has fallen more than 12 percent since the end of September, with high-flying tech names experiencing big drops.

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Shares of Apple were slightly lower in midday trading on Monday, while Microsoft jumped 2.4 per cent.

Microsoft shares dipped 0.35 percent after-hours to $106.10, putting its market capitalisation also at $814 billion.

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