Apple has lost its crown as the world’s most valuable public company to Microsoft after its shares dropped about 2 percent. The company suffered at least $6 billion worth of sales during its fiscal fourth quarter citing supply chain problems.
According to CEO Tim Cook, Apple is expecting a worse impact on sales during this holiday quarter.
“Compared to less hardware focused FAANG peers, Apple is a lot more exposed to supply chain disruption,:equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, said.
While Microsoft’s shares rose 2.2 percent to a record high of $331.62, ending the session at a market capital of $2.49 billion, Apple’s shares dropped 1.8 percent to $149.80, ending the session with a market capitalization of $2.48 trillion.
Microsoft has faced increased demand for its cloud-based services, especially during the pandemic period. This has seen its stocks surge 49 percent, compared to Apple’s 13 percent surge.
Apple has held the title of Wall street’s most valuable company since 2020. The company has been at odds with Microsoft since 2010, after the iPhone made it a premier consumer tech company. Since then, the two tech giants have taken turns at the top spot.
Apple has managed the supply issue well, however, with Cook’s latest assertions, the company is bound to experience a hit on its performance this year.
Just recently, KahawaTungu reported that high demand and supply chain issues were causing a record delay in iPhone 13 shipments.
Customers in the United States who account for more than a third of iPhone buyers faced delays of between 19 to 34 days in the second week compared to 7 to 20 days in the first week. Both timelines are longer compared to the waiting times for iPhone 12.
Customers who enquired about the delays from Vodafone and Verizon on social media were told that supply chain issues and demands were the cause of the delays.
Apple is also reported to have suspended production in a number of Chinese factories to comply with tighter energy consumption policies, putting the supply chain at risk.
Microsoft has however warned that its key units such as those producing the Xbox gaming consoles and Surface laptops were also facing supply chain issues.