Microsoft Surpasses Apple interms of Market Capitalization

On Jan 13, Microsoft's stock market value surpassed Apple's for the first time since 2021, making it the world's most valuable company as concerns about demand weighed on Apple's shares. On Friday, Apple gained 0.2 percent, while Microsoft gained 1%. According to LSEG data, Microsoft's market capitalization now stands at US$2.887 trillion, its highest level ever. Apple's market capitalisation was calculated using data from a filing on Thursday.

Concerns about smartphone demand have pushed Apple's stock down 3% so far in 2024, after rallying 48% the previous year. Microsoft is up about 3% year to date after surging 57% in 2023, thanks in part to its lead in generative artificial intelligence via an investment in ChatGPT-maker OpenAI. According to LSEG, Apple's market capitalization peaked on December 14 at $3.081 trillion.

Microsoft has integrated OpenAI's technology into its suite of productivity software, which has contributed to a rebound in the company's cloud-computing business in the July-September quarter. Its AI leadership has also created an opportunity to challenge Google's web search dominance.

Meanwhile, Apple has been dealing with sluggish demand, including for its cash cow, the iPhone. China, a major market, has seen a drop in demand as the country's economy recovers slowly from the COVID-19 pandemic and a resurgent Huawei erodes its market share.

Apple's Vision Pro mixed-reality headset will go on sale in the United States on February 2nd, marking Apple's biggest product launch since the iPhone in 2007. However, according to a report released this week by UBS, Vision Pro sales will be "relatively immaterial" to Apple's earnings per share in 2024.