Apple loses its position as the world’s most valuable company. The price of shares falls — and Microsoft takes the number one spot.
The news follows after Apple CEO Tim Cook announced a $6 billion (€5.2 billion) quarterly loss, a result of unexpected manufacturing problems. Apple’s supply chain was hit by COVID-19. Although the organization observed that shortages were improving in October, chips remain scarce – “and most of our products are now affected”, Cook told Reuters.
While the price of Apple shares fell by 3.6 percent, Microsoft’s value rose by 0.7 percent; enough to knock Apple off its throne. Microsoft, with a market valuation of 2.46 trillion dollar (2.13 trillion euros), has become the world’s most valuable company.
The news is as big as it is unsurprising. The price of Microsoft’s shares rose by 45 percent in the past year. Its cloud foundation proved indispensable during the pandemic. Apple, for whom hardware is at the core, suffered supply issues. CEO Tim Cook reports that the setback only promises to be more severe during the upcoming holiday season.