Microsoft overtook Apple as the world’s most valuable company on Friday. Apple shares fell sharply yesterday after disappointing results, making Microsoft the number one company in the world in terms of valuation. Apple’s 4,444 shares fell about 4% on Friday to 147.10 a share, bringing the company’s market capitalization to $2.43 trillion.
Microsoft shares rose 0.9 percent to 327.30 per share, bringing their market capitalization to $2.45 trillion, higher than Apple, which previously held the number one spot for the entire year.
Apple is the first company in history to exceed $1 trillion in market capitalization, a milestone it has reached over the past three years. However, the company has struggled this quarter due to shortages in the supply chain, which has caused the production of new iPhones to be significantly delayed.
“This year, we’re launching our most powerful products to date, from the M1-powered Macs to the iPhone 13 series, setting new standards for performance and enabling our customers to create and connect connected in new ways,” said Apple CEO Tim Cook. “We infuse our value into everything we create – we are getting closer to our 2030 goal of being carbon neutral throughout the supply chain and throughout the product lifecycle, and we are continuing to unceasing mission to build a more just future.
Microsoft recently launched its latest operating system, Windows 11, earlier this month.
Chip shortage gave an edge to Microsoft
The company is expected to produce 90 million new iPhones by the end of 2021, but Bloomberg reports that the company believes that number could drop by 10 million.
Apple is one of the most powerful chip buyers on the planet and dictates the global electronics supply chain. Despite its impending presence, the company is still plagued by supply chain issues that have significantly impacted industries worldwide. Chipmakers have issued stark warnings that supply won’t be able to meet demand for chips until 2022 and possibly beyond.
Apple supplies parts for its phones from Texas Instruments and Broadcom. A rare TI chip is now used to power the new iPhone’s OLED display. Apple is also facing shortages from various suppliers.
Customers suspect something is amiss after a delay in shipping for a new Apple phone. The iPhone 13 Pro and iPhone 13 Pro Max were released in September, but orders were not met until at least a month later. New models are often marked as “not currently available” at many Apple stores across the country.