Microsoft is now the most valuable company in the United States, as Apple drops to fourth position. This is following the revised revenue guidance in early January.
After previously becoming the first company worth $1 trillion, Apple declined significantly in the last couple of months, has made it possible for Microsoft, Amazon and Google to take the first to third spot while Apple drops down to fourth.
Apple’s problems worldwide have substantially affected the company’s market cap, Its low sales of devices last year (iPhone XR, XS/Max) was a major factor that has caused the company’s lost of financial and market value.
Microsoft, the most valuable US company, has a market cap of $782.4 billion, while Amazon is pretty close with $770.6 billion. Google’s parent company Alphabet was placed third with $748 billion, while Apple that is now fourth has a market cap of $700.9 billion.
Factors Responsible For Apple’s Decline
According to Apple’s CEO Tim Cook, who said earlier this week that one of the reasons the iPhone isn’t selling as well as anticipated is the trade tension between China and the United States.
“What I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy. We saw, as the quarter went on, things like traffic in our retail stores, traffic in our channel partner stores going down, the reports of the smartphone industry contracting,” he said.
However, aside from the trade tension between China and United States, another factor that could be attributed to Apple’s woes, is the legal issues the company is having here and there.
Particularly Its legal issues with Qualcomm has eventually led to an injunction on iPhone sales in Germany and China.
But how soon will Apple company bounce back to be the most valuable US company? Well, according to Analysts, Apple is expected to face bigger drops in revenues in the coming quarters, especially as sales after the holiday season are projected to decline.