Apple’s 23 percent plunge over the past four trading sessions has once again positioned Microsoft as the world’s most valuable public company. On Tuesday, Apple shares fell to an 11-month low during aftermarket trading, stripping the iPhone maker of its title as the most valuable listed firm. This decline comes as investors liquidated their holdings amid concerns regarding the ramifications of an escalating trade war.
As of the close on Tuesday, Microsoft holds a market valuation of $2.64 trillion, while Apple’s market capitalization stands at $2.59 trillion.
Market challenges
While the broader market faces significant turbulence due to President Donald Trump’s sweeping tariff plan, Apple is experiencing the most severe impact among the major technology companies. This is largely due to the company’s heavy reliance on China for manufacturing.
Trump’s administration has indicated a commitment to imposing a cumulative 104 percent tariff on all Chinese imports starting Wednesday—a decision that threatens to significantly increase the cost of goods produced in China.
Read more: Apple named 2025’s most valuable brand in the world at $574.5 billion
Production vulnerabilities
A substantial portion of Apple’s iPhone production, which is by far the company’s largest revenue generator, occurs in China. This dependency potentially exposes Apple to the full force of Trump’s tariffs. Analysts speculate that such developments could lead to an increase in the prices of Apple’s iPhones by as much as $1,000.
The Nasdaq index has seen a decline of 13 percent over the past four trading days, fueled by President Trump’s decision to impose tariffs on imports from over 100 countries. This has ignited fears of a recession driven by rising prices. UBS analysts projected on Monday that the price of the iPhone 16 Pro Max could surge by as much as $350 in the U.S.
Valuation shifts
Both Apple and Microsoft, alongside chipmaker Nvidia, were previously valued at over $3 trillion before this recent sell-off. Earlier in January, Microsoft had issued disappointing revenue guidance. However, last week, as Jefferies analysts adjusted their price targets for various software stocks, they noted that Microsoft appeared to be among the “companies who we view as more insulated” from the uncertainties surrounding tariffs.
Microsoft enjoyed the highest market capitalization of any public company at the beginning of 2024, although Apple soon reclaimed that title.
