Apple narrowly eclipses Microsoft to regain status as most valuable company in US

Posted:
in AAPL Investors edited April 2
After a brisk day of trading, Apple regained its spot as the U.S.'s most valuable company by market value, hitting a cap of $914.86 billion at close.




The company beat out Microsoft, Amazon, and Alphabet, the only three companies within striking distance according to NASDAQ rankings. Microsoft was formerly the frontrunner, having surpassed Apple in November.

Microsoft closed Tuesday at $914.45 billion in market capitalization.

The reason for Apple's resurgence in the short-term isn't clear, given analyst reaction to the "its show time" Apple News event, but analysts and investors appear to be regaining confidence in the wake of a disastrous December quarter which saw iPhone sales tumble 15 percent year-over-year. The company saw its worst performance in China, battered by a combination of lower-cost local phone brands, a weak economy, and its decision to once again hike entry-level iPhone prices, exacerbated by exchange rates.

It has since adopted more aggressive sales tactics to compensate, cutting prices in some countries and extending extra trade-in credit.

Some analysts are pinning their hopes on Apple's growing services business, which includes divisions like Apple Music, the App Store, and its upcoming Apple TV+ video service, coupled with the now-available Apple News+.

While the services themselves may add a modest boost to profits, the real benefit is expected to be keeping people locked into the Apple ecosystem. People may be less likely to switch to Android, Windows, or Chrome OS if they're invested in Apple services, even if its March 25 products are available on outside platforms.

Apple will reveal its quarterly results on April 30.

Comments

  • Reply 1 of 20
    lkrupplkrupp Posts: 7,460member
    But, but, but... the iPhone is dead. So is the iPad and the Mac. Nobody buys ‘em anymore. And services are an abject failure even before they launch. Just do your research in the comment sections of Apple tech blogs and you’ll see. It’s unanimous. Apple is done for, kaput. /s 
    StrangeDaysHenryDJPwatto_cobra
  • Reply 2 of 20
    harrykatsarosharrykatsaros Posts: 21unconfirmed, member
    delete comment.
    edited April 2
  • Reply 3 of 20
    Johan42Johan42 Posts: 163member
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    chemengin
  • Reply 4 of 20
    rob53rob53 Posts: 2,104member
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse products? They get all their money from software and client licenses. Very minimal product line. 
    SoliStrangeDaysHenryDJPwatto_cobra
  • Reply 5 of 20
    StrangeDaysStrangeDays Posts: 8,797member
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Yeah no. While iPhone is Apple's largest revenue source (biggest for anyone in history), they still have other lines with tremendous income; some of their other products do more than other entire corporations. Curious that you don't give Apple credit for these diverse lines of revenue, but do give it to MS. MS did $30.1 billion total revenue in Q4 2018. That same quarter, Apple did $10B in services alone -- little old services, did one-third as much as all of MS entirely for the same quarter. Likewise, iPad+Mac did $12B -- almost half of MS's total for the same quarter. Together that's $22B already. Etc etc... 

    It's clear -- Apple is completely healthy, and anybody who claims MS is more healthy due to their non-dependency on iPhone (conveniently ignoring Windows and Office) is a fool.
    edited April 2 HenryDJPBombdoewatto_cobra
  • Reply 6 of 20
    kimberlykimberly Posts: 268member
    rob53 said:
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse products? They get all their money from software and client licenses. Very minimal product line. 
    Garbage >>> ever heard of Azure ?
    beowulfschmidt
  • Reply 7 of 20
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse? What planet are you on? Microsoft has 3 products that they offer to the public that they've been leaning on for years. Office, Xbox and Windows. The Xbox isn't even profitable since they sell it below what it costs for the to make it, according to Microsoft's public statement. The Surface line is still new and there way too many Windows laptops for much cheaper so the Surface line won't be profitable for them. Microsoft's business services are not counted. The market can't affect them since they don't necessarily serve the consumer. There have been no innovative things coming from Microsoft. Heck, VR stuff is still not penetrating the market. 
    Meanwhile, Apple has been turning out a laundry list of new products that have been successful, along with their Apple Music streaming services. Don't kid yourself that the iPhone is what keeps them afloat. Nice try. 
    edited April 2 watto_cobra
  • Reply 8 of 20
    chasmchasm Posts: 1,703member
    Johan42 said:
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Congrats on achieving the new “dumbest post I’ve ever seen” in this forum award. So Apple is only around because of the iPhone, but Microsoft is incredibly diverse? That’s a laughable statement from a very ignorant person.
    HenryDJPwatto_cobra
  • Reply 9 of 20
    rob53rob53 Posts: 2,104member
    kimberly said:
    rob53 said:
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse products? They get all their money from software and client licenses. Very minimal product line. 
    Garbage >>> ever heard of Azure ?
    Software with expensive licenses. 
    HenryDJPwatto_cobra
  • Reply 10 of 20
    FranculesFrancules Posts: 110member
    💪⚡️
  • Reply 11 of 20
    BombdoeBombdoe Posts: 14member
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Yeah no. While iPhone is Apple's largest revenue source (biggest for anyone in history), they still have other lines with tremendous income; some of their other products do more than other entire corporations. Curious that you don't give Apple credit for these diverse lines of revenue, but do give it to MS. MS did $30.1 billion total revenue in Q4 2018. That same quarter, Apple did $10B in services alone -- little old services, did one-third as much as all of MS entirely for the same quarter. Likewise, iPad+Mac did $12B -- almost half of MS's total for the same quarter. Together that's $22B already. Etc etc... 

    It's clear -- Apple is completely healthy, and anybody who claims MS is more healthy due to their non-dependency on iPhone (conveniently ignoring Windows and Office) is a fool.
    Do you (or others) know what the respective profits (as a % of revenue) are between the iPhone and its other revenue streams like services?
  • Reply 12 of 20
    wonkothesanewonkothesane Posts: 1,404member
    Almost any company in the world wish they would have such a „disastrous“ December quarter. 
    watto_cobra
  • Reply 13 of 20
    Johan42Johan42 Posts: 163member
    rob53 said:
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse products? They get all their money from software and client licenses. Very minimal product line. 
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Yeah no. While iPhone is Apple's largest revenue source (biggest for anyone in history), they still have other lines with tremendous income; some of their other products do more than other entire corporations. Curious that you don't give Apple credit for these diverse lines of revenue, but do give it to MS. MS did $30.1 billion total revenue in Q4 2018. That same quarter, Apple did $10B in services alone -- little old services, did one-third as much as all of MS entirely for the same quarter. Likewise, iPad+Mac did $12B -- almost half of MS's total for the same quarter. Together that's $22B already. Etc etc... 

    It's clear -- Apple is completely healthy, and anybody who claims MS is more healthy due to their non-dependency on iPhone (conveniently ignoring Windows and Office) is a fool.
    kimberly said:
    rob53 said:
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse products? They get all their money from software and client licenses. Very minimal product line. 
    Garbage >>> ever heard of Azure ?
    HenryDJP said:
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse? What planet are you on? Microsoft has 3 products that they offer to the public that they've been leaning on for years. Office, Xbox and Windows. The Xbox isn't even profitable since they sell it below what it costs for the to make it, according to Microsoft's public statement. The Surface line is still new and there way too many Windows laptops for much cheaper so the Surface line won't be profitable for them. Microsoft's business services are not counted. The market can't affect them since they don't necessarily serve the consumer. There have been no innovative things coming from Microsoft. Heck, VR stuff is still not penetrating the market. 
    Meanwhile, Apple has been turning out a laundry list of new products that have been successful, along with their Apple Music streaming services. Don't kid yourself that the iPhone is what keeps them afloat. Nice try. 
    chasm said:
    Johan42 said:
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Congrats on achieving the new “dumbest post I’ve ever seen” in this forum award. So Apple is only around because of the iPhone, but Microsoft is incredibly diverse? That’s a laughable statement from a very ignorant person.
    rob53 said:
    kimberly said:
    rob53 said:
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Diverse products? They get all their money from software and client licenses. Very minimal product line. 
    Garbage >>> ever heard of Azure ?
    Software with expensive licenses. 
    Take it easy there, kids. I only see what 99% of the stock market traders sees: a volatile company whose value would tank if iPhone sales slowed down.
  • Reply 14 of 20
    Thanks for sharing...
  • Reply 15 of 20
    rob53 said:
    kimberly said:
    Garbage >>> ever heard of Azure ?
    Software with expensive licenses. 
    Actually, pretty darned inexpensive, if you compare it against a fully staffed and equipped data center, even using virtual machines, which also need licenses, or in the case of many Linux/Unix installations, highly paid admins or support agreements.
  • Reply 16 of 20
    carnegiecarnegie Posts: 736member
    Bombdoe said:
    Johan42 said:
    Hate the way that market cap is determined. All on conjecture and futures. The idea that MS is more valuable than Apple is preposterous. Apple earns more in a quarter than Microsoft does in a year. 
    And the majority of Apple’s revenue/profit comes from iPhone. Once sales on that start to slow down, Apple will be “less valuable” than Microsoft again, while Microsoft keeps on staying diverse with its products.
    Yeah no. While iPhone is Apple's largest revenue source (biggest for anyone in history), they still have other lines with tremendous income; some of their other products do more than other entire corporations. Curious that you don't give Apple credit for these diverse lines of revenue, but do give it to MS. MS did $30.1 billion total revenue in Q4 2018. That same quarter, Apple did $10B in services alone -- little old services, did one-third as much as all of MS entirely for the same quarter. Likewise, iPad+Mac did $12B -- almost half of MS's total for the same quarter. Together that's $22B already. Etc etc... 

    It's clear -- Apple is completely healthy, and anybody who claims MS is more healthy due to their non-dependency on iPhone (conveniently ignoring Windows and Office) is a fool.
    Do you (or others) know what the respective profits (as a % of revenue) are between the iPhone and its other revenue streams like services?
    For Apple's last reported quarter (i.e. the one which ended in December 2018), its products gross margin was 34.3% while its services gross margin was 62.8%. The gross margin for iPhones would be somewhat higher than for products overall. It was likely around 40%, but couldn't have been much higher than that.

    Apple's operating expenses (i.e. R&D and SG&A) accounted for another 10.3% of revenues. That doesn't get broken out between products and services. But it means, ballparking it, Apple made something like 30% profit in the aggregate from iPhones sales.
    watto_cobra
  • Reply 17 of 20
    xamaxxamax Posts: 132member
    This forum is officially full of paid MS trolls. Please don’t feed the Monkeys.
    edited April 3 watto_cobra
  • Reply 18 of 20
    iOS_Guy80iOS_Guy80 Posts: 254member
    Love receiving those Apple dividends and spending them to upgrade my devices annually.
    watto_cobra
  • Reply 19 of 20
    Johan42Johan42 Posts: 163member
    iOS_Guy80 said:
    Love receiving those Apple dividends and spending them to upgrade my devices annually.
    Trade kiddie pool.
  • Reply 20 of 20
    MacProMacPro Posts: 18,449member
    Kudos to Microsoft for an amazing come back.  They should have fired Ballmer years earlier, he was a buffoon.
    edited April 4 watto_cobra
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