- Microsoft’s market cap hits $2.64T, overtaking Apple’s $2.59T.
- Apple stock drops after Trump’s tariffs hit over 100 countries.
- iPhone prices may surge $350 due to new import duties.
Apple’s fall from the top spot was largely driven by a sharp market reaction to the U.S. government‘s unexpected tariff policy targeting a broad range of imports.
In contrast, Microsoft has benefited from a more diversified global footprint. It has less exposure to supply chain disruptions in Asia. Investors have shifted their attention to companies viewed as more resilient in times of geopolitical instability. This shift has allowed Microsoft to reclaim the title of the world’s most valuable company.
Tariffs Trigger Apple’s Fall as Microsoft Claims the Throne
The tech market experienced a seismic shift as Microsoft overtook Apple to become the world’s most valuable company. The shift follows a rapid decline in Apple’s stock. The stock fell significantly over four days due to global trade concerns and a broader tech sell-off.
A key factor in Apple’s decline is its reliance on Chinese factories and suppliers. With new tariffs looming, the company is expected to face mounting production costs. Analysts believe this could lead to major price hikes. Specifically, the upcoming iPhone 16 Pro Max may see a $350 price increase in the U.S.
While Apple scrambles to make temporary adjustments to its supply chain, insiders suggest the company is reluctant to make permanent changes. The leadership reportedly views the trade situation as fluid and not yet worth disrupting long-term strategies built around China.
Meanwhile, Microsoft’s steadier outlook and reduced exposure to tariff-related risks have reassured investors. Its software-centric business model and broader enterprise services make it less sensitive to global hardware disruptions. This has helped it rise above competitors during market turbulence.
As global trade tensions rise, companies with diversified operations like Microsoft are gaining favor. In contrast, Apple’s dependency on China could continue to be a costly vulnerability.
“It’s not the strongest who survive, nor the most intelligent, but the ones most responsive to change.” – Charles Darwin
