Apple Stock: Microsoft Overtakes as World's Most Valuable Company

Apple has lost its position as the world's most valuable company to Microsoft following a dramatic stock plunge. The iPhone maker's market capitalization has fallen to approximately $2.59 trillion, while Microsoft now leads with a valuation of around $2.64 trillion. This shift comes after Apple's shares tumbled by 23% in just four days, erasing nearly $500 billion in market value. The primary catalyst for this decline is the escalating trade tensions between the United States and China, with new special tariffs totaling 104% now imposed on Chinese imports to the US. This development particularly impacts Apple, as the company manufactures most of its products in China.

Production Relocation Challenges

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Experts indicate that relocating Apple's production chain presents significant hurdles. Moving even 10% of the supply chain to the United States would reportedly take approximately three years and cost around $30 billion. In response to these challenges, Luxshare, a key Apple supplier, is exploring production alternatives outside China. The company is considering investments in the US as well as expanding operations in Southeast Asian countries where it already maintains facilities, including Malaysia, Thailand, Vietnam, and Mexico. However, establishing new production lines at existing locations would still require between 12 to 18 months. The broader technology sector has also suffered from the trade dispute, with companies like Tesla, Nvidia, Amazon, and Meta experiencing notable stock declines.