Iphone maker Apple loses crown as world’s most valuable company, know what went wrong

iPhone maker Apple is no longer the world’s most valuable company, as Microsoft has overtaken it following a sharp four-day drop in Apple’s stock prices, according to CNBC. On Tuesday, Microsoft’s market value reached $2.64 trillion, edging past Apple, which stood at $2.59 trillion.

The decline was largely driven by former President Donald Trump’s announcement of higher tariffs on imports from over 100 countries. Apple’s heavy dependence on China for its supply chain and manufacturing has made it particularly vulnerable to these changes.

Wider market concerns, including fears of a recession and rising consumer costs, also played a role. The Nasdaq Composite Index fell by 13% over the past four trading days, reflecting this uncertainty.

Analysts at UBS predict that if Trump’s tariffs are fully passed on to customers, the price of the next iPhone 16 Pro Max in the US could increase by $350. This has sparked further concerns about Apple’s reliance on Chinese manufacturing.

To address rising costs, Apple reportedly plans to shift some iPhone production from China to India, according to a report by the Wall Street Journal. This move aims to reduce the financial impact of the new tariffs.

However, Apple officials have stated that manufacturing locally in the US would be even more expensive than paying the tariffs. Despite Trump’s push for US-based production, Apple remains focused on its long-term supply chain strategy centred on China, though it acknowledges the need for short-term adjustments.

Meanwhile, fears of price hikes have led to increased demand for iPhones, with more customers rushing to Apple Stores across the US to buy their devices now.