Microsoft overhauls Apple to become most valuable US company
For the first time since 2010, Microsoft has become the most valuable US company with $753.3 billion in market capitalisation, overhauls Apple. In 2010 Microsoft had come only second to the Cupertino-based tech giant.
Earlier this year in August, Apple, had became the first $1-trillion US company but it came down to $746.8 billion on Friday, owing to lower-than-expected iPhone sales amid reports of its suppliers cutting cost and workforce.
Meanwhile, Amazon with a capital of $736.6 billion is currently at third and Alphabet (the parent company of Google) with $725.5 billion is at the fourth spot.
According to a report in mspoweruser.com, “With Microsoft now overshadowing all three, including Alphabet Inc, the firm now looks to be the most valuable tech company of the Silicon Valley giants.”
At a time when giants like Facebook and Google face intense scrutiny for users’ data practices, and software services which are witnessing an increased demand from big and small enterprises the world over for their digital journey, the investors are now betting big on companies with robust Cloud services.
Microsoft posted a revenue of $29.1 billion and net income of $8.8 billion for the first quarter of its 2019 financial results, Riding on its growing Azure Cloud, gaming and Surface laptop portfolio.
Revenue has surged by 19 percent while net income increased by 34 percent. And operating income was $10 billion and increased 29 percent.
CEO Satya Nadella said in a statement, “We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation.”
The company also stated, “Windows commercial products and Cloud services revenue increased 12 per cent.”
In the meantime, slower-than-expected demand has reportedly led Apple to direct its top phone assemblers, Foxconn and Pegatron, to halt a planned production boost for iPhone XR, a relatively cost-effective model that hit the shelves late last month.
Taiwan-based company- Foxconn, would produce around 100,000 fewer units daily to reflect the new demand outlook, down 20-25 percent from the original optimistic outlook, Japanese financial paper Nikkei reported earlier this week.
According to an Apple analyst, the estimates of iPhone XR have been cut by nearly 30 million shipments.