Microsoft has caught up to Apple in market valuation

Microsoft has caught up to Apple in market valuation

The last time Microsoft was more valuable than Apple was in 2010.

Shares of the iPhone maker have dropped sharply over the past several weeks, and the decline has erased about $300 billion in market capitalization from the company, which crested at a record $1.1 trillion valuation in early October. At the same time, shares of Apple rose 0.63 per cent, leaving its stock market value at $823-billion.

Microsoft has lost some public mindshare to Apple in the past few years as the Android vs iOS battle became as important at the Mac vs PC one, and Microsoft failed to capture the mobile market. For now though, Microsoft is doing a little better than Apple.

Yet now, that very product is among the the challenges facing Apple, with concerns over weak iPhone demand pressuring shares to fall 25 percent from record levels. When he took over in 2014, Nadella said he wanted to focus on its subscription-based businesses and the cloud.

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Microsoft challenged Apple's title as the most valuable USA company on Monday, as the iPhone maker weathered a slump that drove the tech giant into a recent bear market over concerns related to smartphone sales in the critical holiday season.

But Apple has suffered more than other Silicon Valley stalwarts, down 23 per cent since it warned on November 1 that sales for the crucial holiday quarter would likely miss Wall Street expectations. "It is not bullish when the biggest stock in the world is in "falling knife" mode", he wrote to clients on Monday.

Microsoft's cloud-computing unit Azure has grown at a blistering pace; it's up 76 percent annually and remains the biggest competitor to Amazon.com, Inc. While MSFT began to see a pick up in market cap again in the early 2010s, it couldn't keep up with Apple.

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