Microsoft surpasses Apple to become world's richest company
Microsoft has surpassed Apple as the world's most valuable company with a lead of more than $1billion.
The computing company briefly claimed the top spot on Monday, before consolidating its position on Tuesday when its shares rose 0.6 percent, pushing the company’s market value to $828.1 billion (£648.6 bn) at the close.
Apple's value is now $ 826,8 billion (£646.70 bn), down almost $2 billion (1,564,4 bn) since Monday amid concern about iPhone unit sales and disappointing forecasts.
The recent stock market dip has taken its toll on all technology companies including the FAANG companies Facebook, Apple, Amazon, Alphabet's Google and Netflix.
Apple stocks have gone down 23 percent since October while Microsoft's are down by a relatively modest 6.3 per cent.
Apple shares have dropped sharply over the past few weeks after the firm's November earnings announcements, when it reported strong profits but disappointing sales.
According to Bloomberg, investors have punished consumer based companies like Amazon and Apple more than companies that cater to businesses, like Microsoft.
Microsoft started to fall behind Apple more than a decade ago as computing shifted from desktop machines to mobile devices like iPhones.
The company tried to regain its footing by releasing its own phones and taking over Nokia's handset business.
But the rise of cloud computing changed Microsoft’s fortunes about five years ago.
The company invested heavily in data centers and other infrastructure to run applications and store data for corporate customers.
It offered subscription services on other devices like Apple and stopped making smartphone hardware while improving quality on PC's and tablets.
Now second behind Amazon Web Services in the cloud, this eliminates worries from investors about declining consumer spending on devices and increased regulation of digital advertising businesses like Facebook and Google.
The Nasdaq has fallen more than 12 per cent since the end of September, with high- flying tech names experiencing big drops.
Just last month, Amazon and Google parent Alphabet were also ahead of Microsoft in market capitalisation.