Apple Market Value Slips Behind Microsoft Amid Market Turmoil
Apple Inc. has lost its long-held position as the world’s most valuable publicly traded company, following a sharp decline in its stock price linked to escalating trade tensions between the U.S. and China. On Tuesday, Apple shares tumbled by 5%, dropping the tech giant’s market capitalization below $2.6 trillion. In contrast, Microsoft’s market cap edged ahead to $2.65 trillion, reclaiming the top spot in global market valuation.
This decline comes just one day before new U.S. tariffs on Chinese imports are scheduled to take effect. Apple’s heavy reliance on China for product assembly—approximately 90% of its devices are built there—has made it particularly vulnerable to rising trade barriers. Investors are increasingly anxious about how these tariffs could impact Apple’s production costs and global sales.
Trade War Fallout Hits Tech Giants Hard
Apple’s stock has plummeted by over 20% in the four trading sessions since President Donald Trump announced a 34% tariff hike on Chinese goods, effective April 9. China swiftly retaliated with an identical 34% tariff on U.S. imports, prompting Trump to threaten an additional 50% tariff hike. These back-and-forth measures have triggered widespread concern across global markets, especially for U.S. companies with deep ties to China.
Apple market value was granted tariff exemptions during the previous U.S.-China trade conflict under the Trump administration, it has not received similar protections this time. As a result, Apple has become the worst-performing stock among the so-called “Magnificent Seven” tech giants in the past week. Tesla, the second-worst performer in the group, saw a 21.5% drop during the same period. Other major players like Amazon, Meta Platforms, and Nvidia also experienced significant declines, ranging between 12% and 13%. Even Alphabet and Microsoft were not spared, with losses of 7.7% and 7.2%, respectively.
Apple’s Market Value Wipeout Sends Shockwaves
Apple’s sharp downturn has erased an astonishing $775 billion from Apple Market Value in less than a week. To put this in perspective, that loss is larger than the entire market capitalization of Tesla and exceeds the valuation of all but seven U.S. publicly traded companies—including Apple itself.
The loss in investor confidence reflects more than just tariff concerns—it also highlights the growing unease over Apple’s dependence on China, both as a manufacturing hub and as a key consumer market. With no clear resolution in sight to the renewed U.S.-China trade dispute, analysts warn that Apple could face further volatility if production disruptions or additional retaliatory measures are introduced.
As Apple grapples with this shifting geopolitical landscape, the company may need to reevaluate its supply chain strategies and seek greater diversification to withstand future shocks. Meanwhile, Microsoft’s more geographically diversified business model has allowed it to weather the storm more effectively, reclaiming the crown as the world’s most valuable company—at least for now.
