Microsoft Overtakes Apple as World's Most Valuable Company

Apple has lost its title as the world’s most valuable company to its longtime rival, Microsoft, amid growing investor concerns over the impact of sweeping U.S. tariffs on Chinese imports.

In recent days, Apple’s stock price has dropped by more than 20 percent, wiping out about $773 billion from its market value.

As a result, Apple’s market capitalization now stands at $2.593 trillion, while Microsoft’s valuation has risen to $2.636 trillion.

This shift comes as Apple, the maker of the iPhone, faces mounting challenges related to the tariffs imposed by US President Donald Trump’s administration.

Starting today, total tariffs on imports from China have surged to around 104 percent, fueling fears over increased supply chain costs.

According to The Wall Street Journal, Apple is now planning to ship iPhones from India to the United States in an effort to bypass the steep tariffs on Chinese-made products. Imports from India are subject to a 27 percent tariff compared to 104 percent for those from China.

Meanwhile, Trump administration officials are intensifying pressure on Apple to relocate its production to US factories.

US Commerce Secretary Howard Lutnick questioned why Apple continues to manufacture its products in China, suggesting that automation and local labor could replace low-cost overseas workers. He added that this move could create "millions" of jobs within the United States.

Dan Ives, a financial analyst at Wedbush Securities, told CNN that no company stands to suffer more from the tariffs than Apple. He warned that manufacturing iPhones in the US could drive the price of the device up to $3,500. Ives also estimated that Apple would require $30 billion and at least three years to shift just 10 percent of its supply chain to the United States.