Apple has been overtaken by Microsoft as the world’s most valuable public company, according to a report by CNBC. A steep four-day decline in Apple’s stock value has erased 23% of its market cap, reducing it to $2.59 trillion. Meanwhile, Microsoft closed Tuesday at $2.64 trillion, regaining the top spot.

Trump’s Tariff Policy Hits Apple Hardest

The market decline follows a broad set of new tariffs announced by President Donald Trump. The policy imposes fresh import taxes on goods from over 100 countries, shaking investor confidence. The Nasdaq index has dropped by 13% during the same period, but Apple has been disproportionately affected due to its large manufacturing base in China.

iPhone Prices May Surge

Analysts at UBS warn that Apple may need to increase iPhone prices to offset higher import costs. The upcoming iPhone 16 Pro Max could see a price jump of up to $350 in the U.S. if the tariffs remain. Since iPhones contribute around 50% of Apple’s total revenue, the financial impact could be substantial.

Microsoft Shows Greater Resilience

Microsoft appears to be weathering the volatility better. While the company issued modest revenue forecasts in January, analysts at Jefferies describe it as one of the “more insulated” tech firms, thanks to its focus on software and enterprise cloud services. These areas are less affected by import tariffs compared to Apple’s hardware-centric business model.

Ongoing Market Rivalry

Apple and Microsoft have frequently alternated positions at the top of the corporate valuation charts. Microsoft was the leading public company in early 2024, until Apple briefly reclaimed the spot—only to lose it again during the current market downturn.

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