Today’s market listing shows that Apple’s value dropped by 3.7% taking its market valuation to $2.42 trillion. This 3.7% drop was all that Microsoft needs to become the world’s most valuable company. Presently, Microsoft has a market valuation of $2.43 trillion. Today, Apple released its fourth-quarter financial report. The financial report shows that Apple’s fourth-quarter net sales are $83.36 billion, an increase of 29% from the $64.698 billion in the same period last year. Apple also records a net profit of $20.551 billion. Relative to last year’s $12.673 billion profit, this is a significant increase for Apple. However, Apple’s revenue fails to meet the expectations of Wall Street analysts.
Apple’s CEO gives the reason behind its lower revenue. According to Cook, the major reason is due to the short supply of iPhones, iPad, and MacBooks. Due to chip shortages, there have been reports that Apple will reduce the production number of the iPhone 13 series.
Microsoft’s latest financial report shows that the company’s total revenue for the first fiscal quarter was $45.3 billion, an increase of 22% over the same period last year. The American manufacturer also records a net profit of $20.5 billion, an increase of 48% over the same period last year. Microsoft’s first-quarter revenue and profit both exceed analyst expectations, and its single-quarter profit exceeds $20 billion for the first time.
Chip shortages will not end this year
The chip shortage issue has been on for quite a long time. However, Apple has strong bargaining power in the market. Thus, the chip shortage has not been affecting the American manufacturer. However, there are so many uncertainties in the market presently, thus even Apple is affected. According to reports, Apple’s initial production plan for the iPhone 13 series this year is 90 million units. However, as a result of the chip shortages, Apple will reduce this figure to 80 million. Nevertheless, Apple’s suppliers have since denied this report claiming that Apple’s orders are intact.