iPhone Maker Apple loses Crown as the most valuable company in the world, knows what’s wrong
Apple reportedly plans to move part of its iPhone production from China to India to reduce the impact of rising costs.
According to CNBC, iPhone Maker Apple is no longer the most valuable company in the world, as Microsoft has surpassed Apple’s stock price after it plummeted. Microsoft’s market value reached $2.64 trillion on Tuesday, and Apple’s price was $2.59 trillion.
The decline was largely driven by former President Donald Trump’s announcement of higher tariffs on imports from more than 100 countries. Apple’s heavy reliance on China’s supply chain and manufacturing industry makes it particularly vulnerable to these changes.
Broader market concerns, including concerns about recession and rising consumer costs, also played a role. The Nasdaq Composite Index has fallen 13% over the past four trading days, reflecting this uncertainty.
UBS analysts predict that if Trump’s tariffs are fully passed to customers, the price of the next iPhone 16 Pro Max in the United States could increase by $350. This has sparked further attention to Apple’s dependence on China’s manufacturing industry.
To address rising costs, Apple reportedly plans to shift some iPhone production from China to India, according to a report from the Wall Street Journal. The move is intended to reduce the financial impact of the new tariffs.
But Apple officials say local U.S. manufacturing is more expensive than paying tariffs. Despite Trump’s push for U.S.-based production, Apple is focused on its long-term supply chain strategy centered on China, although it acknowledges the need for short-term adjustments.
Meanwhile, concerns over rising prices have led to increased demand for iPhones, with more and more customers rushing to Apple stores across the United States to buy their devices.
