Apple has managed to overtake Microsoft to re-become the world’s most valuable company, partially thanks to high expectations for the new-generation iPhone.
On Friday, Apple reached a market valuation of $1.065 trillion, while Microsoft, the tech giant that has long been the leading name, fell to second place with $1.063 trillion.
As BI notes, Microsoft also declined 2.2% due to stock sell-off, while Apple’s decline was much smaller at 0.4%.
One of the reasons Apple is once again the most valuable companies in the world is the high expectations for iPhone 11, which according to people close to the matter, is selling better than anticipated. Apple shares traded at $235.37 on Friday, which represents an increase of 50% year-to-date.
iPhone 11, the winning card
Apple launched iPhone 11 in September, and all three models have until now sold like hotcakes. This year’s lineup includes the iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max.
iPhone 11, which is a successor to iPhone XR, comes with a 6.1-inch LCD screen and is actually cheaper than the model it replaces by $50. In the United States, iPhone 11 starts at $699.
Analysts revealed that iPhone 11 sold particularly well in markets where mid-range Android dominated smartphone sales, including China and India.
Reports from the supply chain recently revealed that Apple wants more iPhones to be produced by the end of the year, as the company anticipates growing sales, especially during the holiday season. At this point, all iPhones ordered from Apple come with a November shipping date in the United States due to limited inventory.
All these high expectations for the iPhone have contributed to an increase in the price of Apple stock, eventually pushing the company past Microsoft in the world’s most valuable companies rankings.
It remains to be seen if Apple can secure the leading position in the long term, especially given Microsoft’s aggressive investments in the cloud business.