Shares of the iPhone maker have dropped sharply over the past several weeks, and the decline has erased about US$300 billion in market capitalisation from the company, which crested at a record US$1.1 trillion valuation in early October. Microsoft's market value is about US$816.3 billion.
As reported by Bloomberg, Microsoft today caught up with and surpassed its competitor in terms of market capitalization, hitting a total valuation of $812.93 billion at around 1:05PM EST.
Now Apple became the first ever trillion d=dollar company ever known to the technological history of mankind.
Yet now, that very product is among the the challenges facing Apple, with concerns over weak iPhone demand pressuring shares to fall 25 percent from record levels.
Microsoft has managed to hold up better than other high-flying tech names after its first-quarter results showed that it continues to follow through on the vision of CEO Satya Nadella, who when he took over in 2014 said he wanted to focus on its subscription-based businesses and the cloud.
Apple shares fell 1.77 percent in extended trade after U.S. President Donald Trump told The Wall Street Journal that tariffs could be placed on laptops and mobile phones imported from China.
According to Rich Ross, a technical analyst at Evercore ISI, Apple's stock "has another 18 per cent downside", which could take the stock to $US140. "It is not bullish when the biggest stock in the world is in "falling knife" mode", he wrote to clients Monday. However, by the stock market's close, Apple was able to regain the spot with a market value of over $825 billion.
Buoyed by a broad rebound in USA stocks on Monday, Microsoft jumped 3.11 per cent to US$106.28, pushing its market capitalisation up to a record US$816 billion at mid-day. Amazon holds the third position in the world market with numbers about 736.6 billion dollars and Alphabet stands at the fourth position with nearly 725.5 billion dollars as their overall revenue.