14 DAY TRIAL // Apple’s continuous struggle to reignite interest in iPhones is causing the company’s market valuation to plunge, according to the most recent figures.
And after Microsoft managed to overtake Apple for the first time earlier this month, the Cupertino-based tech giant has declined even more last week to fall to the third place after its Redmond rival and Amazon.
Microsoft and Amazon became the world’s most valuable companies on Thursday when they both surpassed Apple, a switch of places that confirmed the iPhone maker’s crisis is far from over.
Things slightly returned to normal on Friday when Apple secured the second place, but it failed to overtake Microsoft as well. The software company remained the world’s most valuable firm on Friday with a market valuation of $804.6 billion.
Apple was the runner-up with $799.6 billion, followed by Amazon with no less than $796.6 billion. Amazon is expected to overtake Apple once again this week, while Microsoft will most likely remain the number one company.
Slow iPhone sales
As for the reasons Apple declined from the world’s first company to be worth $1 trillion to becoming the third in the charts after rival Microsoft and Amazon, it’s believed the main culprit is the 2018 iPhone generation.
While Apple is relying more on services, sales of the iPhone, which continues to be the company’s number one device, have been well below expectations for the 2018 generation.
Cupertino adjusted orders at suppliers at least twice in an attempt to deal with the collapsing demand. The high price of new iPhones is considered the main factor that pushes customers to other devices. iPhone XR is available in the United States from $749, while the top-of-the-range iPhone XS Max can be purchased for $1,449. iPhone XR was positioned as the company’s more affordable 2018 iPhone.