Another bite at the Apple
Over the last 5 years, the same headline — Microsoft overtakes Apple to become the world’s most valuable company — has been true on a number of occasions: first in 2018, as iPhone sales stalled, then briefly in 2020, and again in late 2021. Each time, the crown has been Microsoft’s only fleetingly, as Apple stock has pushed higher and higher, soaring to become the first company valued at more than $3 trillion in Jan 2022.
This time, however, feels somewhat different. Primarily through its investment in ChatGPT’s creator OpenAI, Microsoft has cemented itself as a leader in the burgeoning space, integrating AI into almost all of its products, including its search engine Bing and much of the Microsoft software suite. The company is even building an “AI button” into its new keyboards, which will take users straight to Microsoft Copilot, a chatbot and generative AI tool.
Apple, meanwhile, is yet to really make its mark in the AI arms race. The company has also reported 4 consecutive quarters of slipping sales, cut prices in China, seen its latest smart watch dogged by a patent infringement, and needs to figure out a go-to market strategy for its new ~$3,500 Vision Pro. But, if history is anything to go by, Apple will find a way to get back on top.
