In an interview with the Wall Street Journal, Trump said he might impose a 10% tariff on Apple's iPhone and notebook products. As a result, Apple's share price fell 1.9% in after-hours trading, according to Fortune's website.
Apple products are currently exempt from tariffs. But Trump said he might impose tariffs on Apple products: "Maybe, it depends on the tax rate. I mean, I'll charge 10% and people can easily tolerate that tax rate."
Apple's share price has fallen by 25% since reaching a high of $233.47 in early October. The decline was so steep, mainly because Apple warned investors of current-quarter revenue or lower than analysts expected, which included holidays and traditionally was the busiest time for Apple to sell.
Relevant reading: Microsoft overtook Apple for the first time in eight years: becoming the world's first company by market value
On the morning of November 27, Beijing time, according to The Verge, the US technology media, Microsoft briefly overtook Apple in market value on Monday to become the world's first in nearly eight years. Microsoft had a market capitalization of $812.93 billion, followed by Apple at $812.6 billion. At present, the two companies'market value competition is very fierce.
In 2010, Apple surpassed Microsoft for the first time. The New York Times commented that the moment marked the end of the old age and the beginning of a new era. Although Apple's share price has grown rapidly over the past five years, even exceeding $1 trillion at the beginning of the year, investors are worried about the sales of the iPhone, which accounts for 60% of the company's total revenue. When Apple warned Wall Street that it might not be able to meet its Christmas sales expectations, stock prices shook. Recent reports also show that Apple is starting to make the iPhone X again because of poor sales of the XS. Apple no longer discloses sales of devices such as the iPhone, the iPad and the Mac, making it difficult for analysts to accurately predict future sales of the iPhone.
Microsoft's share price has been doing well since Nadela became CEO in 2014. Nadela re-positioned Microsoft in the cloud computing arena, competing with major competitor Amazon. At the beginning of the year, Microsoft took the lead in overtaking Google in market capitalization, and last month it overtook Amazon. Compared with other technology giants, Microsoft's business is more diversified. For example, total sales of Windows, Xbox and Surface account for only 36% of Microsoft's total revenue, while 86% of Google's revenue comes from advertising.
Although Microsoft's Windows Phone failed, it did not have much impact on the company. Today, Microsoft focuses on cross-platform technology, cloud technology and artificial intelligence, and aims to gain a foothold in future quantum computing and hybrid reality computing. All these efforts are bound to put Microsoft under competitive pressure from Apple, Google, Amazon, Facebook and other companies.
Therefore, in the next few years, the name of "world market value first" may change ownership several times.