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Apple No Longer World's Most Valuable Company

By - Source: BBC | B 58 comments

Market capitalization exceeded by oil and gas firm Exxon Mobil.

Apple is no longer the world's most valuable company, with oil and gas company Exxon Mobil's market capitalization exceeding that of the iPhone maker's.

The former's shares further decreased by more than $11 to settle for a share price of $439.23, resulting in a market capitalization of $412.7 billion. With a 16-cent gain in Exxon Mobil's stock, the firm's market cap was propelled to $417.2 billion.

Apple had boasted a market value of approximately $623 billion back in the August of 2012, which is when pre-iPhone 5 launch hype was escalating; the firm's shares then exceeded $700.

Following Apple announcing its 2012 fourth quarter results, its stock declined by 12 percent, which cut $50 billion in its market capitalization. Although it sold 47.8 million iPhone units, analysts were expecting more than 50 million due to the iPhone 5.

Since the launch of the iPhone 4 and its successor, the iPhone 4S, Apple has enjoyed astronomical success. Its profits surmounted the entire PC industry, with the company later becoming the world's most valuable firm due to the hype of the iPhone 5. Due to its success, an Apple subsidiary was named the world's largest hedge fund; the company had over $100 billion in cash.

Analysts strongly tipped the iPhone 5 launch to make Apple the first company in history to have a market capitalization of $1 trillion. However, after the smartphone's launch, stock prices have been continuously declining.

After the iPad Mini and iPad 4's launch, it suffered its worst stock price decline in four years. When 2013 arrived, reports emerged of Apple having reduced component and screen orders by 50 percent for the iPhone 5 due to weakening demand, although CEO Tim Cook has downplayed the speculation, but didn't deny nor confirm it.

Apple has also experienced the effects of Samsung's dominance in the market, as well as the performance of Google's Android platform.

Reports have suggested that a cheaper iPhone unit is in the offing, with a former CEO even stressing the significance of such a product. However, Apple responded by stating that it will never launch a cheap iPhone. It also defended the iPad Mini's premium price.

Apple co-founder Steve Wozniak even admitted that he's worried about the innovation at the company he helped form with Steve Jobs, which followed an analyst stating that the firm's creativity is clearly "sputtering".

 

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Top Comments
  • 48 Hide
    fyend , January 25, 2013 10:21 PM
    Still the world's most overvalued company.
  • 39 Hide
    rds1220 , January 25, 2013 10:07 PM
    Good! Keep dropping Apple lets see how low you can go.
  • 29 Hide
    JAYDEEJOHN , January 25, 2013 10:10 PM
    The petro industry is very diverse, and also not a fad.
    Look into exactly everything Exxon does, how many employees etc
Other Comments
  • 39 Hide
    rds1220 , January 25, 2013 10:07 PM
    Good! Keep dropping Apple lets see how low you can go.
  • 29 Hide
    JAYDEEJOHN , January 25, 2013 10:10 PM
    The petro industry is very diverse, and also not a fad.
    Look into exactly everything Exxon does, how many employees etc
  • 28 Hide
    edogawa , January 25, 2013 10:10 PM
    A step in the right direction.
  • 24 Hide
    vaughn2k , January 25, 2013 10:17 PM
    When the first iPhone was launched here in our country 2008, I never bought one... until the launch of iPhone 5, still I did not bought one, to me its so damn expensive. And I never regret it for not buying one. So long Apple.
  • 48 Hide
    fyend , January 25, 2013 10:21 PM
    Still the world's most overvalued company.
  • 14 Hide
    Daedalus12 , January 25, 2013 10:24 PM
    As for apple, it's about damn time.

    As for oil, it's a pretty volatile industry. They may be doing great now, but that could easily not be the case in a years time. Reserves get eaten up, exploration is crazy expensive, etc. Profits during good times means the ability to weather the bad...and people can keep their jobs.
  • 10 Hide
    wdmfiber , January 25, 2013 10:29 PM
    "first company to have a market cap of 1 trillion"

    deja vu... I remember hearing that way back in 1999. Then it was Microsoft, it got to 616 billion.
    I think it's going to many more years and a lot of inflation before a company hits that valuation.
  • 11 Hide
    A Bad Day , January 25, 2013 10:33 PM
    Shorting against Apple's stock as of now...
  • 21 Hide
    memadmax , January 25, 2013 10:40 PM
    I would also like to mention that apple was "most valuable" for only a year.

    Microsoft was "most valuable" for three years..........
  • 6 Hide
    A Bad Day , January 25, 2013 11:24 PM
    Daedalus12As for apple, it's about damn time. As for oil, it's a pretty volatile industry. They may be doing great now, but that could easily not be the case in a years time. Reserves get eaten up, exploration is crazy expensive, etc. Profits during good times means the ability to weather the bad...and people can keep their jobs.


    There's a state legislator in Texas that proposed banning energy efficient light-bulbs to boost local economy...
  • 5 Hide
    nuvon , January 25, 2013 11:32 PM
    Tim Cook sucks and in trouble? Maybe....
  • 14 Hide
    balister , January 25, 2013 11:33 PM
    colson79I just don't get the stock market when it comes to Apple. They beat expectations, had a record profit of 13 billion dollars for the quarter and the stock goes down.


    While their profit was 13%, their overall revenue was flat. Combine that with the fact that they're cannibalizing their own customers (a number of Mac users are no longer getting Macs, but instead getting iPads). So, one part of the company is doing well (iPad) and another is doing bad (Macs). And when you look at the pricing, every Mac user that switches to an iPad is about a $500 to $700 dollar loss.
  • 17 Hide
    jupiter optimus maximus , January 25, 2013 11:40 PM
    Well Apple, if you haven't been suing everyone on every step on the road, there would have been more people respectful of your products today than it is of today. You are nothing more than an arrogant over bloated company.
  • 13 Hide
    dozerman , January 25, 2013 11:46 PM
    How long til this falling apple hits issaic newton on the head and they try to patent gravity?
  • 8 Hide
    christarp , January 25, 2013 11:51 PM
    Why is everyone mad
  • 24 Hide
    Anonymous , January 25, 2013 11:54 PM
    When a company which sells only 4 luxury products has a market cap exceeding a company which sells one of the most valuable essential resources in the world, you know the share price is propelled by a bubble. The high price of Apple is based on an unrealistic assumption that Apple will be able to dominate the market for 10 years or more even at their premium price with 40% profit margin. Well, as expected, this is not true. Majority of the consumers are not fools and basic economic principles that lower price = more demand and economic of scales kick in. Apple has a good run but it is time for them to seriously rethink their future strategy. It will not be surprising that their market share will shrink to 10% again in the long run.
  • 17 Hide
    gamersglory , January 26, 2013 12:13 AM
    It's Because Apple has become a one trick pony. Hers a new I-[fill in the blank] we put a processor that is a bit more powerful not much more. same size and IOS which looks and feel the same as the last ver. we added new little background stuff. But for the most part it's the same and overpriced
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