Microsoft has become the most valuable US company with $753.3 billion in market capitalization, riding past Apple for the first time since 2010 when it came close to the Cupertino-based tech giant.
Apple, which became the first $1-trillion US company in August, came down to $746.8 billion on Friday, owing to lower-than-expected iPhonesales amid reports of its suppliers cutting cost and workforce. Amazonwith $736.6 billion is currently at third and Alphabet (the parent company of Google) with $725.5 billion is at the fourth spot.
The investors are now betting big on companies with robust Cloud services and software services which are witnessing an increased demand from big and small enterprises the world over for their digital journey, at a time when giants like Facebook and Google face intense scrutiny for users’ data practices.
Riding on its growing Azure Cloud, gaming and Surface laptop portfolio, Microsoft posted a revenue of $29.1 billion and net income of $8.8 billion for the first quarter of its 2019 financial results. Revenue was up 19 percent while net income increased by 34 percent. Operating income was $10 billion and increased 29 percent.
Microsoft’s gaming revenue increased 44 percent with Xbox software and services revenue growth of 36 percent while Surface revenue increased 14 percent. On the other hand, slower-than-expected demand has reportedly led Apple to direct its top phone assemblers, Foxconn and Pegatron, to halt a planned production boost for iPhone XR, a relatively cost-effective model that hit the shelves late last month.
Ming Chi-Kuo, an Apple analyst working with TF International Securities, said earlier this month that shipment forecast for the iPhone XR has been cut from 100
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