Apple has lost its position as the world’s most valuable company amid a broad sell-off of technology stocks and a rise in the price of oil. Saudi Arabian oil and gas producer Aramco has reclaimed the top spot from the Cupertino based tech giant for the first time in almost two years. Also Read - Apple Watch Series 8 to feature new design with flat display, may launch alongside iPhone 14
Aramco, the largest oil-producing company in the world, reported a market capitalization of $2.43 trillion. Meanwhile, Apple’s market capitalization dropped to $2.37 trillion. Also Read - Top 5 Accessibility features coming to Apple devices this year
Over the last five trading days, Apple‘s shares have declined by $13.51 or 8.66%. Just after the regular trading session closed on Thursday, Apple’s market cap was down to $2.31 trillion. Since it set a 52-week high at $182.94 on January 4th, Apple has seen its value evaporate by 23%. On the other hand, Aramco’s shares are up 27% since the start of the year, reports PhoneArena. Also Read - Apple hasn't launched its AR/VR headset yet: Here's why
“The shift in rankings reflects the prevailing uncertainties in the global economy, arising from the Russia-Ukraine war, supply chain constraints, rising inflation, and consequently soaring energy prices. As a consequence, investor risk appetite is shifting from tech and other sectors. Over the foreseeable future, Saudi Aramco will continue to benefit from the ongoing shift from Russian energy to alternative energy sources,” Prabhu Ram, Head- Industry Intelligence Group at CMR, told BGR.in.
“I strongly believe that the future outlook for Apple continues to be robust, despite some supply chain challenges,” Ram added.
Recently, Aramco reported a 124% increase in its net income after recovering from pandemic-inflicted losses.
Apple registered 20 per cent growth in the global smartphone market from the first quarter of 2021 till the same period this year. According to a report by Europe-based online shopping platform Burga, Apple is gaining ground in market share despite the company’s smartphones mainly being considered expensive compared to competitors.
Amid the company’s growth, the smartphone space is still faced with challenges, including component shortages, price inflation and the overall economic uncertainty resulting from the pandemic recovery.
Besides the iPhone 13 series capturing the consumer demand, the iPhone SE is also standing out as a critical mid-range smartphone driving Apple’s market share.
Recently. Apple said it sold iPhones worth $50.6 billion in its March quarter — a 5 per cent increase year-over-year — despite global supply issues rising from the Russia-Ukraine war and China lockdowns.