{"id":161800,"date":"2025-04-22T17:12:55","date_gmt":"2025-04-22T16:12:55","guid":{"rendered":"https:\/\/www.financial-news.co.uk\/?p=161800"},"modified":"2025-04-23T06:36:40","modified_gmt":"2025-04-23T05:36:40","slug":"apples-decline-gives-microsoft-the-upper-hand","status":"publish","type":"post","link":"https:\/\/www.financial-news.co.uk\/apples-decline-gives-microsoft-the-upper-hand\/","title":{"rendered":"Apple\u2019s Decline Gives Microsoft the Upper Hand"},"content":{"rendered":"\n

Despite record growth in iPhone exports from India, Apple shares continued to decline, allowing Microsoft to come closer to becoming the most expensive company in the world once more. The development of Indian manufacturing has failed to offset investor concerns about the tightening of U.S. trade duties, while Microsoft is strengthening its position by dominating the field of artificial intelligence. This shift is also reflected in broader market trends \u2014 with Apple’s underperformance weighing on the Dow Jones Index<\/a>, where the company holds significant influence.<\/p>\n\n\n\n

In 2024, iPhone exports from India increased by 54%, reaching $17 billion. Now, every seventh iPhone in the world is made there. However, China is still Apple’s central manufacturing hub, accounting for 80% of global assembly.<\/p>\n\n\n\n

Despite successfully diversifying supply chains, Apple’s capitalization has fallen by 23% in recent months to $2.88 trillion. Investors are concerned about new US customs duties on electronics imports.<\/p>\n\n\n\n

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The Trump administration actively encourages the transfer of production from China to other countries, including India. However, the new duties may also affect Indian exports.<\/p>\n\n\n\n

In a situation with rising import duties from China, such a decision may be a good way to prevent a price surge of Apple products for American consumers for some time. Now, duties on all Chinese goods are staggering 145%. Meanwhile, India can get off with an increase in duties to 36%, which is still creating risks for Apple.<\/p>\n\n\n\n

Since half of Apple’s revenue depends on iPhone sales, investors fear lower margins due to rising logistics costs triggered by tariffs. However, such high volatility can create profitable opportunities for traders using automated trading software<\/a>. Given rising tariffs on imports from China, that kind of solution could be effective in helping investors mitigate losses from the rapid price rise.<\/p>\n\n\n\n

Microsoft remains one of the few companies in the American stock market whose business is more or less insulated from the impact of uncertainty with customs tariffs. The software giant has held the company’s status as the largest capitalization in the world since the beginning of 2024, but later gave way to Apple.<\/p>\n\n\n\n

While Apple is assessing risks, Microsoft is strengthening its position through investments in artificial intelligence across a range of its products.<\/p>\n\n\n\n