Holding Google Inc. (parent company Google) have overtaken Apple by market capitalization at the opening of U.S. stock markets on may 12. Quotes from both companies at the opening of trading decreased, however, the market value of the iPhone maker began to decline more rapidly: as of 18:45 GMT paper Google lost 0.6%, the Apple is 2.5%. Capitalization of Google at that time was $495,9 billion, Apple — $492,6 billion (data from Bloomberg terminal).
At the opening of trading, Apple’s stock was down 3.1%, to $89,5 apiece, and it’s almost the minimum over the last two years, the value, the newspaper notes Market Watch. The disappointment of investors, the fall in revenue and profits of the Taiwanese company Foxconn Technology, which is the largest collector in the world iPhone. Foxconn’s net profit decreased in the first quarter of 2016 9.2%, to $847 million Is added to investors fears that global iPhone sales are slowing, says the publication.
The Japanese Nikkei also reported on the upcoming financial difficulties of Taiwan Semiconductor Manufacturing Company, a major producer of chips for the iPhone, points out Business Insider. The sources pointed out that in June—December 2016 the supply of chips for the iPhone 6s and iPhone 7 will drop to 70-80% compared to the same period in 2015. The Corporation Apple in the first quarter for the first time in its history recorded a decrease in the sales of smartphones, wrote. Also reduced sales of other Apple products — iPads and Mac computers.
Investors believe in the Alphabet because the company relies on breakthrough technology for the future, writes Market Watch. The company is working on the creation of unmanned vehicles, systems for smart homes Nest, leads the project to create a free broadband Internet access, Google Fiber, etc. Revenue, Other Bets (which includes non-core developments) in 2015 increased by 40% to $448 million, while operating loss increased 1.8 times, to $3.6 billion, However, investors treat developments of the Corporation as investments in the future and do not expect quick returns. “All this applies to looking for growth areas — now, in 2016, and in the future. New growth point — the main focus for the rapidly changing technology industry,” said Market Watch analyst firm FBR Capital Markets Daniel Ives.
Apple kept the status of the most expensive technology companies in the world with 2010: reaching a market value of $220 billion, the Corporation caught the title from Microsoft. Since then the capitalization of the iPhone maker rose more than doubled. In August 2011, Apple surpassed oil giant Exxon Mobil and became the most valuable company in the world, although regularly lose this status.
Google Inc. for the first time surpassed Apple in market cap this year — during the trading session on 2 February, right to the closing, Apple managed to regain the lead. The reason for the sharp growth of shares of Alphabet — 8% — then was the publication of the statements of the company for the fourth quarter of 2015. Alphabet financial results significantly exceeded expectations of analysts of wall street: in particular, quarterly revenue was $21.3 billion against the expected $20.8 billion.