Apple Returns to No.1 Market Cap Surpassing MS...Strong Performance of 'Vision Pro' (Summary)

Regained 1st Place After 6 Trading Days
Vision Pro's Strong Performance Key
Market Cap Battle Expected Between MS and Vision Pro

Apple has reclaimed its position as the company with the highest market capitalization, surpassing Microsoft (MS).

On the 22nd (local time) in the New York stock market, Apple's stock price closed at $193.89, up 1.22% from the previous trading day. Its market capitalization rose to $2.998 trillion, approaching the $3 trillion mark. On the same day, MS's stock price fell by 0.54%, closing with a market capitalization of $2.947 trillion, ceding the top market cap spot to Apple. This is the first time in six trading days since the 11th that Apple has held the number one market cap position. Apple has been rising for three consecutive trading days, supported by a strong performance in tech stocks.

The strong pre-sales of Apple's mixed reality (MR) headset, the Vision Pro, are credited with driving Apple's stock price increase on this day.

Guo Mingqi, a Taiwan-based analyst at TF Securities specializing in Apple, estimated that Apple sold up to 180,000 units of the Vision Pro over the past weekend. This figure far exceeds the initial sales forecast of 60,000 to 80,000 units. It also means that Apple sold about one-third of the annual sales forecast of 500,000 to 600,000 units in just two days.

Currently, the delivery period for all Vision Pro models is about 5 to 7 weeks, indicating high market interest. David Vogt, an analyst at UBS, a global investment bank based in Switzerland, estimated, “Assuming Apple ships about 400,000 Vision Pro units this year, the 2024 revenue will reach approximately $1.4 billion.”

However, since Apple's initial new products tend to be purchased mainly by enthusiasts, there is a possibility that demand may decrease afterward. The price is also relatively high. Based on 256GB storage capacity, the price is $3,499, while the 512GB and 1TB models are priced at $3,699 and $3,899, respectively. Including various accessories such as the product case and battery, the total easily exceeds $4,000.

Wall Street also predicts that Apple could easily lose its top market cap position. As the world rides the wave of artificial intelligence (AI), MS is regarded as leading the AI revolution among the “Magnificent Seven,” which refers to the seven major big tech companies listed on Nasdaq.

For the time being, Apple and MS are expected to frequently alternate in holding the number one market cap position. The first battleground will likely be the big tech companies’ Q4 earnings season from last year. MS and Apple are scheduled to release their earnings on the 30th and the 1st of next month, respectively.