Apple has a natural handicap in the battle to regain its crown as the world’s most valuable company. Semiconductor shortages bite hard for the technology group, which generated more than three quarters of its revenue from hardware sales during the third quarter. By contrast, Microsoft, the new stock market king, has been powered by a rapid rise in cloud computing, which accounted for almost 40 per cent of its revenue.
Apple’s slip was predictable after it missed analysts’ revenue forecasts in the fourth quarter of its financial year. Covid-related manufacturing disruption in east Asia and chip shortages hit sales of the iPhone, iPad and Mac harder than Tim Cook, the chief executive, had expected.
Cook has given plenty for Apple bears to chew on.
