The new king is here!!!
Alphabet (the parent company of Google) surpassed Apple as the most valuable company in the world. Apple used to hold the title for four years, but yesterday that changed. The newly founded company didn’t take long to reach the top. Alphabets’ success in combination with Apples’ iPhone sales drop lead to the inevitable dethronement of Apple Inc.
Google’s reorganization
In 2015 Google has decided to reform its structure by creating a parent company, called Alphabet, which would manage Google’s projects separately. Since the creation of Alphabet Google has been split into two parts. The first part is responsible for Google Search Engine, YouTube and other related parts of the company, whereas the second part focuses on the “shoot to the moon” projects of Google, like Google X research, self-driving cars etc. Although the second part of Alphabet doesn’t offer any revenue yet, since it’s mostly about investing in innovation and development, Google’s reorganization as a company has clearly lead to a more clear and stable market identity.
The inevitable dethronement
After releasing its Q4 2015 report Alphabet shares increased rapidly on Monday making its combined share value worth $554 billion, whereas Apple had a value of about $534 billion. Apples share value has dropped after announcing a revenue drop. On the other hand Alphabet has increased its revenue mainly in the field of Advertising.
The fall of Apple
Apple has held the title of the most valuable company in the world since overtaking Exxon Mobil in 2011. For many years it looked that Apple would never lose its place this easily, so what happened? Is this an omen for what’s coming? Apple has not been doing as hot as it used to. IPhone sales have dropped which might prove to be very bad for Apple since the technological giant relies on smartphone sales for almost half its revenue. Adding to that the decrease in demand for Apples signature phone in the market of China it’s fairly easy to see that something’s wrong. So is this a sign of the beginning of the fall of Apple’s empire? Of course not. This is kind of a hiccup for Apple. That’s all. Although things seem bad for Apple at the moment I am sure that they will find their way back to the top sooner or later.