Jakarta, CNBC Indonesia – The IDC report shows that Apple will become the world's newest 'cellphone king' in 2023. The Cupertino manufacturer will be able to shift the position previously held by Samsung for a decade.
However, on the other hand, Apple lost its throne as the most valuable company in the world. That position is now held by Microsoft.
Microsoft's market surge is driven by the company's focus on generative artificial intelligence (AI), a sector that is increasingly gaining investor support.
Microsoft along with Nvidia and Amazon are placing great emphasis on the use of AI. All three have experienced quite high market surges over the last year. In particular, Microsoft's market value has increased by more than US$1 trillion.
Analysts describe this shift toward AI as reminiscent of the early 2000s, when technology and internet companies began to replace consumer and financial companies.
According to LSEG data, Microsoft's market capitalization reached US$2.887 trillion, the highest ever. Meanwhile, Apple's market capitalization was US$2.875 trillion at the close of Friday (12/1) after peaking at US$3.081 trillion on December 14.
Microsoft has incorporated OpenAI technology into its software suite, a move to help fuel a boost in its cloud business in the July-September quarter.
Quote Reutersthe company's leadership in AI also creates an opportunity to challenge Google's dominance in web search.
On the other hand, Apple is facing challenges in China with sluggish sales. In early 2024, iPhone sales in China will fall by 30% compared to the previous year.
Even though on a global scale the iPhone business will grow 3.7% throughout 2023 yoy, the pressure in China cannot be ignored.
China is the main market for Apple and the largest cellphone market in the world. Apple has experienced problems ranging from issues of blocking within Xi Jinping's government, to the rise of Huawei which has attracted market interest.
[Gambas:Video CNBC]
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