Apple loses 'most valuable company' title to Exxon Mobil

The stock value of Apple has continued sliding these past few days following lackluster financials for Q4 2012, with the tech giant losing the "most valuable company" title to Exxon Mobil today. Way back in August 2011, Apple took the crown from Exxon briefly, before cementing the position in the following days and months; they even reached a record share price of $700 in September 2012.

Now the share price for Apple sits at just $439.88 after falling 2.36% in the day's trading, bringing the market capitalization down to $413.04 billion. Meanwhile, Exxon Mobil's relatively steady stock price rose today to $91.73, bringing their market cap to $418.23 billion, higher than Apple's for the first time in years. Due to this change, Exxon Mobil now steals the crown of the most valuable company back from Apple.

Apple's stock price is now at the lowest value since January 24, 2012, effectively wiping away all the gains they had made for 2012. With increasing market competition and innovation, especially from the likes of Android and Samsung's Galaxy range, Apple is losing the edge they once held.

Source: Yahoo! via: 9to5Mac

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This just in apple stocks go up and down .
And if apple discontinued the iPhone and iPad totally they would still be over 12 times richer then Microsoft could ever dream of lol

TurboShrimp said,
This just in apple stocks go up and down .
And if apple discontinued the iPhone and iPad totally they would still be over 12 times richer then Microsoft could ever dream of lol
And fall like a rock.

Myself and other analysts predicted this, warned about it, and gave quite generous timelines of reasoning of how and why it will happen.

This is a pattern with Apple and the nature of the volatility of their product market model.

And yet the American government are still giving Exxon mobil MASSIVE tax cuts... because they clearly need them.

What is the point of this article? "Most valuable company" isn't an actual contest. Neither Apple nor Exxon care.

when apple become the most valuable company(passing MS) was it posted on Neowin?? No i guess. anything to make MS look better

This is what happens when you reach market saturation. Their products have started cannibalizing their own products rather than gaining market shares against their competitors'. This leads to some 'erratic' behavior such as acceleration of product cycles with small incremental updates and no real innovation.

Yip, and the fact that they sold large volumes with very little profit increase, shows that the older generation products are indeed cannibalizing the newer products.

And if they continue to release just minor updates like the iphone 5, then that trend will continue, seeing as there isnt any real incentive to spend more on a newer model.

where some of you see loss, some see opportunity. Personally I am not an income manager or a stock observer so I could be in the dark. But i honestly don't see how the stock is going down. income is solid, future sales are predictably solid, but yet the stock is down? Market anomaly? If anything instead of seeing a stock falling, could it be actually a great thing and time to buy? If I had my families wealth, I know I would buy a couple million at the moment given the price.

What is happening with Apple is that they are at a standstill. The iPhone 5 hardly offered anything new but an extra row of icons, the company always said the iPad formfactor was optimal but as soon as they release a model with smaller screen it starts eating into the 'optimal' model marketshare. Then the company produces results which are below expectations, yet tries to spin it like it's all good. The stock market may be a circus but the people there are not fools nor are they blindly following where Apple leads. The cracks are starting to show and since Apple has tried to cover them up they seem a a lot bigger all at once. As a final nail obviously the stock was way over valued riding the 'Steve Jobs is god' mantra. With Jobs gone Apple is obviously adrift struggling to find their place without the great leader. It has shown in all aspects of the company; products, presentations, marketing speak ans so on..

Would not be surprised to see the stock well below 400 before the year is up. And then it's still overvalued IMO.

They were overvalued and their silly investorswho expected a growth of 50% each year had a reality-check.

But IMO they're stil valued very high. I wouldn't say overvalued but imagine how their investors would react if they actually have a bad year some time in the future. The bubble could burst and its not because Apple doesnt create real value (it does) but because they attract idiots.

So it goes.

Apple will continue to be successful for years yet, but some other company will be the new stock darling.

The thing is though, the next major release of iOS and iPhone is going to be the bomb... Apple have hopefully realised things needs to change, the pressure is on hopefully they channel that energy wisely.. they've had a shake up, ive is on board.. it's all good.

There are many reasons why Apple's profit was only a tiny increase this quarter, the market always over reacts.

I've never believed the company was valued appropriately. Their whole profit is essentially based around 2 hardware products. When those products fall out of favor like any passing fad there is very little to keep the company churning. Samsung is the new fad. The Apple iFad is winding down.

I can't feel sorry for Apple either, they built their success on the back of claiming they were cool and the competition was lame. Now Samsung is convincing people they are cool and Apple is lame. You attract a fickle customer base by only going after people who need to identify with a cool brand. Eventually everything that was cool will be considered old and tired.

Jobs was right when he declared an open war against Samsung mainly because he knew that Apple is just a one-tricky-pony (or more than one but mostly a few tricks), if a flagship product fails then the whole business could fail.

IMHO, Apple should evolves and launch new products instead of simply launch new version of their old products.

Brony said
IMHO, Apple should *evolve* and launch new products instead of simply *launching* new version of their old products.
Agreed.

Let us hope they go further down in the upcoming year. So they see they can't just do anything, that will maybe end the patent wars, would be very nice. I hope Apple will go down, soo others can set them where they used to be: on the same pleace as 10 years ago.

Studio384 said
Let us hope they go further down in the upcoming year. So they see they can't just do anything, that will maybe end the patent wars, would be very nice. I hope Apple will go down, soo others can set them where they used to be: on the same pleace as 10 years ago.
Oh you poor, poor soul.. I tried to take this comment seriously, but Apple was in trouble 15 years ago in 1997, not 10. That would mean they were in trouble in 2003...

Studio384 said,
Let us hope they go further down in the upcoming year. So they see they can't just do anything, that will maybe end the patent wars, would be very nice. I hope Apple will go down, soo others can set them where they used to be: on the same pleace as 10 years ago.

Why do you want Apple to go down? If not for Apple, Android would not have even existed in its current form.

We need all the companies at level playing field. That would help to keep prices in check and boost innovation.

Please keep the juvenile comments to yourself.

sanke1 said,

Why do you want Apple to go down? If not for Apple, Android would not have even existed in its current form.

We need all the companies at level playing field. That would help to keep prices in check and boost innovation.

Please keep the juvenile comments to yourself.

I would've agreed with you had Apple remained the classy and respectable company it once was. That ship has long sailed and Apple, over time, became a company infested with greed, lies and an ugly holier-than-thou attitude - which unfortunately the pro-Apple parrots were quick to adopt too. They routinely commit IP theft and claim otherwise when caught. Everyone knows how they've dragged numerous companies to court over ridiculous stuff.

It's because of this I no longer have any sort of empathy or loyalty (for any brand, actually, not just Apple), you never know what kind of **** they try to pull off next.

dtourond said,
Oh you poor, poor soul.. I tried to take this comment seriously, but Apple was in trouble 15 years ago in 1997, not 10. That would mean they were in trouble in 2003...
Then I like you to read my comment again and post where I said I want Apple to be in trouble lik 5 years ago.

Studio384 said,
Let us hope they go further down in the upcoming year. So they see they can't just do anything, that will maybe end the patent wars, would be very nice. I hope Apple will go down, soo others can set them where they used to be: on the same pleace as 10 years ago.

What a dumb post. 1) Why do you care about the so called "patent wars" ? You know, it's not affecting you. You might think it is, but 99% of these patent wars are not affecting you or anyone you know. 2) It's none of your business. 3) the phone and PC industry wouldn't be as good as it is now if it weren't for Apple, and the tablet market wouldn't have existed. Sure, Apple didn't invent the idea of a tablet, but no one else made them popular. And the iPad is still the best one out there. You're just a silly little insect in the grand scheme of this stuff and it makes me chuckle when I read stuff like this.

Apple today is what IBM was in the '80s, the top company and highly regarded. Now we've seen that Android has changed from being the underdog to slowly taking over Big Brother (Apple).

The tables have turned. I really believe that Apple needs to come together and focus on what their next move is going to be. I think that they need to change the UI in iOS to something more up to date. I also believe they have to make some changes to the iPhone and the Mac line of Desktops and laptops.

Hopefully this year will be the return of Apple and the rebirth of what makes them really great, and that's being innovative.

I'm not sure Tim Cook is the kind of CEO to take a big enough risk on something that could be "the next big thing". Maybe they've got something in the works (I can't see a TV product being a great success simply because people don't change their TV's very often); only time will tell.

virtorio said
I'm not sure Tim Cook is the kind of CEO to take a big enough risk on something that could be "the next big thing". Maybe they've got something in the works (I can't see a TV product being a great success simply because people don't change their TV's very often); only time will tell.
That would have to be one helluva TV, I guess.

Funny how all the anti-Apple guys come out say things like, "it was bound to happen", or "Apple is going down hill fast". Really amuses me on this wonderful Friday night.

JHBrown said,
Funny how all the anti-Apple guys come out say things like, "it was bound to happen", or "Apple is going down hill fast". Really amuses me on this wonderful Friday night.

Apple has lost to so many companies. maybe?
Their product looks the same every year. Less radius, 10cm higher dose not make apple any good.

JHBrown said,
Funny how all the anti-Apple guys come out say things like, "it was bound to happen", or "Apple is going down hill fast". Really amuses me on this wonderful Friday night.

What about people like myself that have tracked Apple for over 25 years, and predicted it would drop?

Apple sticks to a business and product model that creates a surge, plateaus, and then drops - with no long term sustainability.

As wonderful as the iPhone is, it was built on a volatile and artificial product market that could not offer long term dominance. In just a few years since iPhone was introduced, Samsung and other MFRs are eating Apple alive.

Apple got another surge with the iPad, but again Amazon and other MFRs are killing the iPad.

This is without even considering how Microsoft will play out in the phone and tablet market, which is already hurting Apple directly with both touchscreen laptops and Tablets that are running Windows 8 Pro.

Apple does not understand nor are able to create long term product viability, as they continue to tie all hardware technology to software and any software innovations to hardware. This is inherently a fragile long term product model.

One quick example, because Microsoft does not TIE Windows to any hardware or PC brand, it will continue to be successful even after the current generation of hardware is obsolete.

It was bound to happen though. The share price was always over inflated. Jobs plays a part in it.

However, idiots suggesting they're going to die are exactly that. Idiots.

thenetavenger said,

What about people like myself that have tracked Apple for over 25 years, and predicted it would drop?

Apple sticks to a business and product model that creates a surge, plateaus, and then drops - with no long term sustainability.

As wonderful as the iPhone is, it was built on a volatile and artificial product market that could not offer long term dominance. In just a few years since iPhone was introduced, Samsung and other MFRs are eating Apple alive.

Apple got another surge with the iPad, but again Amazon and other MFRs are killing the iPad.

This is without even considering how Microsoft will play out in the phone and tablet market, which is already hurting Apple directly with both touchscreen laptops and Tablets that are running Windows 8 Pro.

Apple does not understand nor are able to create long term product viability, as they continue to tie all hardware technology to software and any software innovations to hardware. This is inherently a fragile long term product model.

One quick example, because Microsoft does not TIE Windows to any hardware or PC brand, it will continue to be successful even after the current generation of hardware is obsolete.

Your post is so full of horrible innacuracies ... I didn't get even past the half way mark without laughing and commenting on it. Killing the iPad? Jesus, go and look at Apple's earnings and sales figures. The stock market doesn't reflect the earnings. You'd think someone who predicts the downfall of Apple's stock would at least know all the facts.

It'll go back up whenever they launch a new product.

What they do need to focus on right now though, is innovation. Now that there are plenty of other alternatives (some of them inferior [ex. Android]), people no longer see the need for Apple devices as they can get the same things out of other devices.

dtourond said,
It'll go back up whenever they launch a new product.

They took a huge nose dive in a short time. Its not about them launching a new product anymore. They are being out done by the competition, WP, Android...and who knows what BB10 will do. There is a TON of competition now and Apple better switch it up. On the same note, Android will not be dominant forever either. Will be cool to see how things change.

Torolol said
But they need Steve Jobs to do that ...
Not necessarily. Steve did have a big impact on Apple. I do believe though, that given the people who work there, they could turn it around for the better if they really tried hard. Steve told them NOT to emulate him, but to do what they felt was right. I admire Apple and Steve's work but right now the people at Apple need to come together and really think hard at what their next thing is going to be.

They can't keep producing the same UI in iOS forever because now there are plenty of alternatives out there and the fact that they've become the second-most valuable company in the world proves that people are seeing other products that can do the same thing and at the same time is different then iOS.

What I hope to see from Apple this year is a re-imagined iOS and a major update to OS X (Microsoft did that with Windows 8, which I love). I'd also hope that they drop the prices of their PC's and laptops so that they're more reasonable and more realistic. The reason I say that is because the price is a bit steep for something that is not radically different then the alternatives.

techbeck said
They took a huge nose dive in a short time. Its not about them launching a new product anymore.
Disagree. I think if they did launch a new product, that could help them. Of course, I don't think that's the only thing they need to do, but that's definitely one of the things. Like I said to Torolol, Apple needs to focus on what they're going to do next. I strongly believe that they'll have to change a couple things if they want to stay on top. A couple of those things include iOS, the iPhone, the iTunes Store and their Apple Stores. I think they should do these radical changes now because they're still near the top and not near bankruptcy like in '90s.

techbeck said
They are being out done by the competition, WP, Android...and who knows what BB10 will do. There is a TON of competition now and Apple better switch it up.
That's right.

techbeck said
On the same note, Android will not be dominant forever either. Will be cool to see how things change.
Right again.

Nashy said,
Yeah, that one tiny little product should keep Apple in the market.... lol.

It's called iOS and it whips the competition for quality.

Please people, stop with this innovation crap. Does it work well? Yes. Who else is innovating? No one. Apple don't need to innovate some crazy new unheard of thing every year. They are currently just making things better. Android and Windows mobile aren't exactly innovating either. And don't start picking out products. I've got access to more phones than you do. Lol.

You say that so confidentially. Who's bagging Apple? I don't honestly think iOS iss the greatest thing sicne sliced bread, it's just a ****ing phone.

I don't use one anymore because I moved on. Android didn't cut it, but WP8 is doing a fantastic job.

Nokia is innovating. However, the word innovation is thrown around too much by people who try to sound like they know what they're talking about, only because they read it in an article on the net.

Nashy said
You say that so confidentially. Who's bagging Apple? I don't honestly think iOS iss the greatest thing sicne sliced bread, it's just a ****ing phone.
I'm beginning to question your IQ level.. iOS is the OS running inside the iPhone. iOS is not a phone.

Oh give me a break, you're argument against what I had to say was the fact I wrote phone. Bottom line is, we are talking about mobile operating systems, I was talking about phones, so the point is still there to be made.

I don't question your IQ, because the fact that this is the argument you try to mount, proves to me that yours isn't all that high.

Nashy said,
Oh give me a break, you're argument against what I had to say was the fact I wrote phone. Bottom line is, we are talking about mobile operating systems, I was talking about phones, so the point is still there to be made.
If you're talking about iOS, don't say that it's "just a ****ing phone".. A phone is a phone, an OS is an OS. They are two separate things.

I believe it's all because of the past lawsuits and inabilities to acquire certain patents that could have gained them so far in the mobile market.

M_Lyons10 said,
The difference being that Apple was ridiculously overvalued and is steadying... Exxon isn't.

I am curious, what is the reasoning to consider Apple overvalued? The PE is very low, lower than MS, they just hired a key guy...... Personally I started to buy some shares although at the moment my immediate target is BB.

The majority of their revenue comes from the iPhone and several related products in a market that fluctuates rapidly. Their products are tied in with the OS meaning they don't have the flexibility of Hardware manufacturers who can simply start using a new OS. Or the flexibility of Google or Microsoft who have several big hardware clients. BlackBerry and Nokia's downfall has shown how weak that model is when customer demand starts to decline which has already started for Apple.

Gaffney said,
The majority of their revenue comes from the iPhone and several related products in a market that fluctuates rapidly. Their products are tied in with the OS meaning they don't have the flexibility of Hardware manufacturers who can simply start using a new OS. Or the flexibility of Google or Microsoft who have several big hardware clients. BlackBerry and Nokia's downfall has shown how weak that model is when customer demand starts to decline which has already started for Apple.
Just so we're clear, you think Apple is a single pillar company and Google isn't. Oh and you think Google makes money off of android?

I agree Apple is overvalued not because of their PE ratio. But because of the limited source of the majority of their revenue they are easily toppled. Android is working them over in their two biggest markets. If that continues and Microsoft makes inroads you'll see a repeat of Apple's decline in the 90s. Basically Apple would have to keep insane margins and growth to maintain their PE and that future isn't looking likely.

MrHumpty said,
Just so we're clear, you think Apple is a single pillar company and Google isn't. Oh and you think Google makes money off of android?

I agree Apple is overvalued not because of their PE ratio. But because of the limited source of the majority of their revenue they are easily toppled. Android is working them over in their two biggest markets. If that continues and Microsoft makes inroads you'll see a repeat of Apple's decline in the 90s. Basically Apple would have to keep insane margins and growth to maintain their PE and that future isn't looking likely.


haha, Microsoft makes more money of Android then Google does.
However most phones do give Google allot of privacy information they sell, so they probably do make quite some money from it. Be it indirectly.

Shadowzz said,

haha, Microsoft makes more money of Android then Google does.
However most phones do give Google allot of privacy information they sell, so they probably do make quite some money from it. Be it indirectly.
Agreed. At best they get search revenue and personal information with some app revenue.

Aaron Olive said,
Yeah right, now's a good time to buy into the stock, it's gonna surge back over the summer.

I wouldn't hold your breath. It is WAY over inflated and with changing and emerging markets it will crash hard or reinflate either way, not a safe investment!

Aaron Olive said,
Yeah right, now's a good time to buy into the stock, it's gonna surge back over the summer.

You got anything to back that up? If not don't give this kind of stupid advice to people. They'll keep bleeding stock prices until it reaches it's actual level. Somewhere 350-400/share.

It's not surprising, many predicted that Apple will go downhill once Steve Jobs died, looks like its happening slowly but surely.

Iphone 5 was very 'meh', couple with the fact that Android is getting ever bigger and better and now even windows phone provides a decent alternative.

Hitman2000 said,
It's not surprising, many predicted that Apple will go downhill once Steve Jobs died, looks like its happening slowly but surely.

Iphone 5 was very 'meh', couple with the fact that Android is getting ever bigger and better and now even windows phone provides a decent alternative.

It's not so much the phone but iOS itself, it's pretty much looked the same since 2007, now that Sir Ive, the man behind the hardware is also in charge of the software we should see some changes for the better.

Considering the placement of the dot on the graph, and that Steve Jobs died Oct. 5th of 2011, the evidence here shows quite the contrary if anything...

Yes - and he got a knighthood from the queen here in the UK a year or so ago which makes him a sir

I've been saying the same thing for a while - Apple have been resting on their laurels now for a good few years releasing purely evolutionary upgrades. Love or hate them, they used to make some exciting products that were really on the cutting edge of design and performance.. though not often always at the same time That magic has, for me, gone some time ago.. they really need to get a completely new product or a massive, massive overhaul of an existing product out the door soon.

Aaron Olive said,
[..] now that Sir Ive, the man [..]

Man, it's alright, he is not your master, now slavery is illegal so you're free to not call him "Sir" .

Calling someone Sir doesn't make you a slave, often you'll call your boss Sir, if you work with people you often call then Sir.

Aaron Olive said,
It's not so much the phone but iOS itself, it's pretty much looked the same since 2007, now that Sir Ive, the man behind the hardware is also in charge of the software we should see some changes for the better.

The problem is that people focus too much on the look and not its function. It's one of those can't see the forest for the trees type deal.

Yeah, a lot of changes have not been made to the look of the home screen besides new trim and paint, but the same case can be made for Android. The look on my home screens going from Froyo to Jelly Bean hasn't been that drastic, but a lot of functionality has been added to both OS since their initial release. I mean, if you think iOS has remained unchanged, then you'll have no issues running iPhone OS 1, or Android 1.0 if that's you flavor.

I think the only thing Ive needs to do is make iOS look more uniformed.

dead.cell said,
Considering the placement of the dot on the graph, and that Steve Jobs died Oct. 5th of 2011, the evidence here shows quite the contrary if anything...

Not really. ITs not like people stopped buying apple the instant Steve Jobs died, it was more of a long term projection that over the period of next 3-5 product releases apple will suffer, and that's exactly what's happening.

Also consider the fact there will be a new iphone 5 'S', iphone 5 failed to make any waves now the market is smarter and they are still trying to pull this "s" crap.

Jobs could sell ice to eskimos, tim cook is not at the same level and people will see past the 's' version of 'new' iphone.

Yes Apple is doomed...

Their guidance for their second quarter is $41B to $43B which is just $3B shy of their 2012 1st quarter which is $46B.

Anyway any tech company can easily make $41B in a quarter in revenue.

recursive said,
Why do they call the guy Sir? Is he English?

Yes he is english. He's also a Knight Commander of the British Empire...therefore "Sir"