"Apple May Lose Top Market Cap Spot"…Weaknesses of Apple Highlighted by US Media
US Investment Media 'Barron's' Analysis
"AI Weak... Latecomers Face Greater Challenges"
Apple, with a market capitalization approaching approximately $2.8 trillion (about 3,735 trillion KRW), is facing warnings that it may soon lose its position as the 'world's largest market cap company.' This is due to its weak presence in artificial intelligence (AI)-related businesses.
On the 10th (local time), the U.S. investment media 'Barron's' cited analyst Laura Martin from market research firm Needham, reporting that "the situation of Apple, the number one market cap company, could change soon."
According to the media, Apple has maintained its position as the world's largest market cap company since 2011. Due to geopolitical instability triggering a high oil price crisis, Saudi Aramco, the world's largest oil company, briefly surpassed Apple in May last year, but Apple quickly regained the top spot.
However, analyst Martin believes that the new high-growth market of AI could negatively impact Apple's stock price. This is because competitors such as Microsoft, Google (Alphabet), and Amazon.com may be valued higher for their growth potential.
She stated, "Generative AI can redefine the competitive landscape of media and internet companies," adding, "Companies that possess LLMs (large language models) will be the clear winners."
Currently, big tech companies involved in AI provide LLM services through their own cloud servers. However, Apple does not have such a business model.
Martin pointed out that even if Apple tries to 'catch up' with other companies in the AI field in the future, it may be insufficient. She explained, "AI customers bear significant costs when switching providers," and due to the nature of the AI market, latecomers face high data costs, which will be unfortunate for them."
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Meanwhile, as of the 11th, Apple's market capitalization stands at $2.785 trillion (about 3,715 trillion KRW), ranking first in the world. Microsoft is at $2.483 trillion (about 3,312 trillion KRW), while Google and Amazon hold market caps of $1.723 trillion (about 2,298 trillion KRW) and $1.426 trillion (about 1,902 trillion KRW), respectively.
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