It generated a capital of about 753.3 billion USA dollars in the year 2010 and became the most valuable organization in the United States.
Apple obviously was in no mood to lose it again to Microsoft but as its iPhone sales were not as par with the expectation, the tech giant finally met the defeat by slipping one position in the list of the top US-based company. The slump took the company's market cap briefly below that of Microsoft Corp.'s on Monday, the first time in more than eight years that Microsoft was worth more by this metric. Apple was even lauded for being the first USA company to have a $1 trillion valuation just this past August. While Microsoft dominated Apple during the 80s and 90s, Steve Jobs finally one-upped Bill Gates with the release of the iPod and then the iPhone in the mid-2000s.
Yet now, that very product is among the the challenges facing Apple, with concerns over weak iPhone demand pressuring shares to fall 25 percent from record levels.
The Nasdaq has fallen more than 12 percent since the end of September, with high-flying tech names experiencing big drops.
Buoyed by a broad rebound in U.S. stocks on Monday, Microsoft jumped 3.11 per cent to US$106.28, pushing its market capitalisation up to a record US$816 billion at mid-day.
There could be more pain ahead for the stock, which could dethrone it from the number-one spot in a more decisive fashion. It was joined a month later by Amazon.
Earlier, Apple's stock fell, and both companies' market capitalization were within about $3-billion of each other, putting them at virtually the same value.
According to Rich Ross, a technical analyst at Evercore ISI, Apple's stock "has another 18 percent downside", which could take the stock to $140.