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Microsoft reclaimed the top spot as the world’s most valuable company by market capital at the start of the year, overtaking technology rival Apple, thanks to its investments in AI and stable of B2C and B2B brands shifting peoples’ perception.
Microsoft reached a new high of $2.887 trillion, with Apple in second place with $2.875 trillion. Apple’s market cap peaked at a record $3.081 trillion in December, but it has since fallen behind Microsoft due to the latter’s investments in, and integration of, artificial intelligence across its suite of technology tools and growth in demand for its Azure cloud computing service.
“Market cap is a function of two sets of perceptions: the attitudes to the brand of the consumers and business decision makers that choose and buy products; and the attitudes to the company of investors and the financial world that look for future profitable revenues,” said Graham Staplehurst, director for Kantar BrandZ, Thought Leadership.
“Microsoft has been successful at addressing both audiences. Its investment in OpenAI and ChatGPT is proving a winner: ChatGPT’s brand is extremely well positioned among consumers.”
AI and marketing’s moment within Microsoft
The movement in Microsoft’s financial performance is directly tied to its marketing, according to Interbrand’s global director of brand economics Greg Silverman. But Apple might not stay behind for long.
“Microsoft’s rising expectations occurred at the time when expectations about Apple dropped for the first time in years,” said Silverman. “With revenue growth slowing, patent issues impacting sales, and regulatory and legal proceedings bringing forth business model disclosure that has not been previously known, investor confidence in Apple dropped.”
Microsoft’s longtime chief marketing officer Chris Capossela stood down at the end of 2023. Yusuf Mehdi has been promoted to evp and consumer chief marketing officer, charged with overseeing end-user experiences having launched several of its AI-powered services to lead Microsoft Copilot product marketing. He will also continue to lead the company’s search, ad, news, devices and creativity customer solution areas.
“In a new era of tech giants and proliferating competition, Microsoft leaps forward by embracing change in the radical age of AI,” explained Yael Alaton, partner for vision and strategy at Pearlfisher London.
“As a systems thinker, [Microsoft evp and CMO] Takeshi Numoto represents this as he brings his unique experience and influence, looking at breakthrough technology and its impact on people’s lives to rebuild the desirability of Microsoft.”
