Satya Nadella led Microsoft to become the world's most valuable company.

On Friday, Apple Inc lost its title as the world's most valuable public corporation to Microsoft Corp, as the iPhone maker's shares slid almost 2%.

Apple's sales were impacted by a $6 billion damage during the fiscal fourth quarter due to continuous worldwide supply chain issues, causing the company to fall short of Wall Street's forecasts. Tim Cook, Apple's CEO, stated that the impact will be considerably greater in the current Christmas sales quarter.

"Compared to less hardware-focused FAANG counterparts, Apple is also far more vulnerable to supply chain disruption," said Sophie Lund-Yates, equities analyst at Hargreaves Lansdown.

Apple's stock fell 1.8 percent to close at $149.80, giving the corporation a market worth of $2.48 trillion. In contrast, Microsoft's stock surged 2.2 percent to a record high of $331.62, giving the company a market valuation of $2.49 trillion at the end of the session.

Apple, which has repurchased $421.7 billion in stock throughout the years, announced a $90 billion share buyback in April. As a result, the company's outstanding stock pool continues to dwindle, and it completed its fiscal fourth quarter with 16.4 billion shares.

Microsoft's stock has risen 49 percent this year, driven by pandemic-induced demand for its cloud-based services. Apple's stock has risen 13 percent so far this year.

In 2010, Apple's stock market valuation surpassed Microsoft's as the iPhone established it as the world's leading consumer technology business. In recent years, the businesses have alternated as Wall Street's most valuable company, with Apple holding the title since mid-2020.

Analysts say Apple has handled the supply chain issue successfully, but with Cook's warning of increasing pressure, the company's performance could suffer as the holiday season approaches.

Microsoft, on the other hand, predicted a solid end to the fiscal year on Tuesday. However, it also cautioned that supply-chain issues will continue to plague critical units, including those that manufacture its Surface laptops and Xbox gaming consoles.