The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst: Apple Will Be Bigger Than IBM

Analyst: Apple Will Be Bigger Than IBM

by , 4:40 PM EDT, May 23rd, 2007

Apple's growth will lead to the company being bigger than erstwhile foe and partner IBM, according to Georges Yared, CIO of Yared Investment Research, in a blog post he made at BloggingStocks.com. Mr. Yared said that Apple's growth, fueled by new products and control of the customer chain, will see the company's stock hit a market capitalization higher than that of IBM, a company that does more than four times as much business as Apple.

"The direction of both companies are at a variance to each other and Apple is certainly enjoying the strength of a major product cycle," wrote Mr. Yared. IBM, on the other hand, "is stuck in the phase of 3-4% top line growth, defending its turf from erstwhile competitors and few new products in its pipeline."

Higher margins, higher growth, a better product pipeline, and other positive factors at Apple will all be rewarded by Wall Street, he said, even if Apple never surpasses IBM in terms of revenue.

His conclusion based on these factors is that, "With top line and bottom line growth at 20%+, higher and sustainable operating margins, major new product cycle and a strong-controlled distribution system, I feel that Apple will hit the magical $200 billion market capitalization number before IBM does and IBM currently has a $50 billion+ lead in the race."

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent Headlines - Updated February 28th

Sat,10:30 AM
IiPhoneography 101: Tripods for Your iPhone
Fri,8:54 PM
Apple Death Knell #68: Apple’s Stock Will Collapse Because iPhone Is Too Important
7:32 PM
Last Chance: Pay What You Want for the Learn to Design Bundle
4:30 PM
What to Expect During Apple’s March 9 Media Event
1:09 PM
TMO Daily Observations 2015-02-27: Apple Watch Media Event Smackdown
11:20 AM
Ericsson Sues Apple after Failing to Reach Patent License Agreement
10:01 AM
Analyst: Apple Watch Edition to Cost $950
8:55 AM
QuickTime & Yosemite: Recording Your iPhone or iPad Screen with iOS 8
Thu,8:36 PM
Apple Opens iWork for iCloud to Everyone
7:53 PM
This Is Why You Should Set Up Philips Hue LED Smartbulbs
7:15 PM
Apple Rumored to Bring Touch ID to Macs
4:40 PM
Last Chance To Save 55% On The Code Black HD Camera Drone
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!