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 September 4th

Fri,3:10 PM
Limited-Edition ‘Code Black’ HD-Camera Drone: $69
1:48 PM
TMO Daily Observations 2015-09-03: Cleaning Up Apple Music, Listeners Comments on Apple TV Shows
11:52 AM
Analyst: “Hey Siri” Media Event no Game Changer for AAPL
10:19 AM
Runtastic goes Analog with Moment Fitness Tracker Watch
9:07 AM
iOS 9 Beta: Sharing and Saving Voicemails
Thu,10:05 PM
Joy of Tech Comic Nails the Difference Between Cable Providers and Customers on Apple TV
6:15 PM
Patriot Ready With a USB-C Flash Drive for Apple’s MacBook
5:20 PM
Apple Committed to ‘Cleaning Up’ Apple Music
5:05 PM
Retailer Screws Up, Shows Off HomeKit Compatible Hue Bridge Early
3:10 PM
Last Chance to Pay What You Want for the Mac Power User Bundle
1:49 PM
TMO Daily Observations 2015-09-03: Apple TV’s Missing Universal Search
12:03 PM
Apple TV Needs Universal Search
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!