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 May 25th

Wed,3:10 PM
How to Deauthorize All Devices in iTunes 12
Sun,12:13 PM
MGG 554: Sleepy Macs Sometimes Go To Work
Sat,10:30 AM
How to Decide Between a Smartswitch and a Timer for Your Smarthome
Fri,6:47 PM
1987 Apple Promo Video Hints at Hubris of the 1990s
3:29 PM
Blur Premium Privacy Protection Lifetime Subscription: $49.99
2:55 PM
Apple May Finally Be Ready to Reinvigorate the iPad
2:39 PM
Google Study Finds ‘Security Questions’ Next to Useless
1:08 PM
TMO Daily Observations 2015-05-22: Fingerprints to Google and Apple Watch Heartrate Monitoring
11:16 AM
Apple Watch OS Update Reduces Background Heart Rate Monitoring Frequency
10:10 AM
Apple’s App Store Needs Cold Storage
8:30 AM
Apple Watch: Three Tips on Contacting Your Pals
Thu,5:44 PM
Promotional Apple II Video with Steve Jobs, Steve Wozniak, Byte Shop
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!