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:
Apple Market Cap Larger Than IBM, Intel, Fourth Behind Microsoft

Apple Market Cap Larger Than IBM, Intel, Fourth Behind Microsoft

by , 3:45 PM EDT, October 23rd, 2007

At the current US$186 per share, Apple's value as a company is US$162B. That's now larger than IBM ($159B) and Intel ($155B) and fourth in terms of computer companies behind only Cisco ($189B), Google ($208B), and Microsoft ($290B).

The value of a company, called the market cap, is the product of the outstanding shares times the share price.

In terms of price to earnings ratios, (P/E), those companies look like this:

  • IBM 17.1
  • Microsoft 21.8
  • Intel 24.8
  • Cisco 26.4
  • Apple 47.6
  • Google 52.9

Generally, a high P/E ratio is unfavorable because the price paid per earnings is greater. On the other hand, companies that have big earnings growth typically do have a higher P/E ratio.

Saul Hansel, in his New York Times Blog, wondered how Apple got to this point and whether the company can stay there. In the past, it seemed the PC war was over and Microsoft had won, but Apple's resurgence in other areas has brought the company back to a stronger position than ever before.

The common theme among all these companies is software. However, another important key is dominance in a particular market which can hold rivals at bay and keep margins high. The fact that Apple has developed such a strong loyalty amongst its customers and earned a reputation for innovation amplifies that.

Going forward, all these companies have an interest in digital entertainment. Even Cisco has purchased Linksys and Scientific Atlanta -- which makes TV set top boxes. If Apple can, like the competition, achieve and maintain a dominant position in key areas, as they have done with the iPod and music, leading to additional efforts with the iPhone and Apple TV, then it's likely Apple will maintain that position atop the most valuable computer companies.

Recent TMO Headlines - Updated May 23rd

Tue, 6:10 PM
How to Use New 1Password Travel Mode to Protect Your Data
Tue, 6:05 PM
There's a $399 3D Printer on Kickstarter
Tue, 4:59 PM
No PC Maker Can 'Go After' Apple MacBooks with Good Design
Tue, 4:27 PM
Samsung Galaxy S8 Iris Scanner Already Hacked
Tue, 3:00 PM
iOS 10: Disabling Slack Indexing Might Improve Spotlight Search - Here's How to Do It
Tue, 2:11 PM
Soverin Secure Email 1-Year Subscription: $10
Tue, 1:46 PM
IKEA Says Hello to HomeKit, Apple's Diversity Boss, Huawei Targets the MacBook - TMO Daily Observations 2017-05-23
Tue, 10:22 AM
IKEA is Making HomeKit Smart Lights Affordable for Everyone
Tue, 9:14 AM
Apple and Nokia Reach Agreement in Patent Licensing Dispute
Mon, 6:41 PM
Supreme Court Just Killed Marshall Texas Patent Troll Business
Mon, 6:00 PM
Apple Plans to Change Scrolling in Safari
Mon, 5:27 PM
The Good That Has Come Out of Apple's Mac Lapses
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!