Apple Tops Microsoft’s Market Cap

| Apple Stock Watch

Apple’s market capitalization inched above Microsoft’s Wednesday afternoon for the first time to become, at least on paper, the biggest technology company around. While the Internet filled with reports that Apple is now bigger than Microsoft, the Redmond-based Windows maker still brings in more money each year and reports higher revenue, too.

Apple’s market cap value climbed up to US$222.12 billion compared to Microsoft’s $219.18 billion. Apple’s stock closed on Wednesday at $244.11, compared to Microsoft’s $25.01 closing price.

The steady upward climb Apple’s stock has been showing comes from the company’s strong product lineup and investor’s expectations for consumer purchases.

The iPod lineup, for example, has been a strong seller and has given Apple a market dominating position in the portable media player market. The iPhone burst into the smartphone market and began eating into other cell phone maker’s marketshares almost immediately, and investors have high expectations for the next generation model, expected to be announced during Apple’s World Wide Developers Conference keynote presentation on June 7.

While investors are pleased with the iPhone’s performance, they’re also excited about the prospects for the company’s new iPad multimedia tablet device. Apple has already sold over a million units since its April 3 launch in the U.S., and it will be available in several more countries on May 28.

The iMac is still a strong seller and Apple’s recently updated MacBook Pro and MacBook are favorites as well. With the company’s annual back to school promotion underway, the iMac and laptop lineup will likely continue to be popular.

There’s no doubt that Apple is a successful technology company and has been performing well even during a weak economy. While Microsoft is still an overall bigger company, investors and Apple fans are no doubt pleased to see the Cupertino company’s market cap inch up to make it look bigger, at least on paper.

Apple is currently trading in the pre-market at $249.14, up 5.03 (2.06%).

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So what exactly is Market Cap then?

Never mind - thanks to Wikipedia,  Market Cap is a measurement of size of a business enterprise equal to the share price times the number of shares outstanding of a public company.


Yeah, so IMO it doesn’t mean too much in the real world. M$ still has higher gross and net revenues and there are more Windows machines out there then Macs. It’s a bragging rights thing.


What is important is not a few billion in terms of who is bigger - what is important is that the market values Apple more than Microsoft, i.e. Apple is perceived as the one who is going to really grow, open up new markets, and pave the way for the future.

What happens in two years when a lot of PC owners decide they don’t really need another PC but rather the latest iPad? Microsoft’s main income is from Windows (OEM sales) and Microsoft Office - neither of which are on the iPhone or iPad. Not to mention their shrinking browser share.

Suddenly, all these other business units that have been a drag on their income either have to become profitable or they are going to be sold off because the shareholders are going to show up with pitchforks.

Microsoft’s business plan is still far too tied to Windows and Office and the thing that made it most successful could become it’s worst obstacle in moving forward into this new world.

Standing on your old strategies will lead to watching others move forward.

Constable Odo

Market cap has now become a totally useless indicator of company value.  I don’t know what all those other companies with high market caps were crowing about in the past.  I’m also learning that a company that is debt-free isn’t really all that special and having lots of reserve cash has a tendency to devalue a company.  True financial value has always given me a headache.

The original Shelby Daytona Coupes could have been bought for about $7,000 - $10,000 right after they were retired from racing yet one recently sold for about $7.25 million dollars.  Go figure.  What’s the REAL value of a Shelby Daytona Coupe?

Too bad Apple doesn’t build SDCs, then it might have some real worth.


Too bad Apple doesn?t build SDCs, then it might have some real worth.

And if they did it would be easy to drive and would never crash.

Nick S

Wouldn’t the fact that in recent years Microsoft completed a $40bn share buyback, and are now part way through another $40bn buyback completely skew this story?

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