Culture Magazine

Apple Tops Microsoft in Market Capitalization and is the Largest Company in the World

By Bbenzon @bbenzon
Not so long ago Apple was a fragile boutique operation dwarfed by Microsoft. Now things are different, says the NYTimes:
When Microsoft stock was at a record high in 1999, and its market capitalization was nearly $620 billion, the notion that Apple Computer would ever be bigger — let alone twice as big — was laughable. Apple was teetering on bankruptcy. And Microsoft’s operating system was so dominant in personal computers, then the center of the technology universe, that the government deemed the company an unlawful monopoly.
This week, both Microsoft and Apple unveiled their latest earnings, and the once unthinkable became reality: Apple’s market capitalization hit $683 billion, more than double Microsoft’s current value of $338 billion….
Apple earned $18 billion in the quarter — more than any company ever in a single quarter — on revenue of $75 billion. Its free cash flow of $30 billion in one quarter was more than double what IBM, another once-dominant tech company, generates in a full year, noted a senior Bernstein analyst, Toni Sacconaghi. The stock jumped more than 5 percent, even as the broader market was down.
The flip-flop took a decade and a half, perhaps less. But no one really knows how to plan beyond three to five years, not in any detail. But it's dependent on one product, the iPhone. What now?
Mr. Cihra noted that Microsoft already dominates its core businesses, leaving little room for growth. But, he said, “Apple still doesn’t have massive market share in any of its core markets. Even in smartphones, its share is only in the midteens. Apple’s strategy has been to carve out a small share of a massive market. It’s pretty much a unique model that leaves plenty of room for growth.”
Can Apple continue to live by Mr. Jobs’s disruptive creed now that the company is as successful as Microsoft once was? Mr. Cihra noted that it was one thing for Apple to cannibalize its iPod or Mac businesses, but quite another to risk its iPhone juggernaut.
“It’s getting tougher for Apple,” Mr. Cihra said. “The question investors have is, what’s the next iPhone? There’s no obvious answer. It’s almost impossible to think of anything that will create a $140 billion business out of nothing.”

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Cheats Apple & Berry Crumble

    Cheats Apple Berry Crumble

    Let’s have a quick little throw back to Mum’s Birthday Breaky shallllll we? If you read the post, you’ve probably heard all about the occasion. Read more

    By  Bec Dickinson
    FOOD & DRINK, LIFESTYLE, RECIPES
  • Microsoft Student Partner Summit – Microsoft Headquarters

    Microsoft Student Partner Summit Headquarters

    Hello hello! I’m back from the epic week that was the Microsoft Student Partner Summit in Seattle, Washington. The week was absolutely amazing and inspiring, an... Read more

    By  Trendytechie
    FASHION, GADGETS, LIFESTYLE, TECH
  • Apple Commemorates Robin Williams

    Apple Commemorates Robin Williams

    Share this Post:Apple have paid tribute to recently deceased actor Robin Williams on their homepage. The tech company has only ever done this twice before –... Read more

    By  Techdrink
    TECH
  • Meet Arjit Kansal: 16 Years Old Teen Has Won Microsoft PowerPoint World...

    Meet Arjit Kansal: Years Teen Microsoft PowerPoint World Championship 2014

    A global recognition and USD 5,000 award is what Arjit from Delhi has earned in recently concluded Microsoft Powerpoint 2010 Specialist World Championship 2014... Read more

    By  Jaideep Khanduja
    BUSINESS, FINANCE
  • Splenda Dutch Apple Pie

    Splenda Dutch Apple

    A lower sugar version of apple pie using Splenda as the sweetener.Splenda Dutch Apple Pieby Sue Lau | Palatable Pastime8.20.14This recipe has been sitting... Read more

    By  Sue Lau
    FOOD & DRINK, RECIPES
  • Apple Pudding

    Apple Pudding

    A recipe that has been followed from a very long time. It’s just a simple and easy “Apple pudding” recipe. When you are in a hurry and have only few... Read more

    By  Foodrecipescc
    FOOD & DRINK, RECIPES
  • Farewell Company Magazine

    Farewell Company Magazine

    This month sees the final issue of Company Magazine hit the shelves for the very last time *sobs*. Having been around since 1978 it's become a must read for... Read more

    By  Jadecharlotte
    LIFESTYLE

Paperblog Hot Topics