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Apple's Market Cap Exceeds Google's
Lawrence Person writes "Mac Daily News was one of many Apple-followers to note that Apple Inc.'s market capitalization exceeded Google today. That means that the combined value of all Apple's outstanding shares of stock exceeded the combined value of all Google's outstanding shares of stock. Apple's stock is worth $157 billion and change vs. Google's $156 billion. Other companies Apple has surpassed in market cap include Cisco, HP, and Intel. Also, Apple is now worth 3 times the value of Dell Computer, despite Dell's founder and CEO declaring over a decade ago that if he ran Apple, he'd 'shut it down and give the money back to the shareholders.'"
Look at the price of iPod's, iPhone's, Mac Books, and their other products. They are selling them at an incredible profit. Not hard to see why apple is worth so much. As much as I hate apple I have to give them credit.
Not really a shock.
One company's based on ubiquity and mindshare. The other's the same though less so, but actually retails physical items.
How can a company with $24B in sales, $3B in profit, and $40B in cash and assets (2007 figures) have a market cap of $160B?
... it's amazing that a company like Google, that has been on the stock market for only a few years, can have a market capitalization about equal to that of a technology powerhouse like Apple.
On the other hand, is there anyone in their right mind who thinks that Google will be as valuable after 30 years as Apple has proven to be?
Well, when you factor in a rapidly growing computer market (for Apple) with lots of growth potential left, a rapidly growing music market with lots of growth potential, a rapidly growing smartphone market, a rapidly growing mobile applications market...
And so on.
The thing of it is, Apple can still miss in a few categories and still have tremendous room for growth. They have many legs of stability holding up their table of success (I daresay that's the most awful metaphor you'll encounter this week).
The market rewards innovation, mindshare, and success. Apple has all three...
If after that you are still mystified - buy mutual funds.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
The stock market is a mechanism by which monetary inflation is captured and transferred to the wealthy.
HTH
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If "smartphones" evolve to become the dominant computing platform over the next decade - as I think is likely - Apple has the potential to grow until it dwarfs Microsoft . . . and everybody else in the business. Looking at the market as it stands right now, Apple is in a position to become a sort of Microsoft on steroids over the next 10 years.
For years the tech press has been nattering on about "convergence" devices. Microsoft and Sony sank tens of billions of dollars into their game console business in part because they'd hoped their devices would become a ubiquitous digital hub, a move I always found questionable, since many households would never purchase a game machine and neither company has shown any skill in providing interfaces users enjoy working with.
Unfortunately for them, in the meantime increasing miniaturization and decreasing power requirements made it practical to produce full-fledged personal computers you could fit in your pocket. The iPhone is a tiny Macintosh with a built-in touchscreen that just happens to come with an integrated cell phone, and as such represents a far better bet as an ideal convergence device than a videogame machine.
Apart from the appeal of the cell phone as a convergence device, the other problem for the remaining players in the market, like Dell, HP and Microsoft, is that margins on dedicated personal computers are crashing. The same technology which makes it possible to cram a fully-functional (if not state-of-the-art) personal computer into your pocket has also slashed the price of even relatively high-end desktop PCs to well under $1000. At these low prices - you can get a fully capable desktop these days for around $300, and a laptop for $200 more - the devices are becoming commodities with little if any margin left. Low PC prices are also making it increasingly difficult for Microsoft to justify its outrageous software prices - on a PC loaded with Vista and MS Office, the cost of the Microsoft software can easily exceed the cost of the hardware itself.
Apple has the advantage of producing and selling both the hardware and the software. As such, the declining cost of hardware won't necessarily erode their product margins, or at least won't erode them as much as it will their competitors. They can also have the cost of the unit subsidized by the carriers themselves, allowing them to charge consumers more for their products than rivals like Dell and Microsoft, who either don't have access to such subsidization (Dell and their PCs) or who have to split it with the hardware manufacturers (MS and the smartphone makers themselves). While Apple's overall margins are likely to decrease as most customers migrate away from more expensive, traditional desktop and laptop PCs, their market share and overall number of units sold will explode. And their margin situation will still be vastly superior to that enjoyed by the likes of Dell and HP in the (dying) dedicated personal computer business.
Apple's other advantage is their focus on the customer experience. Whereas Microsoft has spent the past 20 years trying to lock customers inside the Windows jail, Apple's focus has been on trying to lure customers onto its Macintosh platform. It shows with the iPhone, which has an interface that puts the jumbled, klunky Windows smartphone interface to shame. The iPhone sports an interface consumers are willing to pay a substantial premium to enjoy.
I suspect at some point in the next 2-5 years Apple will move to make the iPhone a true PC. They'll make some kind of docking station available, so you can connect it to a full-sized monitor and keyboard and wired network when you're at home or at the office, the way laptop docking stations currently allow users to connect. It'll have the advantage of allowing corporations to replace not only their existing desktop and laptop PCs, but also their telephones and employee cell phones, since the iPhone will be able to function as all of these devices. Mobile users who require a keyboard and larger mon
How about this....
What business is Harley Davidson in? Not Motorcycles. They're in the image and fantasy business. Middle aged professionals buy them and pretend to be careless free spirit rebels on the weekends and then on Monday, they're back to being the Sam the accountant or lawyer or engineer. I saw quite a few "bikers" with their Harley Davidson logo'd leather attire (huge business for Harley!) and Rolex watches. Real motorcycle enthusiasts, from what I'm told, prefer BMW or something Japanese: Harleys are junk.
What business is McDonald's in? Business process. When someone buys a franchise from McDs, they're buying a way to do business and a name for the burger joint that they open.
Estee Lauder was famous for saying that she was in the business of hope not cosmetics. She sold women the hope that they can look young and beautiful like her models.
My point is that if Apple were a computer company, they'd be making the crappy margins that Dell and the other PC makers are making.
Huh? It's right in their 10-Q under Operating Expenses.
Is "shooting from the hip" a euphemism for "making shit up to sound correct" or "spreading bullshit to suck apples dick"?
Hmmm witty sig or funny sig? Maybe elitest techy sig!
With Dell it is always "devil in details."
Apple has the "attention to details" thing on their product development plan.
I understand that most geeks only look at specs.
But I also consider day to day routine important. And for many things Macs with Mac OS X are magnitude better compared to Dell with Vista. Devil in details, so to say.
Point is, newly bought Mac is ready out of box for average Joe Six-Pack. Newly bought Dell with Vista has to be brought to your geek friend to make out of it something the Joe Six-Pack can use.
You can't like Dell - because it is albeit useful but only a tool. But you can like Apple products because they are made to be liked. And they are also useful. That's why I can easily imaging that some people might get religious over stuff which "Just Works" (c).
P.S. To be frank, I have seen the Macfanboism only in US. US is in particular over-religious place. People get there religious over different things all the time. Apple is literally religious about making good stuff, so some people start following: and it is only logical.
All hope abandon ye who enter here.
> So, you're a fan of plastic crap, as long as it's not overpriced
Yes, indeed! I have a flock of pink flamingos on my front lawn that I got from the dollar store! wooooooooooooo!
Horns are really just a broken halo.
Ahhhh, you lost me at "real work". Nice try, but the "real people" use "real computers" argument ran dry about 5 years ago.
The rootkit generates much erratic behavior. Known system calls trigger repeatedly are abstinence(), shutthefuckupandobey(), and, most importantly, iBelieve().