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Apple Surpasses Microsoft In Market Capitalization
je ne sais quoi writes "Today Apple surpassed Microsoft in market capitalization, a metric of the perceived worth of a company. At around 2:30 pm EDT, the total number of Apple shares were worth $227 billion, whereas Microsoft's were worth $226 billion. Both companies' stocks ended the day in the red, and have dropped in value since the Greek crisis began, but Apple's share price has been falling less quickly. Of American companies, only Exxon-Mobil has a higher market cap at this point at $278 billion. According to the article: 'This changing of the guard caps one of the most stunning turnarounds in business history, as Apple had been given up for dead only a decade earlier. But the rapidly rising value attached to Apple by investors also heralds a cultural shift: Consumer tastes have overtaken the needs of business as the leading force shaping technology.'"
Microsoft hasn't really been growing for a decade, while Apple has. The market capitalisation often reflects this, because people are more willing to buy shares in a growing company, expecting that their value will increase over the next few years. People only buy shares in a stable company based on the expected dividends. This means that Apple's stock price is likely to be more volatile than Microsofts and, as long as the continue to be perceived as growing, greater than the current 'real' value of the company.
I am TheRaven on Soylent News
newly found controlling and assholish nature.
Newly found? The "look and feel" lawsuit started in 1988, and led to FSF's Apple boycott.
Back then they lost. Today they would have patented everything and won. Or possibly even won without patents; copyright on computer software is much broader than it was in the 80's.
Finally! A year of moderation! Ready for 2019?
Mod parent up. Market capitalization is nothing more than perceived value by those who play the stock market gambling game. It's driven by a combination of factors, including the falling Euro, the Greek disaster, and the Gulf oil spill, all which have nothing to do with Apple. I suppose it gives Apple some bragging rights for awhile, but it doesn't have much to do with the real world. Microsoft isn't selling iPhones or marketing music. Apple isn't marketing Microsoft Office.
How about a moderation of -1 pedantic.
It doesn't just "look like" the OS X desktop. Limbaugh is a long-time Mac user and evangelist.
http://www.apple.com/pr/library/2010/01/25results.html
Um, Apple generates billions of dollars in profits each quarter as well. Sorry, what was your point?
True, he is only 3rd richest behind Bill and Carlos.
Really? Let's see:
Microsoft - Year ending December 31, 2009, Net Income $16.26 Billion on Revenues of $58.69 Billion
Apple Inc. - Year ending December 31, 2009, Net Income $7.477 Billion on Revenues of $42.05 Billion
According to you, if Apple grew sales 100% per year for 5 years, over that period they'd earn $16.26 billion in net income on revenues of more than $1.3 Trillion. Let's assume Apple's net income remains 17.78% of revenue. On sales of $1.303 Trillion, they'd show net income of $231 billion, not $16.26 billion as you assert.
We're supposed to take any part of your post seriously? You're spouting bullshit in such an authoritative manner you'd be right at home behind the anchor desk of Fox News.
> Printing support may come as a part of the iPhone OS 4.0 SDK. If not, Google's Cloud Print Service could fill the gap.
In the old days we called this vaporware.
> The iPad is such a good 3D game platform that Nintendo declared Apple the enemy of the future.
Way to completely misrepresent what they said.
> The iPad itself is a solid media player, but you can also hook it up to your TV with Component or VGA cables.
No it isn't. IT IS A JOKE. It can play a subset of one format and nothing else.
That includes the video that your still camera can generate that you think you will
get somewhere by using the "camera connection kit".
Doing anything but multi-touch parlour trick apps with an iThing requires considerable "stretching".
It's time to stop swimming in the cool-aid. The nonsense about printing (and the fanboy excuses)
are especially sad since Apple even went out of it's way to BUY the Unix printing subsystem.
A Pirate and a Puritan look the same on a balance sheet.
On /. ???
Compared to 4chan this place is a model of civilised behaviour.
Their profit margin is around 20%, which is insanely high for a hardware company. For comparison, Dell's profit margin is under 3%. Microsoft's may be around 30%, but Adobe's is over 10%, so Microsoft's margins are only a bit higher (factor of two or three) than is normal for a software company, while Apple's are around ten times those of the rest of their industry.
I am TheRaven on Soylent News
Microsoft most definitely did NOT save Apple. Another reply to you already pointed this out so I won't bother duplicating his/her details, but you are absolutely incorrect on this issue.
" first time they fail the stock will tank. Remember the Newton?"
- Incorrect again on many levels. First of all, the Newton was about 20 years ago and the landscape has changed drastically. Dragging this out again and again borders on ridiculous, especially considering your own example proves you wrong. Newton failed and Apple is not dead. Apple has also had what many consider failures in the last 5 years such as that apple boombox, AppleTV (not a big failure, but certainly has not been a standout product) and the stock has not tanked.
"Microsoft on the other hand makes huge margins selling the same thing"
- Yes, they do. The same thing. Never changing. Never innovating. 10 years and the stock has been stagnant. Tell me again how great MS is?
Let's look at facts instead of hyperbole.
1. The iPod has been around for almost nine years and iPhone for three years. Hardly a hyped up fad that will disappear overnight. The Walkman lost its relevance when CDs came out. Perhaps there's a new disruptive music technology sometime in the future but we'd be hard pressed to name it right now.
2. Microsoft's earnings are flat over three years while Apple's has more than doubled. That's not even including the iPad. Microsoft's growth will come from Windows 7, server and office products but that's mostly coming from corporate spending which is still down in the dumps. Xbox is basically a break even product line so it's not even worth mentioning in this conversation.