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Apple overtakes Microsoft as biggest tech company
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Apple overtakes Microsoft as biggest tech company
Bill Rigby
SEATTLE
Wed May 26, 2010 10:55pm EDT
Apple Inc. Chief Executive Steve Jobs speaks about features on the iPod Nano, which includes a video camera, at a special event in San Francisco, in this September 9, 2009 file photo.
Credit: Reuters/Robert Galbraith/Files
SEATTLE (Reuters) - Apple Inc shot past Microsoft Corp as the world's biggest tech company based on market value on Wednesday, the latest milestone in the resurgence of the maker of the iPhone, which nearly went out of business in the 1990s.
Technology | Media
Apple's shares rose as much 2.8 percent on Nasdaq on Wednesday, as Microsoft shares floundered, briefly pushing its market value above $229 billion, ahead of its longtime rival.
Both stocks ended down after a late-day sell-off, but Apple emerged ahead with a market value of about $222 billion, compared with Microsoft's $219 billion, according to Reuters data.
Apple shares closed down 0.4 percent at $244.11 on Nasdaq, while Microsoft fell 4 percent to a seven-month low of $25.01.
Shares of Apple are worth more than 10 times what they were 10 years ago, as it has profited from revolutionizing consumer electronics with its stylish, easy to use products such as the iPod, iPhone and MacBook laptops.
The last time Apple had a higher market value than Microsoft was December 19, 1989, according to Thomson Reuters Datastream.
Microsoft, whose operating system runs on more than 90 percent of the world's personal computers, has not been able to match growth rates from its hey-day 1990s. Its stock is down 20 percent from 10 years ago.
Apple, which struggled for many years to get its products into the mainstream, resorted to a $150 million investment from the much larger Microsoft in 1997 in order to keep it afloat. At that time, Microsoft's market value was more than five times that of Apple.
Microsoft still leads Apple in sales. In the latest quarter, Microsoft reported $14.5 billion in revenue compared with Apple's $13.5 billion.
Cupertino, California-based Apple is now the second-largest company on the Standard & Poor's 500 index by market value, behind energy behemoth Exxon Mobil Corp.
(Additional reporting Rodrigo Campos and David Gaffen; Editing by Gary Hill and Richard Chang)
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May 26, 2010 11:33pm EDT
I’m reading this article on my iPad. It’s a brilliant piece of technology. Apple deserves every good thing and Steve Jobs deserves much success and all oaf the credit. His products, vision, and company are amazing.
Oberon123
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May 26, 2010 11:54pm EDT
@ Oberon123
I agree, everyone saw this coming. I saw it coming when I switched to Mac in 2004 when OSX was in it’s infancy.
Go Steve!
tonyrjohnston
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May 27, 2010 12:08am EDT
‘The bubbles in the water disappear so quickly’, we all know APPLE z primarily business driven not customer centric , it doesn’t deserve this position.If APPLee is still at the top next year, i will shot myself.MSFT underestimated the mobile market even though MSFT z emperor of this IT kingdom.she (the googlee) barely touches the MSFT Real Stuff.
anilchow22
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May 27, 2010 12:24am EDT
This is a bunch of crap. With a few exceptions (Xbox, Zune) Microsoft does not make hardware. In order to compare the value of the two companies, you have to first cut out the part of Apple that makes the OS for Apple and the other software, and add back in the Nano and maybe a few other things, or, add to Microsoft’…s value all the value of all the hardware manufacturers that build PC’s, phones, servers, etc. on Microsoft’s software. If you’re going to do math you better do it right.See More
TheRealGoldmund
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May 27, 2010 12:52am EDT
TheRealGoldmund,
I see what you’re saying about evaluating two companies, but the point of this article is not just to compare the market value of AAPL and MSFT, but also to demonstrate where AAPL has come from in the past. Additionally, AAPL gains from synergies between all vertically integrated businesses (chips, hardware, OS, apps, services, retail). The value of the company is greater than the sum of its parts. MSFT’s business model is clearly different because it chooses to rely on volume and specialize in software only for the most part. So, the comparison doesn’t seek to show which company does better in a particular industry segment. IT seeks to show which company delivers a bigger value to its shareholders.
arorris
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May 27, 2010 1:23am EDT
While I understand that MS saw an opportunity to deliver Office on another platform, I would have preferred that Bill Gates kept his investment and allowed Apple to whither and die a slow death back in 1997.
We could have eliminated this proprietary/preditory hardware manufacturer with the Napoleon complex and possibly gotten the rest of the fanboys to drink the cool-aid. The world would have been a much better place!
NVresident
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May 27, 2010 1:28am EDT
What a joke. Look at the iPhone! Eventually, of course, the rechargeable battery will need to be replaced. Unfortunarely for the customer though, the battery has to be soldered in, and unless you’re planning on having Apple do the job for a real bundle of money, you *will* bend and warp the case in the process of removing it. It is a nightmare.
How on Earth could these idiotic geeks release a phone to the public that needs its battery to be soldered in? Apple’s out to make a quick buck regardless of their customers’ headaches down the road. Forget the toy. Forget Apple.
johntheadams
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May 27, 2010 1:29am EDT
The iPhone nearly went out of business in the 90s?
danglingprtcple
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May 27, 2010 1:42am EDT
@danglingprtcple
It helps when you read the whole sentence instead of taking just one part of it.
The *maker* of the iPhone nearly went out of buisiness in the 90’s.
IceCubic
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