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Apple market cap tops Microsoft, is now world's largest tech company

post #1 of 237
Thread Starter 
Apple's market capitalization hit $222 billion on Wednesday, leaving it ahead of rival Microsoft as the largest technology company in the world when the closing bell rang on Wall Street.

The dethroning of Microsoft now makes Apple -- for now -- the second largest American company, behind only Exxon-Mobil. Apple has a ways to go to catch the oil giant, which has a market capitalization of nearly $280 billion.

But Apple on Wednesday had the distinction of being the largest technology company in the world, surpassing its Redmond, Wash., rival, in terms of market capitalization, reflected through stock price.

Apple's stock finished the day down 1.09, or 0.44 percent, to $244.13, giving it a market cap of $222 billion. Microsoft also lost $1.09, but its stock price of $24.98 left it with a market cap of $219 billion. The two companies were neck-and-neck much of the day, with the volatility of the market having the two trade places for some time.

But Apple also has a price-to-earnings ratio of more than 20, while Microsoft's is nearly 13, and Exxon's is 13.5.

However long it lasts, Wednesday's accomplishment is yet another milestone for Apple, which has turned itself around since company co-founder Steve Jobs returned to the helm and oversaw a tremendous decade in the 2000s. Apple's success has been largely credited to Jobs, who was named the world's best performing CEO last year. The chief executive increased his company's market cap a whopping $150 billion over a 12-year span.



In April, Apple passed Microsoft in the S&P 500 rankings, which rely on a float-adjusted market cap. Those numbers do not use the full market basis, but apply only to shares on the open market.
post #2 of 237
Yeha! I'm betting we see a letter from Steve pretty soon about this. And a mention June 3 & 7.
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post #3 of 237
too bad not in market share

P.S. there is a second post by me down the page, please read before commenting , thx
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post #4 of 237
This is unprecedented, and WWDC is right around the corner, I wonder how Steve Ballmer will react to this recent news, maybe he'll bash the iPad some more.
post #5 of 237
Quote:
Originally Posted by Soskok View Post

too bad not in market share

Because market share is so important right?
post #6 of 237
Quote:
Originally Posted by Soskok View Post

too bad not in market share

Sore loser maybe?

AI's mention of PE ratios is really quite pointless (BTW a higher PE sort of indicates 'over-valued'), why? Amazon's PE is 55!

"Business isn't what it used to be", sorry MS
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post #7 of 237
"What I cant figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? He knows he cant win."

- Bill Gates, June 1998





(AUDIO)
http://www.huffingtonpost.com/2010/0..._n_533817.html

http://macdailynews.com/index.php/we...omments/25385/

http://www.cringely.com/2010/04/masters-tournament/
post #8 of 237
Microsoft is pretty dead in terms of innovation. Glad to see Apple finally beat them after years of the sleezy Bill Gates.
post #9 of 237
That Apple can dominate in profitability without being the marketshare leader speaks volume.

They call this the "20-80" strategy. You only have to cater to the higher end of the market and still make profit.

In the case of the digital music market, Apple priced its iPods to cater to middle ground to expand its target, and yet remain highly profitable.

Apple is trying to repeat that also with the iPad, and so far, it is doing well. As important, the competition had to go back to the drawing board.

CGC

Quote:
Originally Posted by Soskok View Post

too bad not in market share
post #10 of 237
My ten year bet finally comes to an end! The ridicule I had from people back then as well. Stupid fools should have stopped arguing with me and stuck some money on the cash cow.
post #11 of 237
WOW! This just proves that Market Share is nothing when it comes to measuring company's success and power. I am actually really happy that Apple finally has this kind of power. 30 years later!
Apple had me at scrolling
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Apple had me at scrolling
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post #12 of 237
Quote:
Originally Posted by Soskok View Post

too bad not in market share

Say what? Don't be negative, you're raining on my parade.
GIGO. The truth in all of life.
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GIGO. The truth in all of life.
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post #13 of 237
Dear Bill,

DAAAAAAAAA!

regards,

Steve.
post #14 of 237
This happened faster than I expected, but I'll have to see Apple break away by a sold $20B before I think that it's actually in the lead and not "tied" for all intents and purposes.

The next milestone: Besting MS' revenue per quarter.


Quote:
Originally Posted by OzExige View Post

Sore loser maybe?

AI's mention of PE ratios is really quite pointless (BTW a higher PE sort of indicates 'over-valued'), why? Amazon's PE is 55!

"Business isn't what it used to be", sorry MS

No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.

I see nothing negative about Apple's measly 20.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #15 of 237
Quote:
Originally Posted by davesw View Post

"What I cant figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? He knows he cant win."

- Bill Gates, June 1998





(AUDIO)
http://www.huffingtonpost.com/2010/0..._n_533817.html

http://macdailynews.com/index.php/we...omments/25385/

http://www.cringely.com/2010/04/masters-tournament/

Microsoft share price has been in the $20-27 range for over 3 years. Apple share price has skyrocketed.

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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post #16 of 237
What d'ya reckon then ? Surpass exxon by next year to become el supremo champion of the USA?

Looks a distinct possibility.

Only $60B away! Easy pezy.
post #17 of 237
Quote:
Originally Posted by Soskok View Post

too bad not in market share

Of course you mean magazine covers and Executive of the Year awards, product quality, support ratings market share:

SJ/Apple vs BalmerMicroSoft

.
"Swift generally gets you to the right way much quicker."
-auxio-
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"Swift generally gets you to the right way much quicker."
-auxio-
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post #18 of 237
Quote:
Originally Posted by solipsism View Post


No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.

I see nothing negative about Apple's measly 20.

Yep, what I said, 'sort of' means over valued, nothing negative about 20, however 55 is getting too high.
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post #19 of 237
Quote:
Originally Posted by Soskok View Post

too bad not in market share

Let's see. Apple reportedly takes 1/3 of entire handset market's operating profits. Apple reportedly takes 1/3 of the worldwide PC market's operating profits. They have owned the PMP market's profits for many years and I'm sure have already cornered the tablet market's profits. What share of the market's profits do they need to make before you realize that Apple is trouncing everyone in all four areas of business they compete in?
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #20 of 237
Apple hasn't scratched the surface of what they're about to do to tech and communications.
post #21 of 237
Quote:
Originally Posted by davesw View Post

"What I cant figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? He knows he cant win."

- Bill Gates, June 1998

All signs indicate that they are still trying to figure out what's going on.
post #22 of 237
Quote:
Originally Posted by OzExige View Post

Yep, what I said, 'sort of' means over valued, nothing negative about 20, however 55 is getting too high.

Then I recant my aggressive "No" at the start of my reply.
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #23 of 237
Steve Jobs must be over the moon. Only a deluded halfwit would have thought this possible in the late nineties.
post #24 of 237
Quote:
Originally Posted by solipsism View Post

No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.

I see nothing negative about Apple's measly 20.

Right, but the mention of P/E in the article was quite pointless, especially stated the way it was, as a qualification. I didn't get what that was supposed to imply at all.

We're still in the midst of a nasty market correction. It will be interesting to see where comparative market cap for AAPL and MSFT go when the market begins to recover. Not that it means much. Comparing market cap is just a parlor game, really.
Please don't be insane.
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Please don't be insane.
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post #25 of 237
Apple has no where to go but UP.


1) iPhone's continued exponential growth

2) iPad - this product is seling like hot cakes!

3) Mac is steadily gaining market share

4) iTunes/App Store - dominant and hard to beat combo

5) Retail - Sales at Apple's retail stores are PHENOMENAL

6) iAd - Another MASSIVE $Billion+ opportunity

7) Apple TV - Another MASSIVE $Billion+ growth area

8) Accessories, Software, etc.

9) iPod - Apple's secret weapon in iTunes/App Store/ iPhone OS dominance

10) Future products and services
post #26 of 237
Saying that Apple is not a leader in marketshare really is quite pointless, as there's no other company it can rightfully be compared to.

No other company is a major player in desktop, laptop, mobile, OS, digital content, etc - AT THE SAME TIME!.

Microsoft is a non-player, at this stage.

If you combined Nokia, Amazon, Dell, Microsoft into one company, maybe they could compete with Apple. Of course the balance of market cap value would shift away from Apple, but in a "relative" comparison, I'd wager that Apple would still come out on top.
post #27 of 237
Exxon-Mobil, here we come!

Oh, and btw, Apple is doomed!
post #28 of 237
Quote:
Originally Posted by OzExige View Post

Yep, what I said, 'sort of' means over valued, nothing negative about 20, however 55 is getting too high.

Just depends on the company. If they're experiencing sustained, rapid earnings growth, a P/E of 55 may not be too high at all.
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post #29 of 237
Quote:
Originally Posted by Soskok View Post

too bad not in market share

And you honestly think that anyone cares about Apple's market share, now that they are officially the BIGGEST TECH COMPANY IN THE WORLD?!?
post #30 of 237
Quote:
Originally Posted by solipsism View Post

Then I recant my aggressive "No" at the start of my reply.

Sorry, no.
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post #31 of 237
Quote:
Originally Posted by Soskok View Post

too bad not in market share

When you can buy groceries, or send a kid to college, or retire comfortably with market share, let me know.

Quiz: Guess which car company had the highest market share in the world for decades and decades.
post #32 of 237
Quote:
Originally Posted by anantksundaram View Post

Exxon-Mobil, here we come!

Oh, and btw, Apple is doomed!™

Look, you're Trade Mark isn't funny anymore!

................

Yes it is!

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post #33 of 237
Quote:
Originally Posted by Daniel001 View Post

Steve Jobs must be over the moon. Only a deluded halfwit would have thought this possible in the late nineties.

..or someone who understood the philosophies behind the whole shebang. The pieces of the puzzle and the end game were clear to all who possessed vision the day they bought NEXT.

How could anyone compete...? Quite simply, they couldn't.

After Atari, AMiga And Be died, there was only one company with the knowhow and philosophies to bring UNIX to the masses.
post #34 of 237
There shall be more milestones coming soon...
post #35 of 237
post #36 of 237
Let us not fall victim to the same hubris that claimed Microsoft. In ten years some small or feeble company could come out of nowhere to surpass Apple. I'm just sayin', enjoy the moment, but never get complacent, Apple. Keep being hungry and never lose your vision of creating great, innovative, customer-centered products. I hope they DON'T ever have the biggest market share. That kind of dominance can easily lead to Microsoft-like complacency and fall.
A.k.a. AppleHead on other forums.
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A.k.a. AppleHead on other forums.
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post #37 of 237
Quote:
Originally Posted by zindako View Post

Because market share is so important right?

Yes. I wish all my friends and colleagues worked under OS X.

Don't be so negative on my original comment, what i really meant to say is there is still way to go.

Hope Apple will be VERY aggressive in marketing the next OS (OSXI?)
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post #38 of 237
Quote:
Originally Posted by solipsism View Post

This happened faster than I expected, but I'll have to see Apple break away by a sold $20B before I think that it's actually in the lead and not "tied" for all intents and purposes.

The next milestone: Besting MS' revenue per quarter.

No, a higher P/E can indictate a stock is over-valued, but it does not mean that it actually is. Based on Amazon's growth and current P/E I'd say their stock is over-valued. However, Apple's P/E is still quite low at 20 despite very aggressive growth and their current cash holdings which tells me that there is consumer confidence in the stock and a strong outlook for the future.

I see nothing negative about Apple's measly 20.

Granted, 20 is not very high (the S&P has averaged 16 in the past 90 or so years), but it is not 'measly.' That reflects a fair amount of growth expectations for a very large company like Apple.

The larger you get, the tougher it becomes to create proportionally higher and higher value (for example, it is easier to grow 25% and become a $25B company from being a $20B company, than it is to become a $250B company from $200B). That is why growth is mean-reverting.
post #39 of 237
Quote:
Originally Posted by Robin Huber View Post

Let us not fall victim to the same hubris that claimed Microsoft. In ten years some small or feeble company could come out of nowhere to surpass Apple. I'm just sayin', enjoy the moment, but never get complacent, Apple. Keep being hungry and never lose your vision of creating great, innovative, customer-centered products. I hope they DON'T ever have the biggest market share. That kind of dominance can easily lead to Microsoft-like complacency and fall.

I agree, as a shareholder, today is more of a concern than celebration.
post #40 of 237
Quote:
Originally Posted by csimmons View Post

And you honestly think that anyone cares about Apple's market share, ...

There are many Apple-centric sites and followers that become giddy everytime there is a blip up in Apple's market share. Even Steve Jobs is not immune to that.

Many in the mass media wants to call attention to the race in marketshare because of the rivalry. It attracts "eyeballs", and feed the frenzy between the Apple haters and followers.

Apple Insider would be so boring without these tidbits. And, we won't even have time to gloat during moments like this.

My position remains that Apple followers should try to downplay these "pissing contests". There will come a time that Apple may lose the race in the marketshare. But, as it has proven, all it has to do is win the profitability trophy.

Quote:
Originally Posted by monstrosity View Post

I agree, as a shareholder, today is more of a concern than celebration.

You are being too gloomy. If you want to depress yourself. just ponder the words:

"This too shall pass..."

Nothing lasts forever. Even Apple will someday be overshadowed by another. No company remained at the forefront, forever, after its founder has left the helm, or lost the "itch of challenge".

Why do you think Bill Gates left Microsoft?

Let's just hope that Steve Jobs remains driven.

CGC
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