Apple 'now visible in Microsoft's rearview mirror' as value swells
With Apple's annual revenue more than doubling since 2005, a new analysis looks at the possibility of the Mac maker surpassing its chief rival, Microsoft, as the world's most valuable technology company.
Gabriel Madway with Reuters offered a look at Apple's astounding growth, which has caused the Cupertino, Calif., company's market value to surge to $180 billion. Microsoft remains much larger, with a $250 billion market cap, but it is Apple's rapid growth that has raised the question of whether it could exceed its rival to the north and become the most valuable technology company in the world.
If AAPL stock were to hit $280, that would reportedly give the company a market value of $250 billion -- equaling that of Microsoft in its current state. Of course, that's a big 'if,' but with continued rapid iPhone expansion, growth of the Mac platform, and the anticipated introduction of a tablet device in the first quarter of 2010, some believe it's possible within the next year.
UBS Investment Research's Maynard J. Um believes Apple will hit $280, and analyst Gene Munster with Piper Jaffray has a price target of $277 for Apple. In addition, analyst Mike Abramsky with RBC Capital Markets has forecast that AAPL will hit $275 in the next 12 months. For comparison, analysts believe Microsoft could trade as high as $36 in the next year, which would reportedly bring its market cap to $320 billion.
"Apple is now visible in Microsoft's rearview mirror," Madway's report said.
Despite Apple's gains, Microsoft is still growing at a brisk pace. Since 2005, its revenue has risen 47 percent, to $58.4 billion. But Apple, in the same frame, more than doubled, reaching $36.5 billion. Earnings per share for the Mac maker saw a four-fold increase to $6.29.
Last quarter was record setting for Apple, which saw profits surge 46 percent on record sales of 3 million Macs and 7.4 million iPhones. The company's profits for its fourth financial quarter of 2009 were $1.67 billion, or $1.82 per diluted share, on sales of $9.87 billion.
Gabriel Madway with Reuters offered a look at Apple's astounding growth, which has caused the Cupertino, Calif., company's market value to surge to $180 billion. Microsoft remains much larger, with a $250 billion market cap, but it is Apple's rapid growth that has raised the question of whether it could exceed its rival to the north and become the most valuable technology company in the world.
If AAPL stock were to hit $280, that would reportedly give the company a market value of $250 billion -- equaling that of Microsoft in its current state. Of course, that's a big 'if,' but with continued rapid iPhone expansion, growth of the Mac platform, and the anticipated introduction of a tablet device in the first quarter of 2010, some believe it's possible within the next year.
UBS Investment Research's Maynard J. Um believes Apple will hit $280, and analyst Gene Munster with Piper Jaffray has a price target of $277 for Apple. In addition, analyst Mike Abramsky with RBC Capital Markets has forecast that AAPL will hit $275 in the next 12 months. For comparison, analysts believe Microsoft could trade as high as $36 in the next year, which would reportedly bring its market cap to $320 billion.
"Apple is now visible in Microsoft's rearview mirror," Madway's report said.
Despite Apple's gains, Microsoft is still growing at a brisk pace. Since 2005, its revenue has risen 47 percent, to $58.4 billion. But Apple, in the same frame, more than doubled, reaching $36.5 billion. Earnings per share for the Mac maker saw a four-fold increase to $6.29.
Last quarter was record setting for Apple, which saw profits surge 46 percent on record sales of 3 million Macs and 7.4 million iPhones. The company's profits for its fourth financial quarter of 2009 were $1.67 billion, or $1.82 per diluted share, on sales of $9.87 billion.
Comments
"Apple is now visible in Microsoft's rearview mirror"
It's more like the other way around if you ask me.
Windows 7 still needs anti-malware software running (8 out of 10 viruses got in) and it's going to cripple the performance of all these cheap Win7 netbooks people are going to buy this holiday season. A nice shaft in the @ss again from your friends in Redmond.
Same old Windows, just a new face.
And now you can't run Snow Leopard on those Atom netbooks either.
hahaha!
But on a more serious note:
http://earthlink.com.com/8301-13506_...part=earthlink
HAHA> how you see in your rear view mirror when your 90% vs 10% ahead - I ask you? pure fanboyism.
But on a more serious note:
http://earthlink.com.com/8301-13506_...part=earthlink
You still don't understand Apple's market, or the real significance of that 10%.
Nokia also has dominant marketshare. Now compare your average Nokia smartphone to the iPhone.
Windows is a bargain-basement brand, and sells like one.
HAHA> how you see in your rear view mirror when your 90% vs 10% ahead - I ask you? pure fanboyism.]
Objects in the mirror may be closer than they appear!
Pure fanboyism.
Can you blame the Apple fanboys? They've been right all along.
HAHA> how you see in your rear view mirror when your 90% vs 10% ahead - I ask you? pure fanboyism.
But on a more serious note:
http://earthlink.com.com/8301-13506_...part=earthlink
You don't. You look when you are 59% vs. 41% ahead.
http://finance.google.com
I can see them crossing within the next year or two, but it'll be more in the middle; somewhere around 220B.
Objects in the mirror may be closer than they appear!
Oh. Snap.
Well done.
Fuuuuu!!! Rounding error, rounding error, rounding error, rounding error, rounding error!!!
HAHA> how you see in your rear view mirror when your 90% vs 10% ahead - I ask you? pure fanboyism.
But on a more serious note:
http://earthlink.com.com/8301-13506_...part=earthlink
You're funny. You get all jacked up and accuse people of calling you names, and then you turn around and call satisfied Apple customers "fanboys/fanbois, etc."
Does that mean we can call you all variations of your moniker and you won't complain?
A ravenous Wall Street has ruined more than a few companies. If focus is taken off products and R&D then Apple gets screwed. Even a CEO of the decade would have trouble dealling with to many demands from the markets.
Dave
Objects in the mirror may be closer than they appear!
Actually if Apple is being seen in Microsoft's rear view mirror, it's because Apple screwed up and let Microsoft catch up again.
You see, we Macheads have a twisted view of reality.
We expect our computers to work for us and not us for the computer.
I know it sounds strange, but I've never swore at my computer, or threw it across the room, or beat the monitor with the keyboard like I've seen many Windows users do.
I've certainly haven't gone to jail because a virus loaded my Windows based computer with "frameware".
http://it.slashdot.org/story/09/11/0...-Your-Computer
Once this perception is given by the media and equally the public, it will be a huge snowball effect for Apple adoption. They will suddenly be seen as a completely relevant player by far more people.
Cool deal. I hope it happens within Steve Jobs lifetime. It's not THE solution for them or the silver bullet by any means, but it will be a major milestone and will unavoidably be recognized.
Good job Apple..... overall, good job! Keep up the pace!
You still don't understand Apple's market, or the real significance of that 10%.
Nokia also has dominant marketshare. Now compare your average Nokia smartphone to the iPhone.
Windows is a bargain-basement brand, and sells like one.
Yes, this is a good example, Nokia sells 15 times more phones than apple, but apple is still making more profit from the phones it sells than what Nokia does.
http://www.businessweek.com/globalbi...mpaign_id=yhoo
As for MS, for the time being, apple can't expect to catch up much on the PC market share percentage. That's as long as corporations continue to blindly buy truckloads of PCs. I don't think that this will change very soon.
To conclude, if you just compare unit numbers it will take a long long time for apple to catch up to MS (or Nokia). However, for these companies the real game is the bottom line: profits.
http://blog.telephonyonline.com/unfi...handset-maker/
You still don't understand Apple's market, or the real significance of that 10%.
Nokia also has dominant marketshare. Now compare your average Nokia smartphone to the iPhone.
Windows is a bargain-basement brand, and sells like one.
No I understand the whole "premium ", Lexus, BMW analogy or what have you. But why must we contantly compare them then if they are so different in their goals. Why are Apple fans so stuck in this "vengeance is mine" mindset with MS and it's profits and its share. It's so ridiculous!!!!!!
HAHA> how you see in your rear view mirror when your 90% vs 10% ahead - I ask you? pure fanboyism.
But on a more serious note:
http://earthlink.com.com/8301-13506_...part=earthlink
please dont engage this guy with his bs. he knows its bs and he just says it to be a dick.
can somebody please explain to me why teckstud is still here? he never has anything to say that isnt negative and obviously has ulterior motives. and i distinctly remember seeing that he was banned not too long ago. WTF is going on here? im tired of seeing this d bag dominating all the threads with his BS.