Apple passes Microsoft to be biggest tech company

Discussion in 'The Water Cooler' started by whoosh, May 27, 2010.

  1. whoosh

    whoosh Cooler King
    Staff Member Premium Supporter

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    Apple has pushed past arch-rival Microsoft to become the world's biggest technology company.

    Changes in the share price values of the two in Wednesday's choppy trading left the total value of Apple at $222bn (£154bn).

    Microsoft is now valued by investors at $219bn.

    However, Microsoft still enjoys higher profits than Apple. Its most recent annual net profit was $14.6bn (£10bn), compared with $5.7bn for Apple.

    Microsoft also reported bigger full-year revenues of $58.4bn, with Apple on $36.5bn.

    Apple's shares closed Wednesday trading down 0.4% at $244.11, while Microsoft fell by 4% to $25.01.

    iPhone boost

    The value of a listed company, known as market capitalisation, is calculated by multiplying the number of shares in a company by the current share price.

    MICROSOFT V APPLE
    Continue reading the main story
    Annual revenues: Microsoft $58.4bn, Apple $36.5bn
    Annual net profits: Microsoft $14.6bn, Apple $5.7bn
    Earnings per share: Microsoft $1.62, Apple $6.29
    Price/earnings ratio: Microsoft 12.8, Apple 24.
    Apple, which makes computers, iPods, iPhones and now iPads, almost went out of business in the 1990s.

    Its growth is partly owing to the launch of the iPod in 2001.

    Although the iPod works with computers running Microsoft's Windows operating systems, it encouraged more people to to buy one of Apple's computers.

    The big popularity of the iPhone, which has become a big seller since it was first released in 2007, has further boosted Apple's profits and revenues.

    Continue reading the main story
    It's a long game, we have good competitors. we too are a very good competitor
    Steve Ballmer

    Microsoft chief executive
    The handset has brought internet access on the move to the mass market, and led to an explosion in downloadable mobile "apps" - applications that enable a huge range of activities, from map reading to booking restaurants.

    A new version of the iPhone is expected to be unveiled next month.

    Meanwhile, this week sees the launch in the UK and eight other countries of Apple's iPad tablet computer.

    This has already proven to be a big seller in the US, so much so that the UK launch was postponed to enable Apple to keep up with demand in the US.

    Heyday

    Apple has to look back to late 1989 to see the last time it was a bigger company than Microsoft.

    [​IMG]Microsoft, whose operating system runs on more than 90% of the world's personal computers, has not been able to match growth rates from its heyday of the 1990s.

    Microsoft continues to make the majority of its earnings from its software and operating systems, and has struggled to successfully diversify into other products.

    However, Microsoft has achieved success with its XBox games console.

    Questioned on the news that Apple was now a bigger company, Microsoft's chief executive Steve Ballmer said his firm would continue to follow a long-term strategy.

    "It's a long game, we have good competitors. we too are a very good competitor," he said.

    "We are executing very well and that is going to lead to great products and great success."
    http://news.bbc.co.uk/1/hi/business/10168684.stm
     
  2. Super Sarge

    Super Sarge New Member

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    Yes they have, and you know they have made it when Uncle Sam starts investigating them for Anti-Trust Violations which is now happening. They finally learned how to piss on tall trees so they are eligible to run with the big dogs:eek::eek::eek:
     
  3. Highwayman

    Highwayman Extraordinary Member

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    I makes me smile when Steve Jobs and his cronies start pouting on about the rivalry with MS as if they matter in the computer world with their less than 10% share, they making most of their money from I-pods and Phones so are really only competing with the likes of Sony and Telecoms companies like Nokia etc in the big leagues, they are still minor league when it comes to computer tech.

    I'm not defending MS's attempts to follow into the same markets with products that simply haven't sold in big numbers, that was more down to poor marketing than a bad product, and we all know when it comes to making bland looking white plastic boxes with 2nd rate hardware sell like hotcakes, Apple are the clear winner in convincing people they are special if they own them, MS hasn't really been good at marketing but they thankfully have better software products that are much better than Apple's so they keep outselling Apple on quality, Windows 7 is a testament to that as it's already sold more than the entire MAC OS user base in less than a year.
     

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