Apple Crossed Microsoft in Market Capitalization
Although, only marginally, Apple’s market capitalization crossed that of Microsoft for the first time and it now holds the distinction of being the second-largest US Company by market capitalization, after Exxon Mobil.
- Exxon Mobil Corporation – 282.02B (Market Cap)
- Apple Inc. – 228.56B
- Microsoft Corporation – 228.12B
Apple, in its long march to the top, left Wal-Mart behind a few months ago, and held the third highest market capitalization. In less than three months, it leaves Microsoft behind, which is a feat appreciated and attributed to investor and customer enthusiasm for the hot product launches from Apple, and Steve Jobs is hailed as the master of innovation.
While Apple’s stock continued to rise, Microsoft’s dwindled in value, leading to Apple surpassing Microsoft.
It is interesting to note that in 1990, Apple was worth far more than Microsoft but by 1998, Microsoft was valued at an unbelievable 556 billion dollars and Apple just 16 billion dollars. Even if we look at the figures last month, Microsoft’s market cap was larger than Apple’s by about $25 billion.
Many are of the opinion that the reason investors are showing more interest in Apple is because it broke new ground with the revolutionary new device introduced in 2001 – the iPod, and continued to work on other hot items like the iPhone and the new iPad; while Microsoft rested on its laurels for too long and hasn’t done anything innovative in years.
Experts opine that Microsoft, whose operating systems are used on more than 90% of the personal computers, just has to innovate more in order to stay competitive.