The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
5 Signs You're Getting Robbed at the Hospital
Even the thought is hard to believe for anyone who's been watching Apple Inc. (AAPL) over the long run. Once upon a time, the company was presumed dead, while Microsoft Corporation (MSFT) continued its march to market dominance. Today, Apple's $180 billion market value is evidence of a new era. Though it's still behind Microsoft's $250 billion, the company's rapid ascent and substantial market presence make at least speculation of catching up to the Redmond giant worth a few minutes of thought.
Microsoft is currently the most valuable technology company in the world, according to a Reuters report. Even Google, Inc (GOOG), with its astounding brand recognition and position as gateway to the internet, is worth "only" $136 billion. Apple, which was once considered a computer company that sold into education and appealed to some graphics geeks, has reasserted itself as a major global presence.
Make no mistake about it: the gap is still wide. In addition to being almost 50% more valuable than Apple, Microsoft's revenue of $58.4 billion (up 47% since 2005) still far exceeds Apple's $36.5 billion (up by a factor of greater than four for the same period). And, let's not forget Microsoft's 90% market share of the desktop operating system segment.
Apple was able to grow in a Microsoft world by moving away from the desktop, becoming a device manufacturer (iPhone), online and brick-and-mortar retailer (iTunes and Apple stores, with a new one under construction in Manhattan) and through an increase in the appeal of its laptops and desktops.
With $3.1 billion in cash flow from operations last quarter, it now has $34 billion in cash and cash equivalents, making its per-share cash holdings roughly $37. That buys a lot of flexibility, upping the company's growth prospects. And, since it doesn't necessarily have to go head-to-head with Microsoft or Google to grow, there's little standing in the way of a much higher market cap.
Will Apple pass Microsoft? Well, it's hard to say right now. But, the possibility can no longer be called "remote."
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
11-10-2009 @ 11:24PM
Beltway Greg said...
Dec. 2010.
11-12-2009 @ 4:17AM
DFXD said...
1-MS DOES NOT BUILD HARDWARE-SO STRICTLY SPEAKING THEY ARE NOT IN COMPETITION
2-THE REASON APPLE WENT SOUTH WAS THAT THEY REFUSED TO REALIZE HOME COMPUTERS WOULD FIND UNIVERSAL ACCEPTANCE(STEVE OBVIOUSLY WAS NEVER INTRODUCED TO SCI-FI) AND THEREFORE REFUSED TO COMPETE.
3- THEY STILL REFUSE TO BE COMPETITIVE SO-PC S AND MICROSOFT WILL ALWAYS BE THERE.
11-19-2009 @ 11:29AM
Cha-Che said...
"Is Apple closing in on Microsoft" that's the title... Seriously? Of course Apple isn't anywhere closing in on Microsoft, not yet at least. I highly doubt that Apple will ever get on Microsoft's level.